Investment Insights

What’s Invesco’s response to SFDR?

14 March 2021
Invesco's response to SFDR

Invesco recognises that ESG matters greatly to many of our clients, communities and stakeholders. And it matters to us. Our fundamental belief is that ESG investing is an essential part of the solution to a sustainable future.

But this is not just a belief. We are committed to demonstrating this belief through active ownership and engagement, investment integration, industry advocacy, customised ESG solutions (such as our award-winning low carbon solution) and investment in technology such as our proprietary ESG rating tool ESGintel.

As industry advocates, we welcome the Sustainable Finance Disclosure Regulation (SFDR) that was implemented on 10 March 2021 as part of the EU’s Sustainable Finance Action Plan. (Read more: SFDR: Getting ready for 10 March). In response, we have classified all in-scope products in accordance with SFDR and all our AIF & UCITS Funds comply with the requirements under Article 6.

Additionally, we are pleased to confirm that 18 of our existing Funds comply with Article 8 and that imminent launches and reclassifications are in progress that will bring the total number of Article 8 Funds to 28 by the end of May.

But this is just the beginning. While we acknowledge SFDR is just one piece of a very large puzzle, we are committed to delivering an increasing set of Article 8 products for our clients and are reviewing our full range with the expectation of moving more Funds into the Article 8 category by summer this year. And while we currently have no Funds that meet the criteria of Article 9, we will continue to explore this space. Pivoting and launching Funds is a complex, time-consuming process and we look forward to sharing these developments, and others, with you, over the coming months.

A look towards a greener future

The SFDR is part of a broader package of new rules that form part of the EU Sustainable Finance Action Plan, and it is just the beginning. While the EU is currently a leader when it comes to developing its sustainability regulatory framework, other jurisdictions are not far behind and we are now seeing a number of international initiatives underway to foster convergence and global consistency. We continue to stay abreast of these developments, educate our clients and are committed to continuously monitoring and developing innovative solutions that best meet the needs of our clients. To learn more about the regulatory drives in sustainable investing, read our latest whitepaper: Shifting Gears: Preparing for the new sustainable finance regulations in Europe.

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Investment risks

  • The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

Important information

  • All data is as at 15 March 2021 unless otherwise stated.

    This document is marketing material and is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell securities.

    Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals, they are subject to change without notice and are not to be construed as investment advice.