What is the Article 9 sustainable investment objective? (2024)

What is the Article 9 sustainable investment objective?

Article 9 products seek to make a positive impact on society or the environment through sustainable investment and have a non-financial objective at the core of their offering. For both Article 8 and 9 products ESG considerations are binding. How will the MSIM Funds that I invest in be classified?

What is Article 9 sustainable objective?

Article 9 requirements:

The primary investment objective is sustainability. There is no significant harm done to other environmental- or social objectives. Information about sustainability characteristics and their impact is transparently disclosed.

What is the objective of sustainable investment?

Sustainable investment means an investment in an economic activity that contributes to an environmental or social objective, provided that the investment does not significantly harm any environmental or social objective and that the investee companies follow good governance practices.

What is Article 9 of the climate funds?

Article 9 funds operate within a regulatory framework that encourages transparency and accountability. The Sustainable Finance Disclosure Regulation (SFDR) in the European Union, for example, requires fund managers to disclose the environmental and social impact of their investments.

What is Article 9 of the EU Taxonomy?

Article 9 of the Taxonomy Regulation sets out six climate and environmental objectives.

What does Article 9 provide?

Article 9 of the Indian Constitution states that “Persons voluntarily acquiring citizenship of a foreign State not to be citizens”.

What is Article 9 under the sustainable finance disclosure regulation?

Article 9 products seek to make a positive impact on society or the environment through sustainable investment and have a non-financial objective at the core of their offering. For both Article 8 and 9 products ESG considerations are binding. How will the MSIM Funds that I invest in be classified?

What is a sustainable objective?

The Sustainable Development Goals (SDGs), also known as the Global Goals, were adopted by the United Nations in 2015 as a universal call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity.

What is the concept of sustainable investment?

Sustainable investing is an investing philosophy wherein an investor takes a company's environmental, social, and corporate governance (ESG) factors into account.

What is a sustainable investment?

Sustainable investing definition

Sustainable investing considers a company or investment's impact on the environment and society in addition to financial returns. Sustainable investing often uses environmental, social and governance (ESG) criteria when evaluating an investment.

Are Article 9 funds impact funds?

Using a new typology of sustainable investments, we show that Article 9 funds pursue varying degrees of ambition: while 60% of funds follow an impact-oriented investment strategy, we identify 40% that are not impact-related but rather pursue an Environment, Social, and Governance (ESG) investment strategy.

What is the difference between Article 8 and 9 funds?

SFDR Classifications

An Article 6 classification does not have a sustainable investment objective. An Article 8 classification promotes environmental or social characteristics, while Article 9 has a sustainable investment objective.

What does Article 9 of the Paris Agreement mean?

Article 9.1 reiterates the commitment of developed countries under the UNFCCC to provide financial resources to assist developing countries mitigate and adapt to climate change, and article 9.5 requires developed countries to provide quantitative and qualitative information on a biennial basis about their financial ...

Are the majority of ESG funds dark green?

Our market analysis of ESG funds showed that, out of all index-tracking ESG funds, 88% are broad ESG funds. But there are also “light green” and “dark green” ESG funds, which do not track conventional or benchmark stock indices as closely.

What is the EU Taxonomy for sustainable finance?

The EU taxonomy allows financial and non-financial companies to share a common definition of economic activities that can be considered environmentally sustainable.

What are the criteria for sustainable finance?

These criteria include analysis of the impacts of business activities in terms of carbon emissions, biodiversity protection, waste management, etc.; societal impacts; and the set of rules that govern the way companies are controlled and managed.

What is Article 9 simple?

The main point of Article 9 is to be a secured creditor:

If a creditor is secured it has a claim in something of the buyer's (the goods exchanged for future payment or other collateral). This gives the creditor: Right of repossession of goods extended in exchange for future payment if the payment is never made.

What is the Article 9 sale of assets?

Article 9 sets out a framework that permits a secured creditor to repossess and dispose of its collateral efficiently and inexpensively while providing the debtor with various procedural protections. The trigger for the sale is the debtor's default on its obligations to the lender under the applicable loan documents.

What are the types of collateral in Article 9?

Although a “Right to Payment” is not a defined term in Article 9 and not used within the text of the statute, it is a helpful way to conceptualize collateral categories defined in Article 9 as “accounts,” “chattel paper,” “instruments,” “investment property,” “deposit accounts” and “letter of credit rights.”

What is SFDR Article 9 impact investing?

Adhere to the “Do no significant harm” principle, which emphasizes the importance of assessing and mitigating any adverse impacts that may arise from an investment's business activity; An Article 9 fund must ensure that the companies it invests in follow good governance principles.

What is the sustainable financial disclosure regulation?

About SFDR – Sustainable Finance Disclosure Regulation

The Sustainable Finance Disclosure Regulation (SFDR) defines and introduces transparency requirements on financial products' characteristics that can be used and compared to assess their degree of sustainability.

What is sustainable finance disclosure?

The EU Sustainable Finance Disclosure Regulation (SFDR) is a set of EU rules which aim to make the sustainability profile of funds more comparable and better understood by end-investors.

What are the key objectives and goals of a sustainability plan?

A sustainable business will implement changes that reduce emissions, improve air quality, and identify products that reduce concerns about health and safety liability. This promotes higher standards of public health and environmental protection.

What are the three main objectives of sustainable development?

Sustainable development is based on three fundamental pillars: social, economic and environmental. The Brundtland report, which sustainable development is gets its name from – delineated the development of human resources in form of extreme poverty reduction, global gender equity, and wealth redistribution.

What is the primary objective of a sustainable organization?

The primary aim of sustainability is to meet the needs of the current generation in a way that does not compromise the potential of the future generations to do the same. Sustainability management comprises the organizational practices that ultimately lead to sustainable development.

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