Eurizon Capital SGR

Eurizon offers a diversified range of products across asset classes, with 157 funds, as at 1st July 2021, that, among other features, promote environmental or social themes, or have sustainable investment goals as per articles 8 and 9 of the new SFDR Regulation, with around 100 billion euros in assets under management, accounting for almost 45% of the managed funds’ total assets.

Eurizon has adopted a new Sustainability Policy, available on our website, that sets out specific selection and monitoring methodologies of the financial instruments aimed at integrating the sustainability risks inside the investment process of the assets under management, in line with the UN PRI Principle No 1 and the obligations of  Regulation (EU) 2019/2088 (“SFDR”).  

Specifically, Eurizon believes that companies implementing high standards at social, environmental and corporate governance level are able to generate sustainable performances over the long term and adopts the following ESG/SRI strategies:

• SRI exclusion/limitation (known as “SRI Binding screening”): issuers operating in sectors deemed not to be “socially responsible” are excluded/restricted from the Investment Universe of the assets under management
  • issuers operating in sectors deemed not to be “socially responsible” are those companies characterized by a clear direct involvement in the manufacture of unconventional weapons (Landmines, Cluster bombs, Nuclear weapons, Depleted uranium, Biological weapons, Chemical weapons, Invisible cluster munitions, Blinding Lasers, Incendiary weapons, White phosphorus) or in the thermal coal sector

• ESG exclusion/limitation (known as “ESG Binding screening”): “critical” issuers for which an escalation process is initiated which may result in limitation or exclusion from the Investment Universe of the assets under management
  • “critical” issuers are those companies with the highest exposure to environmental, social and corporate governance risks, i.e. with a lower ESG sustainability rating level (equal to “CCC” assigned by the specialised info-provider “MSCI ESG Research”) in the equity and bond investment universe

• Integration of ESG factors (known as “ESG integration”): integration of ESG factors in the analysis, selection and composition of the managed portfolios and aims to build a portfolio with a higher average ESG score than that of its investment universe and that respects good governance practices.
  • This strategy for example is applicable to Ethical funds as well as thematic investments, and generally applies to all funds classified as Article 8 under SFDR

• Carbon footprint: methods to integrate carbon dioxide (CO2) footprint measurements in portfolio construction and aims to build a portfolio with a lower CO2 footprint than that of its investment universe

• Active ownership (known as “Engagement”): promotion of a proactive interaction with the issuing companies, both by exercising the rights to attend and vote and by being proactive with the investee companies by encouraging an effective communication with the management of the companies.  

Eurizon publishes a Global Impact Report on a yearly basis – the latest 2020 release is available on the website.  Focussing on sustainable and responsible investments, the report contains an analysis of the impacts generated both in terms of contribution to the UN Sustainable Development Goals and in terms of specific impact metrics.   In addition, since 2018 Eurizon publishes its Green Bonds Impact Report thar describes impacts achieved by Eurizon Fund – Absolute Green Bonds.