Sustainability-related disclosures: SFDR

Integration of sustainability risks

The EU Sustainable Finance Disclosure Regulation defines sustainability risk as ESG event or condition that, if it occurs, could cause an actual or potential material negative impact on the value of the investment.

As an investment manager, Artemis is a steward of clients’ capital and acts in their interests to invest in companies which can create, preserve and enhance value. This involves the assessment of a broad range of factors which do, or could, have an impact on value, including those related to ESG drivers.

At the investment fund level, it is the responsibility of each investment team to effectively manage the sustainability risks that could impact the value of the portfolios that they manage. To achieve this, Artemis’ investment teams are supported by the Stewardship team who work them to help integrate sustainability considerations into the investment processes and further those goals through stewardship activities, including engagement. Their role is to provide insight, discuss and challenge the individual sustainability approaches of each investment team.

Each of our investment teams integrate material sustainability risks into their investment decision-making process, although individual funds may have different approaches to how, and to what extent, sustainability risks are considered depending on relevance to their investment strategy and any particular sustainability-related characteristics of the fund. We seek to assess sustainability risks alongside other types of investment risks which may be financially material, such as credit or market risks. The factors which are relevant to this assessment will vary depending on the investment strategy, asset class, geographic focus, investment holding period, portfolio positioning and construction and risk tolerance of individual funds and strategies, as well as company-specific factors. The presence of actual or potential sustainability risks does not in itself necessarily preclude investment in a company, but rather helps investment teams to assess the overall risk profile of a company as part of their investment analysis.

Visit our fund pages to learn about how we integrate investment and sustainability within our funds.