Disclaimer
Please read this important information before proceeding further. It contains legal and regulatory notices relevant to the information contained on this website.
The information contained in the Website is NOT FOR RETAIL CLIENTS – The information contained in the Website is solely intended for professional investors, defined as investors which (1) qualify as professional clients within the meaning of the Markets in Financial Instruments Directive (MiFID), (2) have requested to be treated as professional clients within the meaning of the MiFID or (3) are authorised to receive such information under any other applicable laws. The value of the investments may fluctuate. Past performance is no guarantee of future results. Investors may not get back the amount originally invested. Neither Robeco Institutional Asset Management B.V. nor any of its affiliates guarantees the performance or the future returns of any investments. If the currency in which the past performance is displayed differs from the currency of the country in which you reside, then you should be aware that due to exchange rate fluctuations the performance shown may increase or decrease if converted into your local currency.
Robeco Institutional Asset Management UK Limited (“RIAM UK”) markets the Funds of Robeco Institutional Asset Management B.V. (“ROBECO”) to institutional clients and professional investors only. Private investors seeking information about the Robeco Funds should consult with an Independent Financial Adviser. ROBECO will not be liable for any damages or losses suffered by private investors accessing the website.
RIAM UK is an authorised distributor for ROBECO Funds in the UK and has marketing approval for the funds listed on the website, all of which are UCITS Funds. ROBECO is authorised by the AFM and subject to limited regulation by the Financial Conduct Authority.
Many of the protections provided by the United Kingdom regulatory framework may not apply to investments in ROBECO Funds, including access to the Financial Services Compensation Scheme and the Financial Ombudsman Service. No representation, warranty or undertaking is given as to the accuracy or completeness of the information on this website.
If you are not an institutional client or professional investor, you should therefore not proceed. By proceeding, please note that we will be treating you as a professional client for regulatory purposes and you agree to be bound by our terms and conditions.
If you do not accept these terms and conditions, as well as the terms of use of the website, please do not continue to use or access any pages on this website.
Sustainable Investing
What is Sustainable Finance Disclosure Regulation?
The EU Sustainable Finance Disclosure Regulation (SFDR) standardizes metrics for assessing environmental, social, and governance (ESG) impacts of investments, ensuring funds' sustainability profiles are comparable. It mandates detailed disclosures, including identifying harmful impacts caused by investee companies.
The regulation forms part of the EU’s wider Sustainable Finance Framework which is backed by a broad set of new and enhanced regulations that apply across the 27-nation bloc. The SFDR goes hand in hand with the EU’s Sustainable Finance Action Plan which aims to promote sustainable investment across the EU, and a new EU Taxonomy to create a level playing field across the whole EU.
All the new measures are a response to the landmark signing of the Paris Agreement in December 2015, and the United Nations 2030 Agenda for Sustainable Development adopted earlier in 2015, which created the Sustainable Development Goals. The SFDR and other regulations are also aligned with the European Green Deal, which aims to see the EU carbon neutral by 2050.
SFDR regulation
SFDR is an evolving set of EU rules aiming to create a level playing field for how sustainable investment strategies are classified by asset managers. It helps to clarify the definition of a ‘sustainable fund’ and combat the growing threat of greenwashing.
Level I and Level II
Level I of the SFDR was introduced in March 2021. Its most visible and impactful element was the classification of funds and mandates in three categories, as laid down in Articles 6, 8 and 9 of the SFDR.
Article 6 funds: those that do not promote their environmental social or governance (ESG) characteristics.
Article 8 funds: where a financial product promotes, among other characteristics, environmental or social characteristics, or a combination of those characteristics, provided that the companies in which the investments are made follow good governance practices.
Article 9 funds: where a financial product has sustainable investment as its objective and an index has been designated as a reference benchmark.
Most Robeco funds are classified as Article 8, with many of the funds in the Towards Impact Investing range classified as Article 9, and only a handful classified as Article 6.
Level II of the SFDR was introduced in January 2023. The three articles remain in place, but a notable update is in stricter interpretations of what constitutes a wholly sustainable investment. Robeco subsequently updated its operational definitions for its range of funds that wish to be classified as Article 9.
This brought a change in that Article 9 funds must do one of three things. They can only include companies that have positive scores under the SDG Framework which measures the contributions that companies make to the Sustainable Development Goals. Alternatively, Article 9 funds can include funds that set a specific carbon reduction objective and use a Paris-Aligned Benchmark or a Climate Transition Benchmark. Finally, investments in green, social, and sustainability bonds are eligible.
Identifying adverse impacts
Identifying the impacts that fund managers and the companies in which they invest have on wider society was introduced under Level I in June 2021 and tightened under Level II from January 2023. These rules require an asset manager to describe its due diligence policy on how it will take the principal adverse impacts which investee companies have on sustainability factors into account when making investment decisions.
This are monitored using a system of 64 Principle Adverse Impact Indicators (PAIs), of which 18 are mandatory to report, and 46 are voluntary. The compulsory factors range from carbon emissions, fossil fuel exposure and waste levels (E) to gender diversity and due diligence over human rights (S) and a company’s record on exposure to corruption, bribery or other scandals (G).
Having already introduced PAI reporting at the company level in 2021, Robeco began reporting performance at the fund level in January 2023. Article 9 funds will address all the mandatory PAIs; Article 8 funds will report on actions taken to mitigate adverse impacts on an annual basis through regular fund reporting.
