The Sustainable Finance Disclosure Regulation (or SFDR) is one of the deliverables of the EU’s action plan launched in 2018 to redirect capital flows towards more sustainable activities. SFDR requires financial market participants and financial advisers to make disclosures on the integration of sustainability risks, on the consideration of adverse sustainability impacts, on sustainable investment objectives, or on the promotion of environmental or social characteristics, in their investment decision‐making and in advisory processes, to end investors.
SFDR sets out the rules which define the nature and form of sustainability-related information that should be disclosed with respect to a given financial product.
SFDR does not define what a sustainable financial product is. The regulation aims to ensure that any product marketed as ‘sustainable’ provides specific information on its environmental, social and governance (ESG) credentials.
SFDR creates two categories of sustainable financial products, defined in article 8 and 9 of the regulation, with specific disclosures applicable to them.
Sustainability is at the heart of Candriam’s investment approach. A number of financial products managed by Candriam have been classified as either article 8 or article 9 products. The following pages provide more information about the regulation and the way it has been implemented by Candriam.
High level statement of the SFDR regulations which came into force in March 2021, including the classification of financial products according to whether they have a sustainable investment objective or whether they promote environmental or social characteristics.
In this report Candriam describes the principal adverse impacts of investment decisions on sustainability factors, the results at Candriam level for these principal adverse impacts, the actions taken or actions planned. This report covers the period of 1 January until 31 December of the preceding year.
The information presented in this disclosure applies to Candriam’s Article 9 products in general. While Candriam’s Article 9 products share the common characteristics presented in this document, these products can have different investment strategies and different environmental or social focuses. As a result, in addition to the elements presented in this document, Candriam’s Article 9 products may be subject to specific characteristics, methodologies and indicators that can vary from product to product. For a detailed view of these product-specific elements, please refer to the dedicated webpages that are accessible via Candriam’s website.
The information presented in this disclosure applies to Candriam’s Article 8 products in general. While Candriam’s Article 8 products share the common characteristics presented in this document, these products can have different investment strategies and different environmental or social focuses. As a result, in addition to the elements presented in this document, Candriam’s Article 8 products may be subject to specific characteristics, methodologies and indicators that can vary from product to product. For a detailed view of these product-specific elements, please refer to the dedicated webpages that are accessible via Candriam’s website.
The information presented in this disclosure applies to Candriam’s Article 8 products in general. While Candriam’s Article 8 products share the common characteristics presented in this document, these products can have different investment strategies and different environmental or social focuses. As a result, in addition to the elements presented in this document, Candriam’s Article 8 products may be subject to specific characteristics, methodologies and indicators that can vary from product to product. For more detail on the characteristics, you may refer to the table at the end of the document
For certain investment funds for which Candriam has delegated the financial management and the marketing to a third-party, the relevant required SFDR information is available on Candriam website, and if not, on that third-party's website.
Sustainability is rooted in Candriam's operating model and forms a key part of its corporate culture. As part of our conviction and of our fiduciary duty to our clients, Candriam’s sustainable development strategy leads it to incorporate the overall sustainability trends that will shape the world of tomorrow into our strategic operational and investment choices.
In this document, Candriam describes the due diligence policies it has put in place to identify and mitigate the principal adverse impacts on sustainability factors caused by security issuers held in Candriam portfolios.
Candriam has demonstrated its long-standing commitment to sustainable investing for over 25 years. The firm launched its first sustainable strategy in 1996 and is proudly amongst the founding signatories of the 2006 UN PRI. As a recognised leader in sustainability, the firm believes its actions should have a positive impact on all of its stakeholders.
Candriam uses its proprietary ESG framework to define more precisely what it considers a ‘sustainable investment’ under SFDR. This framework contains Candriam’s interpretation and views and is subject to review at any time. ‘Sustainable investment’ is defined by Candriam at company level for corporate investments and at country level for sovereign investments.
The European Union’s Sustainable Finance Disclosure Regulation (SFDR) defines sustainability factors as environmental, social and employee matters, respect for human rights, anti-corruption and anti-bribery matters. Investment decisions and advice have direct or indirect impacts which may result in negative effects on sustainability factors. “Principle adverse impact” (PAIs) are defined as negative, material or likely to be material effects on sustainability factors (environmental, social and employee matters, respect for human rights, anti-corruption and anti-bribery matters) that are caused, compounded by or directly linked to investment decisions and advice performed by the legal entity.
The principle of ‘do no significant harm’ (DNSH) under European Union’s Sustainable Finance Disclosure Regulation (SFDR) is linked to the consideration of “principal adverse impacts” and alignment of the investments with the so-called ‘minimum safeguards’.
In this document we provide details on the calculation methodology for ESG and impact indicators, including data sources, formulas, and potential limitations of calculations.
The employees of Candriam are its key assets. Candriam’s objective is to operate an appropriately tailored remuneration policy which is linked to the achievement of a combination of individual, team and corporate goals. It should also be competitive versus peers to attract, motivate and retain talents while ensuring that remuneration is consistent with sustainable business development.
As a Responsible investor, Candriam pays particular attention to the corporate governance policies, structures and practices of the companies in which it invests on behalf of its customers and the funds under management. It is Candriam’s conviction that sound corporate governance practices deliver long-term shareholder value
The Investment Stewardship concept calls on investors to use all means at their disposal to create: long-term value for their clients and beneficiaries & sustainable benefits for the economy, the environment and society.
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