Transparency on sustainability policies, on the potential negative impacts and on the remuneration policies pursuant to articles 3, 4 and 5 of the Regulation (EU) 2019/2088 Of the European Parliament and of the Council of 27 November 2019 on sustainability‐related disclosures in the financial services sector
The European legislator recently initiated a programme aimed at setting up a regulatory framework in relation to sustenaibility in the financial services sector. In particular, Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability‐related disclosures in the financial services sector ("SFDR") entered into force on 10 March 2021. The SFDR provides, among others, for certain transparency obligations in the matter of sustainability risks through publication on financial advisors' websites of certain information about their policies on the integration of sustainability risks in their investment advice.
In such context, KNG Securities adopts an ESG (Environmental, Social, Governance) Policy in order to implement a business model of sustainable development in light of the growing importance that environmental and social impacts on the economic stability have in all the decision-making processes even in the financial services sector.
KNG in performing the service of investment advice vis-à-vis its EU clients shall take into consideration, inter alia, potential sustainability risks (i.e. pursuant to article 2 of SFDR, any environmental, social or governance event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the investment) within its investment advices. In particular, KNG provides specific information and evidences to its clients on the existence of Sustainability Factors and ESG Features in relation to specific securities.
"Sustainability factors" means, pursuant to article 2 of SFDR, environmental, social and employee matters, respect for human rights, anti‐corruption and anti‐bribery matters.
"ESG Features" means any element and evaluation issue concerning the non-financial aspect of an investment (i.e. environmental and social aspects) which are useful in order to assess the sustainability of an investment.
Transparency of adverse sustainability impacts at entity level
Save for future different disclosures and information that KNG shall provide on this website, as of today KNG Securities adopts an "explain" approach and it does not take into consideration the potential adverse sustainability impacts of the investment advices that KNG performs. The main reason is the lack of specific information and available data in order to perform an appropriate assessment of such potential adverse impacts.
Therefore, KNG intends to carry out any evaluation as to the adverse sustainability impacts on the investment decision on the Sustainability Factors once major information, data and parameters shall be provided by competent authorities and bodies after 1 January 2022.
KNG's remuneration policies include specific information on how such policies are consistent with the integration of sustainability risks and pursuant to article 5 of SFDR. In such respect, KNG provides the following information: