FIDA ESG Rating is the top Italian ratings agency for assets managed in the field of sustainability (website here), created by FIDA, an independent company specialising in data analysis for investment products.
The Etica System funds were analysed using a special rating system owned by FIDA, according to European regulations on sustainability in the financial services sector (Regulation (EU) 2019/2088 or SFDR).
FIDA ESG Rating: the results
The Etica System funds analysed[1] received positive and excellent ratings from FIDA, which assigned the maximum ESG Rating of 5.
The aim of the ESG rating (where ESG stands for environmental, social and governance) is to help make the ESG characteristics of collective investment funds more standardised, comparable and transparent, thus reducing the risk of greenwashing, a labelling practice with a misleading image of sustainability.
The FIDA method
Numerous factors are considered before determining and assigning ratings to collective investment funds. FIDA’s sustainability assessment of asset management instruments uses a composite system which includes various types of analysis:
Asset management company: organisational procedures, policies adopted to ensure investment decisions that take into account sustainability as well as the potential ability to make investment decisions that take into account sustainability (corporate social responsibility) are assessed.
Classification of investment policies, i.e. the level of sustainability of the investment policy according to the SFDR: the degree of sustainability of the investment policy and the objectives are analysed according to European regulations.
Transparency: the willingness of the manager to provide complete and accurate information about the products and their composition is analysed; analysing this aspect contributes to the ESG qualification of the manager and its products, in the interests of stakeholders and investors.
Portfolio composition: the securities that make up the fund’s portfolio are assessed for their degree of sustainability to check the real implementation of the ESG mission using third-party databases that use artificial intelligence to continuously analyse an extremely wide range of information sources. A distinctive element at this stage is the almost exclusively non-corporate origin of the information taken into consideration.
Following the above assessments, a score from 0 to 100 is assigned to the asset management products, which in turn determines a rating between 1 and 5.
Etica Funds, an entire lifetime focused on ESG
Etica Funds is the only Italian asset management company to exclusively offer sustainable and responsible open-ended collective investment funds.
It has always been dedicated solely to ethical and sustainable finance, with a strong drive towards environmental sustainability, social and governance (ESG) issues. With a long-term outlook, Etica Funds researches the impact on the value of investments and the planet. As stated by its Articles of Association, the company “aims to represent the values of ethical finance on the financial markets and to raise public awareness on socially responsible investments and corporate social responsibility”.
All Etica Funds funds are classified as products that pursue an explicit sustainability goal pursuant to Article 9 of Regulation (EU) 2019/2088 or as products that promote, among other things, environmental and/or social aims in compliance with good governance practices pursuant to Article 8 of Regulation (EU) 2019/2088.
[1] For the Valori Responsabili line, the entire range is assessed, for the Futuri Responsabili line, please refer to Etica Impatto Clima.
The data refer to September 2022.
Disclaimer
Marketing communication from Etica Sgr S.p.A.
Information from the sources indicated in this document has been deemed to be reliable and in good faith by Etica, which provides no guarantee regarding its accuracy or reliability and declines any responsibility for any damage or loss that may result from the use of or reliance on this information. Investors should conclude an investment transaction only after having fully understood their overall characteristics and degree of exposure to related risks by carefully reading the Prospectus and the key information document (KID), which, together with information on sustainability pursuant to Regulation (EU) 2019/2088, can be found at www.eticasgr.com. The investment specifically concerns the acquisition of shares in Etica System funds and involves risks related to possible changes in the share values, which are in turn affected by fluctuations in the value of the financial instruments in which the funds’ resources are invested. Investing in Etica System funds offers no guarantee of return and does not ensure repayment of initially invested capital. Any future returns are subject to taxation, which is based on the personal situation of each investor and may change in the future. The investment goals, situation and financial needs of potential recipients have not been taken into account in the drafting of this communication. It can therefore in no way be interpreted as investment advice. The recipients of this communication assume full and absolute responsibility for the use of the information it contains, as well as for any investment decisions made on the basis thereof, since any use of the information as support for investment decisions is not permitted and is at the investor’s own risk.
