Sustainable Finance Disclosure Regulation
The Sustainable Finance Disclosure Regulation (SFDR) is a European Union (EU) regulation that came into force on the 12 July 2020, as part of the EU Sustainable Finance Action Plan led by the European Commission.
SFDR was designed to ensure consumers and investors are fully informed, via sustainability disclosures, about the ESG credentials of funds and their investment managers, prior to and throughout the investment period. The regulation aims to improve transparency in the market for sustainable investment products through consistent templated disclosure requirements.
What disclosures are M&G Financial Market Participants required to provide?
The M&G entities in scope of SFDR are M&G Luxembourg S.A (M&G Lux) and Prudential International Assurance Plc (PIA). They will provide disclosures at:
- Entity level – an annual statement disclosing how our EU registered Financial Market Participants consider principal adverse impacts of their investment decisions on sustainability factors. Please find these reports below.
- Product or fund level – pre-contractual, website and periodic reporting disclosures are required for products that promote environmental and/or social characteristics, or have a sustainable investment objective. These disclosures providing sustainability-related information on products can be found on the respective product or fund level webpages alongside standard fund literature. Please find these via the webpages below.
mandg.com/country-specific-fund-literature
The entity and product or fund level SFDR reports have been prepared by M&G in line with the recommended disclosures in the SFDR annexes published in April 2022 for Regulation (EU) 2022/1288.
What disclosures are M&G Financial Advisers required to provide?
The M&G entities in scope of the Financial Adviser SFDR Statement are M&G Luxembourg S.A (M&G Lux) and Prudential Polska sp. z.o.o (Pru Polska).
For information on whether and how these Financial Advisers consider principal adverse impacts in their investment or insurance advice, please refer to the documents or webpages listed below.
For the Prudential Polska statement on principal adverse impacts of insurance advice on sustainability factors please go to: pru.pl/dokumenty-ogolne
How do we manage sustainability risk?
As a responsible investor we consider the sustainability risks of investments by looking at environmental, social and governance (ESG) factors that could have a material financial impact. We then incorporate these factors into our risk management framework. There are different levels of sustainability risk consideration and subsequent impact on investments, depending on the market conditions, and individual sustainability risks.
Our financial advisers offer clients investment solutions that consider sustainability risks through assessing the likely negative impact of ESG factors on an investment.
Our annual Chief Risk and Resilience Officer’s Risk & Compliance Report will consider the effectiveness of sustainability risk management in investment decisions and advice. We will monitor how well we’ve applied the relevant principles and policies, and will report to the Remuneration Committee as part of this process. If we don’t meet the standards of our principles and policies, this will be reflected in our remuneration outcomes – in line with our 2021 M&G Remuneration Policy.
What additional publications provide more information on sustainability?
M&G plc, incorporated and registered in England and Wales. Registered office: 10 Fenchurch Avenue, London EC3M 5AG. Registered number 11444019. M&G plc is a holding company, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority.
M&G plc is a company incorporated and with its principal place of business in England, and its affiliated companies constitute a leading savings and investments business. M&G plc is the direct parent company of The Prudential Assurance Company Limited. The Prudential Assurance Company Limited is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in the United Kingdom.