Without considering the negative impacts on sustainability
On 27 November 2019, the European Parliament and the Council of the European Union adopted Regulation (EU) 2019/2088 on disclosures related to sustainability in the financial services sector (SFDR Regulation).
Sustainable development has become a key driver of development policies globally in recent years. It is reflected through strategies
Regulation (EU) 2019/2088 of the European Parliament and of the Council on disclosures related to sustainability in the financial services sector emphasizes the transparency of adverse effects on the sustainability of continuous economic progress without harming the environment, with social responsibility and good governance. Sustainable development is based on the so-called. ESG principles:
  • E- "environment": environment. Production and consumption have a major impact on climate change, resource depletion, waste, pollution, deforestation and biodiversity.
  • S - “society”: society. The social component includes the culture of the company, business policies that determine working conditions, labor rights and diversity, as well as the impact on the community in which they operate.
  • G - “governance”: corporate governance. This component refers to the management of companies through the board of directors, supervision of the company's management, as well as attitudes towards shareholders. Governance can serve as a control mechanism against bribery and corruption, taxes, enforcement fees, shareholder voting opportunities, and internal control.
at the subject level.
In accordance with Article 4 of the said Regulation, OTP Invest (hereinafter: the Company) decided not to take into account the main adverse effects of investment decisions on sustainability factors. Consideration of such impacts requires a review of internal policies and procedures, possibly the IT development required for proper implementation, all in a relatively short period of time. It should be noted that we are part of a larger OTP group with which it is also necessary to harmonize these regulations. However, the Company's intention is to start taking into account the main adverse effects of investment decisions on sustainability factors by the end of 2021 at the latest and to include them in its policies.
Information on policies to integrate sustainability risk into the decision-making process
Pursuant to Article 3, paragraphs 1 and 2 of the said Regulation, the Company declares that as a participant in financial markets and as a financial advisor it has not included sustainability risks in its investment decision-making process and has not changed the Investment Process Procedures accordingly. The Company does not currently consider this risk relevant and does not assess the likely effects of sustainability risk on the return of funds under management, but recognizes it as a separate risk and has included it in the Risk Management Policy.
Information on the inclusion of sustainability risk in remuneration policies
In its remuneration policy, the Company commented on Article 5 of the SFDR Regulation, which requires transparency of remuneration policies regarding the inclusion of sustainability risk. The Company states that the remuneration policy does not include sustainability risk, and there are no qualitative or quantitative criteria set so as not to encourage the assumption of risks related to sustainability risk.