New Classification Scheme for Sustainable Investments
Eurosif, the University of Hamburg, and F.I.R.S.T. e.V. have published a White Paper on a transition-focused classification scheme for investments. This new scheme illustrates the potential of different investment products and their investment approaches to create impact and contribute to a sustainable transition. As such, it goes beyond the current ability of concepts used in the SFDR, the EU Taxonomy and MiFID II. Further, it is a first essential step towards developing a scheme that can serve as the classification logic in future market studies.
Review and assessment activities for the FNG-Label
In the future, F.I.R.S.T. e.V. will be responsible for the review and assessment activities related to the certification by the German-speaking SRI quality standard of the FNG Label.
The FNG-Label is the quality standard for sustainable investment funds in German-speaking countries. The holistic methodology of the FNG-Label is based on a minimum standard. These include transparency criteria and the consideration of labor & human rights, environmental protection and anti-corruption as summarized in the globally recognized UN Global Compact.
All companies in the respective fund must also be fully analyzed for sustainability criteria and the product must have an explicit sustainability strategy. Investments in nuclear power, coal mining, small-scale coal-fired power generation, fracking, oil sands, tobacco production and weapons & armaments are excluded. High-quality sustainability funds that excel in the areas of “Institutional Credibility”, “Product Standards” and “Portfolio Focus” (stock selection, engagement and KPIs) receive up to three stars.