This site contains information on sustainability-related aspects of Invest in Visions as a company and of the investment funds managed by it, as required by the Regulation on Sustainability-Related Disclosures in the Financial Services Sector (EU/2019/2088) (hereinafter the "SFDR"). The information contained herein (as of January 10, 2023) replaces the information last published on this page on November 8, 2022. In particular, the information regarding:
- the transparency of Invest in Visions' strategies for managing sustainability risks in accordance with Article 3 of the SFDR,
- the transparency of Invest in Visions' remuneration policy in relation to the consideration of sustainability risks pursuant to Article 5 of the SFDR, and
- the transparency of sustainable investments of the investment funds managed by Invest in Visions on websites pursuant to Article 10 of the SFDR
has been revised and updated. The following disclosures now go into more detail with respect to the respective required disclosures of Invest in Visions as a company and differentiate them from the information on the investment funds managed by Invest in Visions. The previous version of this sustainability-related disclosure can be found here.
As a pioneer in impact asset management, we are focused on sustainable financial products. All of the investment funds managed by us correspond to the classification of Article 9 of the SFDR and have the objective of sustainable investments.
We always strive to ensure that the funds managed by us invest in companies that are not only financially sustainable, but also help solve socio-economic problems. We communicate as transparently as possible on how we apply our impact strategies to the funds in order to contribute to the 17 UN Sustainable Development Goals ("SDGs").
Below, we describe how we comply with the disclosure requirements set forth in the SFDR.
Sustainability risks describe the risk of negative impacts from ESG factors on the investments made by the funds for which Invest in Visions acts as portfolio manager. ESG factors describe factors from the areas of Environment, Social or Governance.
In this context, sustainability risks can have a negative impact on the funds' investments, which can result in earnings risks. The following sustainability risks may occur, among others:
- Environmental risks such as physical risks (e.g., drought, extreme weather, and pandemics) or transition risks associated with the transition to a low-carbon economy (e.g., due to impacts of policy changes)
- Social risks such as social upheaval, hunger, the risk of over-indebtedness of end-borrowers reached by credit funds, ineffective measures to combat fraud or corruption
- Governance risks such as regulation, legal uncertainty, lack of political stability
In addition, it is possible that the investment made may have an unintended negative impact on ESG factors that is contrary to the funds' stated objectives.
Incorporating Sustainability Risks into Investment Decisions.
Sustainability risks are integrated throughout the investment process. A risk inventory was conducted to ensure the broadest possible analysis of sustainability risks before each investment decision. The resulting risk inventory list provides the basis for identifying and evaluating sustainability risks. The risks are integrated into the investment process as follows:
- Identification of material sustainability risks based on information provided by the investment managers and internal analysis based on the risk inventory list
- Incorporation of ESG risks into the investment decision based on the risk appetite and discussion of material risks with the investment managers during the investment committee
- Documenting the incorporation of sustainability risks into the investment decision
- Monitoring of risks and evaluation of emerging risks in the portfolio risk committee.
In addition, the respective sustainable investment strategy of the products, the consideration of material adverse impacts on sustainability factors (so-called Principal Adverse Impacts; "PAI") and the application of exclusion criteria contribute to further reducing the sustainability risks.
Inclusion of Sustainability Risks in the Remuneration Policy
Invest in Visions strives to promote social and economic inclusion through its investments and actions and sees this as an integral part of its corporate mission. As a result, matters of sustainability– including sustainability risks – are integrated throughout the company. Sustainability risks are therefore not separately taken into account in its remuneration policy.
Adverse Effects of Investment Decisions on Sustainability Factors
In the context of its investment decisions, Invest in Visions takes into account so-called principal adverse impacts on sustainability factors (PAI). Sustainability factors in this context refer to environmental, social and employee concerns, respect for human rights and the fight against corruption and bribery in accordance with Article 2 (24) of the SFDR. The description and specific consideration of PAIs can be found in the sustainability-related disclosure of the respective fund.
Strategies for Identifying and Weighting Adverse Sustainability Impacts
Investments are selected using an extensive, three-stage structured screening process. First, certain sectors, activities, or commodities are excluded as investments as well as on the level of the on-lending. In addition, investments must meet certain norms (norm-based screening). Second, the selection and analysis of investments is based on operational, financial and sustainability criteria (KPIs) that must be met. These criteria are checked by the responsible investment managers as part of the due diligence process. To evaluate the sustainability performance of the investment, the fund management uses an ESG analysis tool (SPI4-ALINUS – industry-recognized scoring tool). This provides information on social and environmental performance as well as the governance structure of the investments. Moreover, sustainability risks are identified and assessed as part of this analysis. Third, the investments are assessed with regard to defined positive criteria. If these requirements are met, the investment can be made.
Together with other impact investors, Invest in Visions is part of a working group with a focus on standardizing methods and metrics for the reporting of PAI indicators.
Consideration of International Standards
Invest in Visions is committed to several international standards in the field of impact investing. In the context of responsible investing, we are signatories to the United Nations Principles for Responsible Investment (UNPRI). The six principles for responsible investment define general principles for incorporating ESG issues into investment practices. As part of our annual reporting, we publish information on the consideration of ESG issues in the company's various activities. Specific to impact investing, we have signed the Operating Principles for Impact Management (OPIM). The nine principles of impact management are based on the approach that the intended impact of an investment is actively included in the investment decision and subsequently managed. This is done through our investment decision process.
All our managed funds classify under Article 9 of the the SFDR. Please see below for fund-specific disclosures.
Sustainability Disclosures IIV Mikrofinanzfonds (in German)
Further Sustainability Information
Sustainability profile of the Forum Nachhaltige Geldanlagen exists
Signatory declaration to the European SRI Transparency Code.
Our statement on the Operating Principles for Impact Management (OPIM)
Verifier Statement von BlueMark as of February, 3rd 2023