Sustainability information
Information on sustainability risks for financial products
What are sustainability risks?
Sustainability risks (ESG risks) are defined as events or conditions from the three areas of environment, social and governance, the occurrence of which could have a negative impact on the value of the investment. These risks can affect individual companies as well as entire sectors or regions.
- Environment: As a result of climate change, an increase in extreme weather events could pose a risk. This risk is also known as physical risk. An example of this would be an extremely dry period in a particular region. This could cause the levels of transport routes such as rivers to drop to such an extent that the transportation of goods could be impaired.
- Social: In the social area, risks could arise, for example, from non-compliance with labor law standards or health protection.
- Corporate governance: Examples of risks in the area of corporate governance include non-compliance with tax honesty or corruption in companies.
Information on the inclusion of sustainability risks in advisory activities (Art. 3 TVO)
In order to take sustainability risks into account when providing advice, the information provided by providers (financial market participants) and their financial products is taken into account when selecting them.
Providers who clearly do not have a strategy for including sustainability risks in their investment decisions may not be offered.
As part of the advisory service, a separate presentation may be made if the consideration of sustainability risks in the investment decision has identifiable advantages or disadvantages. disadvantages for the customer.
The respective provider provides information on the consideration of sustainability risks when making investment decisions in its pre-contractual information. The customer can ask questions about this in the run-up to a possible contract.
Information on the consideration of adverse effects on sustainability factors (Art. 4 TVO in conjunction with Art. 11 of the supplement to the TVO dated January 1, 2023)
Statement on the consideration of the main adverse impacts on sustainability factors of both investment and insurance advice:
When advising you, our aim is to be able to recommend a suitable investment/insurance product. We also take your sustainability preferences into account, if you wish. You can specify whether your investment should take into account environmental and/or social values and principles of good corporate governance and/or the main adverse impacts of investment decisions on sustainability factors. Depending on the type of investment objective (investment in companies, countries, real estate, etc.), legislators have defined “indicators” for the most important adverse effects of their investment decisions on sustainability factors in the following areas:
- Environmental, social and employee matters
- Respect for human rights
- The fight against corruption and bribery.
Product providers are required by law to publish a statement outlining their strategy for considering and managing the most significant adverse impacts. This relates in particular to greenhouse gas emissions, water consumption, biodiversity, waste, social and employee matters (including human rights and corruption). If you decide that the main adverse impacts of your investment decisions on sustainability factors should be taken into account in both product selection processes, we will consider the information provided by the product providers and the strategies outlined by the product providers as part of the selection process.
We do not apply our own classification and selection methods to the information provided by product suppliers. The plausibility of the information provided by the product providers is not checked separately.
Status: 09.03.2023
