Our Responsible Investment approach
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Responsible Investment Strategies at NAM
NAM’s Responsible Investment flagship solutions include both our ESG STARS family and our ESG Thematic range. The ESG STARS strategies are about positive selection of quality companies with well managed ESG profiles that could generate long-term financial value, while the ESG Thematic strategies offer investors a focus on specific aspects of sustainability.
ESG STARS strategies – Tomorrow’s winners Our ESG STARS range is built on the belief that companies and issuers that integrate both ESG and financial metrics into their strategic decisions will be tomorrow’s winners. In these strategies, we aim to beat the benchmark through investing in companies or bonds that meet NAM’s ESG standards20. Every investment in our ESG STARS strategies is examined through both an ESG and a financial lens. Our ESG analysts work close- ly with the investment teams to identify material sustainability risks and opportunities relating to the companies’ medium- to long-term operational performance and market positioning, and the results of their analysis feed into proprietary ESG tools that are integrated into the investment process. Active ownership and engagement are an important part of the ESG STARS’ investment approach. Our RI team and investment boutiques operate in close collaboration to engage in produc-
Today we have around 250 funds that have additional ESG fil- ters and policies that go beyond our corporate overlays. These funds are classified as either Article 8 or 9 as per European Sustainable Finance Disclosure Regulation (SFDR). All our Article 8 and 9 funds consider PAI on sustainability factors as part of their investment processes. As a result, they are all eli- gible under MiFID II to be selected for clients with sustainability preferences. Going a step further, we have special ESG flagship strategies in the ESG STARS family and our ESG Thematic range. The ESG STARS funds follow an approach of full ESG integra- tion and positive selection, while the ESG Thematic strategies seek solutions to specific sustainability challenges, such as our Global Climate and Environment Strategy, one of the largest article 9 funds in Europe. Our credentials extend to international ESG labels such as LuxFLAG ESG Label17, Label ISR18 and the Towards Sustainability Label19.
17) LuxFLAG is an international and independent non-profit association and labelling agency. To promote sustainable investing in the financial industry, LuxFLAG awards an independent and transparent label to eligible investment vehicles in Microfinance, Environment, ESG (Environment, Social, Governance), Climate Finance and Green Bonds. The objective is to reassure investors that the labelled invest- ment vehicle invests in a responsible manner. The LuxFLAG ESG Label is valid for one year. Investors must not rely on LuxFLAG or the LuxFLAG Label with regard to investor protection issues and LuxFLAG cannot incur any liability related to financial performance or default. 18) Label ISR is created and supported by the French Finance Ministry. The label’s goal is to increase the visibility of SRI prod- ucts among savers in France and Europe. For more information on the Label ISR, visit www.lelabelisr.fr/en/what-sri-label/. 19) We have received recognition from the Belgian Central Labelling Agency in the form of “Towards Sustainability” label. The label was launched in 2019 and it aims to install trust and reassure potential investors that the financial product is managed with sustainability in mind and is not exposed to very unsustainable practices, without requiring of investors to do a detailed analysis themselves. For more information on the “Towards Sustainability” label, visit www.towardssustainability.be. 20) There can be no warranty that an investment objective, tar- geted returns and results of an investment structure is achieved. The value of your investment can go up and down, and you could lose some or all of your invested money.
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