Since our founding in 1990, we have been investing in socially responsible ways. We have been promoting sustainable development for many years. Meanwhile, sustainable investment has become so successful that there are really no reasons not to do it.
We apply the definition of the United Nations: ”Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” We embrace this definition in everything we say and do, based on ASN Bank’s comprehensive sustainability policy.
We manage your money with respect for people, animals and the environment, and with an eye to the future. Because we want to make a difference – today and for generations to come.
Fair Capital Partners is pleased that the legislator aims to increase transparency in this area and we are therefore pleased to inform you on this page about how we have taken sustainability factors into account since our establishment.
On March 10, 2021, the Sustainable Finance Disclosure Regulation (hereinafter: “SFDR”) came into effect. Under this Regulation, Fair Capital Partners is required to include information on its website about how it takes sustainability factors into account in its investment decisions.
The SFDR classifies investment products into different categories.
Article 6 products do not focus on sustainability, Article 8 products promote environmental or social characteristics, and Article 9 products have sustainable investments as their objective. This last group is also referred to as “dark green.” Fair Capital Partners has classified its Fair Capital Vermogensbeheer as an Article 9 product.
We invest on behalf of our clients with the aim of making a positive contribution to the world by investing in publicly listed investments that focus on:
protecting biodiversity, human rights, and the climate as much as possible;
having a positive impact on the SDGs and/or reducing CO₂ emissions (in line with the Climate Agreement);
achieving a market-based financial investment return over the long term.
In this way, we promote sustainable progress and hope that this sustainable investment objective contributes to a more sustainable world.
All key documents regarding Fair Capital Vermogensbeheer and the SFDR can be found in:
Annex III (pre-contractual information);
Annex V (periodic information); and
Product information (Article 10 SFDR).
You can find all these documents here
Investments may be exposed to sustainability risks. A sustainability risk is “an environmental, social, or governance-related event or condition which, if it occurs, could cause an actual or potential material negative impact on the value of the investment.”
Integration of Sustainability Risks into the Investment Decision-Making Process
Fair Capital Partners integrates sustainability risks into its investment decision-making process. ASN ECD conducts an initial screening of all potential investments on behalf of Fair Capital Partners. In this screening, ASN ECD identifies and analyzes the sustainability risks associated with potential investments (see the ASN Sustainability Manual).
Fair Capital Partners then ensures that the exposure across the various investment categories follows a mandatory allocation.
Additionally, the services of Sustainalytics are used to screen (and monitor) ESG risks based on the ESG Risk Rating.
Using Sustainalytics’ screening methodology, Fair Capital Partners has set the requirement that the average score of the equity portfolio must not exceed an ESG Risk Rating of 20, which, according to Sustainalytics, corresponds to a “low risk” level.
In the bond portfolio, Fair Capital Partners primarily invests in loans issued by (semi-)government institutions. For this, analysis is conducted at the country and/or organizational level by ASN ECD.
Fair Capital Partners periodically assesses whether the portfolio continues to meet the aforementioned criteria. If an investment no longer aligns with its policy, it will be sold within a reasonable period of time.
Fair Capital Partners takes the principal adverse impacts of investment decisions on sustainability factors into account when selecting its investments. Detailed information on this can be found in Annex I, available here.
In our asset management, we explicitly take sustainability risks and negative sustainability impacts into account.
ASN Bank conducts a screening of all potential investments on our behalf. In this screening, ASN Bank identifies and analyzes the sustainability risks and adverse impacts associated with potential investments. For the methods used by ASN Bank, we refer to the ASN Sustainability Criteria Manual.
If an investment does not meet ASN Bank’s sustainability criteria, we do not invest in it.
Protecting the Climate, Biodiversity, and Human Rights
To achieve our goals, we investigate every company and government we invest in.
For this analysis, we rely on research conducted by the ASN Bank’s Sustainability Expertise Center. They screen companies and governments based on ASN Bank’s sustainability pillars, using exclusion and admission criteria.
Exclusion criteria are absolute requirements that companies, countries, and organizations must meet to be eligible for investment.
Admission criteria are relative. That means: only companies, countries, and organizations that perform better than most in their group or sector are eligible for investment.
These criteria cover areas such as climate, biodiversity, human rights, good governance, and animal welfare.
Positive Contribution to the SDGs
We also assess how companies contribute to achieving the United Nations’ Sustainable Development Goals (SDGs).
The SDGs provide a common language and set of goals for discussing sustainable and social development. They are central to a global agenda for sustainable progress. The goals aim to, by 2030, reduce poverty, tackle inequality, address climate change, and protect natural resources.
How Do We Prevent Negative Impacts?
The sustainable impact of selected investments focuses on avoiding negative effects.
We do not invest in companies that:
Produce fossil fuels or offer products/services heavily dependent on fossil fuels, such as the automotive and aviation industries.
Produce weapons (or components for weapons).
Use child labor, directly or indirectly through suppliers.
Do not respect women’s rights or labor union rights.
What Do We Invest In?
The sustainable impact of our investments focuses on creating positive effects.
We do invest in:
Companies that contribute to the energy transition.
Companies that protect and restore biodiversity.
Governments with strong performance in areas such as income distribution, anti-discrimination, and anti-corruption.
Water lily painting: Licio Passon www.liciopasson.it
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