Sustainable Products Classification
We certify sustainable products based on the following two criteria:
1) method of considering sustainability factors and how it is embedded into the investment decisions and
2) the degree of importance of sustainability factors in investment strategies.
Of these, products* classified into "positive screening," "ESG-themed," and "impact" are defined as "ESG products". In particular, we will monitor the actual operation of "ESG products" to ensure that there are no discrepancies with the definition of classification based on the certification standards, while we strive to enhance information disclosure so that fund beneficiaries and customers can better understand how we incorporate ESG elements into our investment decision process.
*Note: These products may/may not be promoted as having ESG factors or objectives under the EU Sustainable Finance Disclosure Regulation (SFDR).
| Classifications | Definitions | ESG products |
|---|---|---|
| Standard |
Employ a company-wide stewardship initiatives and negative screening
|
– |
| Integration |
Consider sustainability elements and incorporate ESG evaluation into investment decision process
|
– |
| Integration plus |
Recognize sustainability as one of the key sources of excess returns and use the ESG evaluation quantitatively and systematically
|
– |
| Engagement plus |
Incorporate fund managers' active engagement in dialogue on ESG themes that contribute to enhancing corporate value
|
– |
| Positive screening |
Incorporate specific quantitative screening criteria to create investable universe with companies with good ESG practices
|
✔ |
| ESG themed investing |
Set specific sustainability issues and themes and invest in companies that contribute to resolving such issues
|
✔ |
| Impact investing |
Handpick companies that provide environmental or social impacts through their businesses while pursuing investment return objectives
|
✔ |
