SFDR at the fund level
On the basis of the SFDR, financial market participants are required to indicate how they handle sustainability risks and to detail the consequences of this approach. In addition, the regulation contains transparency requirements at fund level.
The regulation distinguishes between:
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funds that are not promoted as sustainable (grey);
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funds that promote environmental or societal characteristics (light-green);
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funds with sustainable investments as their objective (dark-green)
The Amvest Living & Care Fund qualifies as a light-green fund which promotes the following environmental and social characteristics:
Environmental characteristics
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1. Investing in energy efficient future proof properties.
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2. Realizing a reduction of CO2 emissions.
Social characteristics
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3. Ensuring high quality living environment.
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4. Focus on the provision of healthcare related real estate for i) elderly people who have a significant care indication due to somatic and/or psychogeriatric limitations and can no longer live independently (verpleeghuiszorg); ii) people who have physical or mental disabilities and cannot live independently (gehandicaptenzorg), iii) people who have a light to moderate demand for care, regardless of whether they are able to live independently and iv) elderly people who need various levels of medical or personal care (assisted living).
These characteristics are part of the fund’s strategy and the individual aspects and are reflected in Key Performance Indicators (KPIs). These KPIs are defined and measured at fund level. A target is set for each KPI that is measured and reported. The KPIs and targets are evaluated annually and adjusted if necessary.
KPIs defined and measured for these characteristics are:
Environmental characteristics
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1. Composition of the portfolio by energy labels.
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2. Scope 1, 2 and 3 CO2 emissions of the properties.
Social characteristics
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3. Annual tenant satisfaction score on the accommodation aspect.
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4. Composition of the portfolio in the four health care segments.
For more information on the KPIs defined, the results of the past year, the data sources and screening criteria, please refer to the Annual Sustainability Report of the Amvest Living & Care Fund and specifically for SFDR to attached Sustainability related disclosures.
The Amvest Living & Care Fund qualifies as an ‘article 8’ product under the SFDR and, as such, promotes Environmental/Social (E/S) characteristics. Whilst it does not have sustainable investment as its objective, it has a proportion of 99% in sustainable investments with an environmental objective in economic activities that do not qualify as environmentally sustainable under the EU Taxonomy. All these investments also qualify as investments in sustainable investments with a social objective.
Results 2022
Periodic reporting on compliance to ecological and/or social characteristics is included in our annex. More information on SFDR and results related to our sustainable investment policies are included on our website where we also annually publish the Statement on principal adverse impacts of investment decisions on sustainability factors (PAI statement). This statement contains our policies related to determination and prioritizing the most important adverse impacts on sustainability and a description of the most important adverse effects including related data sources and processing.
KPI’s relevant to SFDR are included throughout our annual reporting and contain limited assurance by KPMG. Please refer to annex for complete set of assured KPI’s and to page 59 for the limited assurance report by KPMG.
Outlook 2023
In order to comply with the expectations of our investors, AFM and other regulators in relation to sustainability we will report on ESG aspects promoted by the fund and on aspects that may cause negative impact on sustainability.