From August 2022, we will ask you about your sustainability preferences when providing you with investment and insurance advice, and asset management services. The change is due to EU regulation promoting sustainable finance.
In practice, this concerns the personal investment advice and asset management that our experts provide for you. Regarding these, we will begin by asking whether you want to define how much account is taken of environmental, social responsibility and good governance issues in the investment recommendations you receive from us.
If you answer yes, we will ask you more detailed questions to ensure that the investment fulfils your preferences. We recommend that you think about your answers to such questions in advance:
- To what extent would you like us to recommend sustainable investments to you?
- How big a share of your portfolio should be made up of sustainable investments?
- Would you like your investments to take account of harmful sustainability impacts, such as carbon emissions?
The change will not affect retail investors (individual, non-institutional investors). If you invest independently via channels such as the op.fi service or OP-mobile, you do not need to answer questions on your sustainability preferences. You do not need to take account of sustainability in any investment advice you seek – but if you want to take it into account, the related advice will be clearer than before.
The sustainability of investments will become easier to compare
The European Union’s legislative package on sustainable finance also includes the Sustainable Finance Disclosure Regulation for the finance sector. This states that mutual funds making sustainable investments will be divided into dark green, light green and other funds.
Light green funds have less stringent requirements: their investment decisions must promote environmental and social characteristics. Light green funds managed by OP are marked by a single green leaf symbol.
Dark green funds must aim for sustainable investment. To achieve dark green status, funds must fulfil strict ESG criteria. In OP, such funds are marked by two green leaf symbols.
In future, OP and other asset managers must classify their funds and state how each fund accounts for sustainability factors. This will make it easier to compare how different investment products take account of ESG factors.