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.
- M&G Securities Limited does not consider adverse impacts of sustainability decisions on sustainability factors at entity level. This is because M&G Securities Limited manages funds that are not available within the EU that do not consider principal adverse impact (PAI) indicators and therefore M&G Securities Limited does not collect the data to aggregate PAI indicators across its fund range.
- M&G (Guernsey) Limited does not consider adverse impacts of sustainability decisions on sustainability factors at entity level. This is because M&G (Guernsey) Limited manages funds that are not available within the EU that do not consider principal adverse impact (PAI) indicators and therefore M&G (Guernsey) Limited does not have the available data to aggregate PAI indicators across the fund range. The M&G Secured Property Income Fund and the M&G Secured Lease Income Fund, for which M&G (Guernsey) Limited acts as Manager, do consider PAI indicators at a fund level and report this in their respective annual periodic disclosures in line with the SFDR.
- 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 is sustainability risk integrated in investment decision making?
We consider the sustainability risks of investments by looking at environmental, social and governance (ESG) factors that could have a material financial impact. There are different levels of sustainability risk consideration and subsequent impact on investments, depending on the type of asset class, the market conditions, and individual sustainability risks.
Our ESG integration approach includes the consideration of sustainability risk as well as financially material opportunities arising from the consideration of ESG factors. The ESG Integration and Sustainable Investing Policy (see below) sets out the details of our approach.
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.