The following information is provided in order to meet the requirements stated in regulation (EU) 2019/2088 of the European Parliament and of the Council on sustainability-related disclosures in the financial services sector (“SFDR”).
Integration of sustainability risks in the investment decision-making process
Since Lysa invests in funds, and not directly in individual companies, Lysa’s investment decision-making process is about deciding which funds should be included in the portfolios offered to its customers. One part of the decision-making process is to evaluate different types of risks and its potential impact on the value of the investment. One type of risk which is evaluated during this process is sustainability risks. A sustainability risk is an 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.
Lysa evaluates sustainability risks of an investment by evaluating how the relevant fund and the management company integrates sustainability risks in their investment decision-making process. Any identified sustainability risks are, however, valued in the same way as other identified risks when Lysa makes an investment decision. The reason for that is that Lysa strives to provide portfolios with maximum diversification and if special consideration is given to sustainability risks, the portfolio will be less diversified. As a result of not giving special consideration to sustainability risks, the realised return can be both higher and lower over time.
Consideration of adverse sustainability impacts
Lysa has chosen not to consider principal adverse impacts of its investment decisions on sustainability factors. Lysa has made this choice since Lysa currently does not have access to reliable and relevant sustainability information from underlying funds and this prevents Lysa from measuring the principal adverse impacts of its investments decisions on sustainability factors in such a way that the mandatory reporting obligation that follows from such consideration can be fulfilled.
If Lysa gets access to reliable and relevant sustainability information in the future this will be reconsidered.
Lysa’s remuneration policy and its consistency with the integration of sustainability risks
As Lysa only pays remuneration that is based on predetermined criteria that is not related to, and does not encourage, any risk taking, Lysa’s remuneration policy is deemed consistent with the integration of sustainability risks in the decision-making process.