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Article | 15 April 2021 | ESG
Growing green regulations
The EU’s Sustainable Finance Disclosure Regulation (SFDR) came into effect on 10 March. The SFDR is one of a series of European policies designed to encourage the transition to a sustainable economy. Under the new rules, asset managers are required to disclose how they are assessing and managing environmental, social and governance (ESG) risks in their investment processes. Investment products will also be split into three categories, based on their objectives and processes in this area.
Global sustainable finance regulations have increased rapidly in recent years. Governments and regulators created or revised 124 policies in 2020 alone, after 92 in 2019. Many of these are designed to improve the quality and consistency of companies’ ESG reporting, while others highlight how financial institutions should approach ESG and sustainability to ensure the best outcomes for their clients.
SFDR and other regulations aim to give investors greater visibility over the ESG issues they could be exposed to through the companies they invest in. This can help them to make better-informed decisions, and reduces the chance of falling for ‘greenwashing’, where an investment’s ESG claims are exaggerated or incorrect. We see this as a positive, and we believe that a consistent, in-depth analysis of ESG risks and opportunities is essential for successful responsible investing.
Each month, we look at the steps Architas and the AXA Group are taking towards a better, more sustainable future for our employees, communities and the wider world
Last month, we celebrated International Women’s Day with the ‘Choose to challenge’ campaign. Senior staff from Architas and the wider AXA Group highlighted their commitments to achieving gender equality, including Architas CEO Matthieu André. We also held a (Wo)ManCo Fireside Chat with Beatrice Chevrant Breton, France Germani, Tracey Kinsella and Dorothee Rougier. Each speaker shared details about how they’ve achieved success, what inspires them and the obstacles they’ve overcome.
At Architas we specialise in multi-manager, multi-asset investing. We work with fund managers to ensure they are investing responsibly and focusing on environmental, social and governance (ESG) issues. In 2018, we began our journey to full ESG integration across all of our offers, and we aim to achieve this by the end of 2021. Since 2018 we have also been signatories of the United Nations Principles for Responsible Investment. For more information about our responsible investing process please click here.