COMMISSION DELEGATED REGULATION (EU) 2022/1288
of 6 April 2022
supplementing Regulation (EU) 2019/2088 of the European Parliament and of the Council with regard to regulatory technical standards specifying the details of the content and presentation of the information in relation to the principle of ‘do no significant harm’, specifying the content, methodologies and presentation of information in relation to sustainability indicators and adverse sustainability impacts, and the content and presentation of the information in relation to the promotion of environmental or social characteristics and sustainable investment objectives in pre-contractual documents, on websites and in periodic reports
(Text with EEA relevance)
CHAPTER I
DEFINITIONS AND GENERAL PROVISIONS
Article 1
Definitions
Article 2
General principles for the presentation of information
Article 3
Reference benchmarks with basket indexes
CHAPTER II
TRANSPARENCY ABOUT ADVERSE IMPACTS ON SUSTAINABILITY FACTORS
SECTION 1
Financial market participants
Article 4
Statement by financial market participants that they do consider principal adverse impacts of their investment decisions on sustainability factors
Article 5
Summary section
Article 6
Description of the principal adverse impacts of investment decisions on sustainability factors
Article 7
Description of policies to identify and prioritise principal adverse impacts of investment decisions on sustainability factors
Article 8
Engagement policies section
Article 9
References to international standards section
Article 10
Historical comparison
SECTION 2
Financial advisers
Article 11
Statement by financial advisers that they do consider in their insurance or investment advice principal adverse impacts on sustainability factors
SECTION 3
Statement by financial market participants that they do not consider adverse impacts of investment decisions on sustainability factors, and statement by financial advisers that they do not consider adverse impacts of investment decisions on sustainability factors in their investment or insurance advice
Article 12
Statement by financial market participants that they do not consider adverse impacts of their investments decisions on sustainability factors
Article 13
Statement by financial advisers that they do not consider adverse impacts of investment decisions on sustainability factors in their investment or insurance advice
CHAPTER III
PRE-CONTRACTUAL PRODUCT DISCLOSURE
SECTION 1
Promotion of environmental or social characteristics
Article 14
Presentation by financial market participants of the pre-contractual information to be disclosed pursuant to Article 8(1), (2) and (2a) of Regulation (EU) 2019/2088
Article 15
Sustainable investment information in the asset allocation section for financial products that promote environmental characteristics
Article 16
Sustainable investment information in the asset allocation section for financial products that promote social characteristics
Article 17
Calculation of the degree to which investments are in environmentally sustainable economic activities
SECTION 2
Sustainable investment as objective
Article 18
Presentation by financial market participants of pre-contractual information for financial products to be disclosed pursuant to Article 9, paragraphs 1 to 4a, of Regulation (EU) 2019/2088
Article 19
Sustainable investment information for financial products with the objective of sustainable investment
SECTION 3
Financial products with investment options
Article 20
Financial products with one or more underlying investment options that qualify those financial products as financial products that promote environmental or social characteristics
Article 21
Financial products with underlying investment options that all have sustainable investment as their objective
Article 22
Information on underlying investment options that have sustainable investment as their objective and are not themselves financial products
CHAPTER IV
WEBSITE PRODUCT DISCLOSURE
Article 23
Website section for the disclosure of sustainability-related information about financial products
SECTION 1
Website product disclosure for financial products that promote environmental or social characteristics
Article 24
Sections of website product disclosure for financial products that promote environmental or social characteristics
Article 25
Website section ‘Summary’ for financial products that promote environmental or social characteristics
Article 26
Website section ‘No sustainable investment objective’ for financial products that promote environmental or social characteristics
Article 27
Website section ‘Environmental or social characteristics of the financial product’ for financial products that promote environmental or social characteristics
Article 28
Website section ‘Investment strategy’ for financial products that promote environmental or social characteristics
Article 29
Website section ‘Proportion of investments’ for financial products that promote environmental or social characteristics
Article 30
Website section ‘Monitoring of environmental or social characteristics’ for financial products that promote environmental or social characteristics
Article 31
Website section ‘Methodologies for environmental or social characteristics’ for financial products that promote environmental or social characteristics
Article 32
Website section ‘Data sources and processing’ for financial products that promote environmental or social characteristics
Article 33
Website section ‘Limitations to methodologies and data’ for financial products that promote environmental or social characteristics
Article 34
Website section ‘Due diligence’ for financial products that promote environmental or social characteristics
Article 35
Website section ‘Engagement policies’ for financial products that promote environmental or social characteristics
Article 36
Website section ‘Designated reference benchmark’ for financial products that promote environmental or social characteristics
SECTION 2
Website product disclosure for financial products that have sustainable investments as their objective
Article 37
Website product disclosure for financial products that have sustainable investments as their objective
Article 38
Website section ‘Summary’ for financial products that have sustainable investment as their objective
Article 39
Website section ‘No significant harm to the sustainable investment objective’ for financial products that have sustainable investment as their objective
Article 40
Website section ‘Sustainable investment objective of the financial product’ for financial products that have sustainable investment as their objective
Article 41
Website section ‘Investment strategy’ for financial products that have sustainable investment as their objective
Article 42
Website section ‘Proportion of investments’ for financial products that have sustainable investment as their objective
Article 43
Website section ‘Monitoring of the sustainable investment objective’ for financial products that have sustainable investment as their objective
Article 44
Website section ‘Methodologies’ for financial products that have sustainable investment as their objective
Article 45
Website section ‘Data sources and processing’ for financial products that have sustainable investment as their objective
Article 46
Website section ‘Limitation to methodologies and data’ for financial products that have sustainable investment as their objective
Article 47
Website section ‘Due diligence’ for financial products that have sustainable investment as their objective
Article 48
Website section ‘Engagement policies’ for financial products that have sustainable investment as their objective
Article 49
Website section ‘Attainment of the sustainable investment objective’ for financial products that have sustainable investment as their objective
CHAPTER V
PRODUCT DISCLOSURE IN PERIODIC REPORTS
SECTION 1
Promotion of environmental or social characteristics
Article 50
Presentation and content requirements for periodic reports for financial products that promote environmental or social characteristics
Article 51
Attainment of the environmental or social characteristics promoted by the financial products
Article 52
Top investments for financial products that promote environmental or social characteristics
Article 53
Asset allocation by financial products that promote environmental or social characteristics
Article 54
Proportion of investments in different economic sectors and sub-sectors
Article 55
Information on investments in environmentally sustainable economic activities for financial products that promote environmental characteristics
Article 56
Information for financial products that promote social characteristics
Article 57
Sustainable performance of the index designated as a benchmark for environmental or social characteristics
SECTION 2
Sustainable investment as objective
Article 58
Presentation and content requirements for periodic reports for financial products that have sustainable investment as their objective
Article 59
Attainment of the sustainable investment objective of the financial product
Article 60
Top investments for financial products that have sustainable investment as their objective
Article 61
Proportion of sustainability-related investments for financial products that have sustainable investment as their objective
Article 62
Information on sustainable investments for financial products with the objective of sustainable investment
Article 63
Sustainable performance of the index designated as a benchmark for the sustainable objective
SECTION 3
Historical comparisons for periodic reports
Article 64
Historical comparisons for periodic reports
SECTION 4
Financial products with investment options
Article 65
Financial products with one or more underlying investment options that qualify those financial products as financial products that promote environmental or social characteristics
Article 66
Financial products with underlying investment options that all have sustainable investment as their objectives
Article 67
Information on underlying investment options that have sustainable investment as their objective and are not themselves financial products
CHAPTER VI
FINAL PROVISIONS
Article 68
Entry into force and application
ANNEX I
Template principal adverse sustainability impacts statement
Financial market participant [Name and, where available, LEI] |
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Summary [Name and, where available, LEI] considers principal adverse impacts of its investment decisions on sustainability factors. The present statement is the consolidated statement on principal adverse impacts on sustainability factors of [name of the financial market participant] [where applicable, insert ‘and its subsidiaries, namely [list the subsidiaries included]’]. This statement on principal adverse impacts on sustainability factors covers the reference period from [insert ‘1 January’ or the date on which principal adverse impacts were first considered] to 31 December [year n]. [Summary referred to in Article 5 provided in the languages referred to in paragraph 1 thereof] |
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Description of the principal adverse impacts on sustainability factors [Information referred to in Article 7 in the format set out below] |
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Indicators applicable to investments in investee companies |
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Adverse sustainability indicator |
Metric |
Impact [year n] |
Impact [year n-1] |
Explanation |
Actions taken, and actions planned and targets set for the next reference period |
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CLIMATE AND OTHER ENVIRONMENT-RELATED INDICATORS |
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Greenhouse gas emissions |
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Scope 1 GHG emissions |
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Scope 2 GHG emissions |
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Scope 3 GHG emissions |
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Total GHG emissions |
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Carbon footprint |
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GHG intensity of investee companies |
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Share of investments in companies active in the fossil fuel sector |
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Share of non-renewable energy consumption and non-renewable energy production of investee companies from non-renewable energy sources compared to renewable energy sources, expressed as a percentage of total energy sources |
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Energy consumption in GWh per million EUR of revenue of investee companies, per high impact climate sector |
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Biodiversity |
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Share of investments in investee companies with sites/operations located in or near to biodiversity-sensitive areas where activities of those investee companies negatively affect those areas |
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Water |
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Tonnes of emissions to water generated by investee companies per million EUR invested, expressed as a weighted average |
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Waste |
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Tonnes of hazardous waste and radioactive waste generated by investee companies per million EUR invested, expressed as a weighted average |
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INDICATORS FOR SOCIAL AND EMPLOYEE, RESPECT FOR HUMAN RIGHTS, ANTI-CORRUPTION AND ANTI-BRIBERY MATTERS |
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Social and employee matters |
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Share of investments in investee companies that have been involved in violations of the UNGC principles or OECD Guidelines for Multinational Enterprises |
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Share of investments in investee companies without policies to monitor compliance with the UNGC principles or OECD Guidelines for Multinational Enterprises or grievance/complaints handling mechanisms to address violations of the UNGC principles or OECD Guidelines for Multinational Enterprises |
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Average unadjusted gender pay gap of investee companies |
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Average ratio of female to male board members in investee companies, expressed as a percentage of all board members |
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Share of investments in investee companies involved in the manufacture or selling of controversial weapons |
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Indicators applicable to investments in sovereigns and supranationals |
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Adverse sustainability indicator |
Metric |
Impact [year n] |
Impact [year n-1] |
Explanation |
Actions taken, and actions planned and targets set for the next reference period |
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Environmental |
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GHG intensity of investee countries |
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Social |
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Number of investee countries subject to social violations (absolute number and relative number divided by all investee countries), as referred to in international treaties and conventions, United Nations principles and, where applicable, national law |
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Indicators applicable to investments in real estate assets |
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Adverse sustainability indicator |
Metric |
Impact [year n] |
Impact [year n-1] |
Explanation |
Actions taken, and actions planned and targets set for the next reference period |
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Fossil fuels |
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Share of investments in real estate assets involved in the extraction, storage, transport or manufacture of fossil fuels |
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Energy efficiency |
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Share of investments in energy-inefficient real estate assets |
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Other indicators for principal adverse impacts on sustainability factors |
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[Information on the principal adverse impacts on sustainability factors referred to in Article 6(1), point (a) in the format in Table 2] |
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[Information on the principal adverse impacts on sustainability factors referred to in Article 6(1), point (b), in the format in Table 3] |
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[Information on any other adverse impacts on sustainability factors used to identify and assess additional principal adverse impacts on a sustainability factor referred to in Article 6(1), point (c), in the format in Table 2 or Table 3] |
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Description of policies to identify and prioritise principal adverse impacts on sustainability factors [Information referred to in Article 7] |
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Engagement policies [Information referred to in Article 8] |
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References to international standards [Information referred to in Article 9] |
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Historical comparison [Information referred to in Article 10] |
Adverse sustainability impact |
Adverse impact on sustainability factors (qualitative or quantitative) |
Metric |
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Indicators applicable to investments in investee companies |
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CLIMATE AND OTHER ENVIRONMENT-RELATED INDICATORS |
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Emissions |
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Tonnes of inorganic pollutants equivalent per million EUR invested, expressed as a weighted average |
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Tonnes of air pollutants equivalent per million EUR invested, expressed as a weighted average |
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Tonnes of ozone-depleting substances equivalent per million EUR invested, expressed as a weighted average |
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Share of investments in investee companies without carbon emission reduction initiatives aimed at aligning with the Paris Agreement |
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Energy performance |
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Share of energy from non-renewable sources used by investee companies broken down by each non-renewable energy source |
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Water, waste and material emissions |
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Share of investments in investee companies without water management policies |
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Share of investments in investee companies with sites located in areas of high water stress without a water management policy |
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Share of investments in investee companies the activities of which fall under Division 20.2 of Annex I to Regulation (EC) No 1893/2006 |
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Share of investments in investee companies the activities of which cause land degradation, desertification or soil sealing |
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Share of investments in investee companies without sustainable land/agriculture practices or policies |
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Share of investments in investee companies without sustainable oceans/seas practices or policies |
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Tonnes of non-recycled waste generated by investee companies per million EUR invested, expressed as a weighted average |
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Share of investments in companies without a policy to address deforestation |
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Green securities |
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Share of securities in investments not issued under Union legislation on environmentally sustainable bonds |
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Indicators applicable to investments in sovereigns and supranationals |
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Green securities |
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Share of bonds not issued under Union legislation on environmentally sustainable bonds |
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Indicators applicable to investments in real estate assets |
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Greenhouse gas emissions |
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Scope 1 GHG emissions generated by real estate assets |
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Scope 2 GHG emissions generated by real estate assets |
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Scope 3 GHG emissions generated by real estate assets |
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Total GHG emissions generated by real estate assets |
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Energy consumption |
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Energy consumption in GWh of owned real estate assets per square meter |
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Waste |
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Share of real estate assets not equipped with facilities for waste sorting and not covered by a waste recovery or recycling contract |
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Resource consumption |
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Share of raw building materials (excluding recovered, recycled and biosourced) compared to the total weight of building materials used in new construction and major renovations |
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Biodiversity |
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Share of non-vegetated surface area (surfaces that have not been vegetated in ground, as well as on roofs, terraces and walls) compared to the total surface area of the plots of all assets |
INDICATORS FOR SOCIAL AND EMPLOYEE, RESPECT FOR HUMAN RIGHTS, ANTI-CORRUPTION AND ANTI-BRIBERY MATTERS |
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Adverse sustainability impact |
Adverse impact on sustainability factors (qualitative or quantitative) |
Metric |
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Indicators applicable to investments in investee companies |
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Social and employee matters |
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Share of investments in investee companies without a workplace accident prevention policy |
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Rate of accidents in investee companies expressed as a weighted average |
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Number of workdays lost to injuries, accidents, fatalities or illness of investee companies expressed as a weighted average |
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Share of investments in investee companies without any supplier code of conduct (against unsafe working conditions, precarious work, child labour and forced labour) |
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Share of investments in investee companies without any grievance/complaints handling mechanism related to employee matters |
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Share of investments in entities without policies on the protection of whistleblowers |
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Average ratio within investee companies of the annual total compensation for the highest compensated individual to the median annual total compensation for all employees (excluding the highest-compensated individual) |
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Human Rights |
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Share of investments in entities without a human rights policy |
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Share of investments in entities without a due diligence process to identify, prevent, mitigate and address adverse human rights impacts |
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Share of investments in investee companies without policies against trafficking in human beings |
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Share of investments in investee companies exposed to operations and suppliers at significant risk of incidents of child labour in terms of geographic areas or type of operation |
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Share of the investments in investee companies exposed to operations and suppliers at significant risk of incidents of forced or compulsory labour in terms in terms of geographic areas and/or the type of operation |
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Number of cases of severe human rights issues and incidents connected to investee companies on a weighted average basis |
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Anti-corruption and anti-bribery |
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Share of investments in entities without policies on anti-corruption and anti-bribery consistent with the United Nations Convention against Corruption |
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Share of investments in investee companies with identified insufficiencies in actions taken to address breaches in procedures and standards of anti-corruption and anti-bribery |
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Numbers of convictions and amount of fines for violations of anti-corruption and anti-bribery laws by investee companies |
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Indicators applicable to investments in sovereigns and supranationals |
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Social |
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The distribution of income and economic inequality among the participants in a particular economy including a quantitative indicator explained in the explanation column |
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Measuring the extent to which political and civil society organisations can operate freely including a quantitative indicator explained in the explanation column |
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Human rights |
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Measure of the average human right performance of investee countries using a quantitative indicator explained in the explanation column |
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Governance |
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Measure of the perceived level of public sector corruption using a quantitative indicator explained in the explanation column |
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Investments in jurisdictions on the EU list of non-cooperative jurisdictions for tax purposes |
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Measure of the likelihood that the current regime will be overthrown by the use of force using a quantitative indicator explained in the explanation column |
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Measure of the level of corruption, lack of fundamental rights, and the deficiencies in civil and criminal justice using a quantitative indicator explained in the explanation column |