Sustainable Products in Asset Management
Swiss Life offers a range of sustainable products in asset management that meet the requirements of the EU Transparency Regulation (SFDR).
In business with third parties, clients can access Swiss Life’s ESG competencies and experience. In asset management, Swiss Life has a range of sustainable investment products in the largest asset classes: bonds, equities, real estate and infrastructure. In addition, so-called “impact products” (compliant with Art. 9 of the Sustainable Finance Disclosure Regulation/SFDR) have been developed in the real estate and equities areas. They focus on investments that measurably promote sustainable development. Furthermore, Swiss Life is developing new investment solutions and strategies in various asset classes that are geared to specific ESG topics or to companies that meet strict sustainability criteria.
In the year under review, Swiss Life pushed ahead with the Regulatory Technical Standards (RTS, SFDR Level 2) as part of the implementation of the EU Transparency Regulation (SFDR). Based on the classification of third-party client products into different categories, Swiss Life created the various rules on pre-contractual information and reporting and integrated them into its processes. Initial measures have also been developed to integrate sustainability proliferation into the sales process in accordance with the amendments to MiFID II (Markets in Financial Instruments Directive II). Moreover, Swiss Life is drawing on the findings gained from the implementation of SFDR, RTS and MiFID II and is analysing the proprietary insurance asset management portfolio in respect of the necessary criteria so that portfolios have an ESG strategy and/or can be declared compliant with Art. 8 SFDR.
In March 2021, the Transparency Regulation (Sustainable Finance Disclosure Regulation; SFDR) came into force in the EU. It defines various transparency obligations, especially for financial and insurance products. Various transparency requirements apply, depending on a product’s sustainability. There are essentially three groups of products:
- Article 6 products: either include sustainability risks in investment decisions or disregard them.
- Article 8 products: promote ecological or social characteristics
- Article 9 products: target sustainable investments