The Sub-Fund invests 100% of its net assets, net of cash, ancillary liquidity assets and derivatives in sustainable investments, with a minimum share of 20% in sustainable investments with a social objective and a 30% in sustainable investments with an environmental objective. For an investment to qualify as sustainable with a social objective, the investment-level health impact performance indicator needs to be positive. For an investment to qualify as sustainable with an environmental objective, the investment needs either to be EU Taxonomy-aligned or its decarbonisation trajectory, calculated according to the methodological requirements set out in Commission Delegated Regulation (EU) 2020/1818, needs to be consistent with the achievement of Paris Agreement’s objectives and carbon neutrality by 2050. A targeted minimum of 10% of the underlying investments selected for the Sub Fund’s portfolio will be aligned with the first two objectives of the EU Taxonomy, climate change mitigation and climate change adaptation. A targeted minimum of 20% of investments, calculated by excluding cash, ancillary liquidity assets and derivatives at both numerator and denominator, is invested in companies with a decarbonisation trajectory, calculated according to the methodological requirements set out in Commission Delegated Regulation (EU) 2020/1818, consistent with the achievement of Paris Agreement’s objectives and carbon neutrality by 2050. Targeting a minimum investment-level yearly reduction rate of the carbon intensity consistent with achieving carbon neutrality by 2050 allows the investment strategy to allocate capital also in favour of companies consistently making significant efforts to reduce GHG emissions, thus playing a crucial role in contributing to absolute GHG emissions reduction objectives, despite not contributing per se to EU Taxonomy environmental objectives, with investee companies operating in carbon-intensive sectors being particularly relevant in this respect. The portfolio-level net impact ratio needs to be positive. For an investment to qualify as sustainable for the Sub-Fund, it needs to meet at least one of the following screening criteria:
- a positive or improving impact performance, as measured by either the net impact ratio or the SDG performance indicator;
- EU Taxonomy alignment;
- a positive health impact performance indicator;
- a decarbonisation trajectory, calculated according to the methodological requirements set out in Commission Delegated Regulation (EU) 2020/1818, consistent with the achievement of Paris Agreement’s objectives and carbon neutrality by 2050
Companies involved in specific controversial activities (civilian and military weapons, controversial weapons, gambling, tobacco and non-responsible alcohol) or involved in in violations of UN Global Compact principles and OECD Guidelines for Multinational Enterprises or in very severe controversies regarding environmental, social or governance issues, as well as countries with low democratic levels, are excluded from the investible universe of the Sub-Fund.
The Sub-Fund uses derivatives to optimize portfolio equity exposure but not to attain the sustainable investment objective.