Investment Institute

Three steps the EU has taken to reduce confusion

  • 29 September 2021 (7 min read)

When it comes to responsible investing there can be some confusion, in this video we take a look at three steps the European Union has taken to reduce confusion.

This is broken down into the three steps below:

The European Union (EU)’s Sustainable Finance Disclosure Regulation (SFDR) came into force in March 2021.

  1. The French stock market regulator, the Autorité des marchés financiers (AMF) has published a recommendation known as the 2020-03 AMF Doctrine.
  2. In 2020 the EU published a common language called the ’EU taxonomy’, a classification system to establish an agreed list of environmentally sustainable economic activities.
  3. There are no common standards for how an asset manager should approach responsible investing. At AXA IM we carefully adhere to all new regulation and have also developed our own methods for scoring potential investments against ESG factors, with a commitment towards greater transparency.

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    This promotional communication does not constitute on the part of AXA Investment Managers a solicitation or investment, legal or tax advice. This material does not contain sufficient information to support an investment decision.

    Due to its simplification, this document is partial and opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee forecasts made will come to pass. Data, figures, declarations, analysis, predictions and other information in this document is provided based on our state of knowledge at the time of creation of this document. Whilst every care is taken, no representation or warranty (including liability towards third parties), express or implied, is made as to the accuracy, reliability or completeness of the information contained herein. Reliance upon information in this material is at the sole discretion of the recipient. This material does not contain sufficient information to support an investment decision.

    The ESG data used in the investment process are based on ESG methodologies which rely in part on third party data, and in some cases are internally developed. They are subjective and may change over time. Despite several initiatives, the lack of harmonized definitions can make ESG criteria heterogeneous. As such, the different investment strategies that use ESG criteria and ESG reporting are difficult to compare with each other. Strategies that incorporate ESG criteria and those that incorporate sustainable development criteria may use ESG data that appear similar, but which should be distinguished because their calculation method may be different.

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