SUSTAINABLE FINANCE DISCLOSURE REGULATION
EU introduced under the Sustainable Action Plan a series of new legislative measures which connect finance with sustainability.Key regulation includes a classification system for sustainable activities (Taxonomy) and the mandatory disclosures and labels for green financial products (SFDR).
(EU) 2019/2088 (“SFDR”) requires financial market participants and financial advisers, such as Blueport Investment Services Ltd, to provide information to investors with regards to the integration of sustainability risks, the consideration of adverse sustainability impacts and the promotion of environmental or social characteristics, and sustainable investments in their investment decision making process.
Integration of sustainability risks in the investment decision-making process
(SFDR – Article 3 disclosure)
Blueport as part of its investment decision-making process/investment advice, and its risk management procedures, it carries out due diligence and monitors a spectrum of risk factors. The Company recognizes the need to consider sustainability risk (environmental, social and governance -“ESG”) event if it occurs, could cause an actual or a potential material impact on the value of an investment in its investment decision-making process.
Pursuant to this commitment, we are gradually integrating ESG metrics in our investment process in different asset classes with the goal to minimize risks, improve financial returns and at the same time have a quantifiable improved ESG footprint.
Sustainability risks will be assessed among several other risk factors, as part of the risk assessment performed for the provision of portfolio management and advisory services to clients. The applicability of the standards and of the analysis may vary depending on the type of the managed portfolio, the asset class, the region, the instrument used, the mandate and possible specific client instructions as well as the type of services provided. (i.e Advisory mandates, cash and cash equivalent are excluded as asset classes from ESG investment policy and strategy). Evaluating sustainability risk is challenging since many times scarcity of reliable data and the fact that relevance and materiality of sustainability factors vary across asset classes and securities.
When Blueport will be assessing the ESG factors, it will rely on information from external data providers, and although a qualitative review is to be performed, the Company cannot be responsible for the accuracy of this data.
No consideration of sustainability adverse impacts
(SFDR – Article 4 disclosure)
Blueport does not, at the present time, consider the adverse impact of sustainability factors in its investment decisions or investment advice for the portfolio strategies it currently manages. Principle adverse impacts are, either not relevant at the moment, or there is currently not available, accessible, relevant and comparable data to perform the adverse impact assessment.
As of today none of our managed portfolios pursue an investment strategy that promotes ESG characteristics or has a sustainable investment objective as defined in Regulation (EU) 2019/2088 of 27 November 2019 on sustainability-related disclosures in the financial services sector (SFDR). In addition, we do not deem the investment decisions to have adverse impact on sustainability factors.
Blueport, will continue to closely monitor regulatory developments with respect to SFDR and other applicable ESG-focused – laws and regulations and will consider adopting the principal adverse impacts following the finalisation of the SFDR Level 2 Regulatory Technical Standards (RTS).
Remuneration Policy
(SFDR – Article 5 disclosure)
Blueport currently does not expect to make any changes to its remuneration policy in relation to sustainability risks, as its remuneration policy in general does not encourage excessive risk taking, including risk taking in terms of sustainability risks. Blueport, will reconsider whether to apply any changes to its remuneration policy in the future, and the relevant policy as well as the website will be updated.
Last updated: June 2024