In early August 2020, Bonafide met all requirements for the European Socially Responsible Investment (SRI) Transparency Code. We may now use the Eurosif transparency logo for our Global Fish Fund. What a great reason to celebrate!
But what do Socially Responsible Investment (SRI) policies and practices mean for investors in our Global Fish Fund? We explain in greater detail below. In particular, we focus on best practice and how we advise clients on social and environmental aspects of financial products (see also here).
European SRI Transparency Code
The European SRI Transparency Code‘s roots are found in the European Transparency Guidelines unveiled in 2004, and the Transparency Code was launched in May 2008. In short, we can paraphrase the Transparency Code’s goals as follows:
Explaining Socially Responsible Investment (SRI) practices and making them transparent, thereby enabling investors to assess how well investment funds are complying.
The basic principle driving the Code is that asset manager signatories should be open and honest, while disclosing
- adequate, and
- timely information.
In turn, asset managers empower stakeholders, including investors. This additional transparency empowers investors to better understand the policies and practices followed by a fund that adheres to the SRI.
The Code focuses on SRI funds distributed publicly in Europe. It has been designed to cover a range of asset classes.
At the end of June 2016, there were
- 1,138 green, social and ethical funds domiciled in Europe, and
- a further 700 funds had pending applications with the SRI for use of the seal.
The Code has also been made a mandatory requirement by a number of national SRI labels or trade associations in Europe. Interest in the Code continues to grow and as a further step in their implementation, Eurosif (European Sustainable Investment Forum) wishes to improve their response process, the visibility of the Transparency Code, and funds’ reactions.
The Transparency Code was updated during 2018. Today it reflects the most relevant practices in Sustainable and Responsible Investment and Finance, including:
- Article 173 (Reference to Article 173 of the French TECV Act),
- Task Force on Climate-related Financial Disclosure (TCFD), and
- HLEG recommendations.
Read the full European SRI Transparency Code here.
Towards this objective, Eurosif has created a logo specific to the Transparency Code which may be used by signatories once their compliance with the Code has been confirmed by their national Sustainable Investment Forum.
Bonafide Transparency Code
To emphasise our efforts and commitment surrounding the implementation of sustainability in our investment process, we are currently working towards having all of our funds ESG certified by 2021. To that end, we want to make the Eurosif Transparency Code / Eurosif Transparenz Kodex available to you. It will provide you with additional information regarding sustainability at Bonafide and, for instance, the Global Fish Fund.
For those who are interested, more regular news updates concerning sustainability at Bonafide are now also part of our monthly Global Fish Fund reports.
Our path to sustainability
Some milestones have already been reached:
- Cooperation with ISS ESG (the responsible investment arm of Institutional Shareholder Services Inc.) to improve the rating coverage in our portfolios,
- Workforce expansion in sustainability research, and
- Revision and formalisation of our investment process.
Bonafide contributes several Sustainable Development Goals (SDGs) as part of its investment activity in the Fish & Seafood sector, most notably through its aquaculture investments.
- Supporting the preservation of marine biodiversity by significantly reducing overfishing of popular food fish and by avoiding problematic bycatch. A healthy, marine fish population, in turn, serves as an important source of food and income for the local population in impoverished countries.
- On the company side, enabling investments in modern facilities that increase productivity and reduce water use.
We are convinced that sustainability will play an even greater role in future investment decisions. Accordingly, we want to set an example in this area.
Join the conversation
- Did you already know about the Eurosif transparency code? What is your opinion about it?
- Does the topic of sustainability play a role in your investment decisions?
- Are you interested in a webinar on the topic of sustainability?