ESG sustainability factors
The Sustainable Finance Disclosure Regulation (SFDR) is a European regulation that lays down rules for transparency regarding the inclusion of ESG risks and the consideration of adverse effects on sustainability and the provision of sustainability information in the financial services sector.
The identification of ESG risks is generally performed by the product manufacturer (financial market participant) and the information provided by the product manufacturers may be taken into account in the investment advice provided.
When selecting financial products in accordance with SFDR, which it recommends to its clients in the investment advisory process, Tatra banka, a.s. takes into account the extent of integration of ESG factors in the financial product declared by the product creator. Tatra banka, a.s. generally supports sustainability factors, but at the same time does not rule out that financial instruments in the sense of SFDR, which it recommends to its clients in the investment advisory process, will also include financial products for which the scope of ESG factors is not disclosed or relevant.
No consideration of sustainability adverse impacts
When providing investment advice, Tatra banka, a.s. does not currently consider the sustainability adverse impacts, such as environmental, social or employment issues, respect for human rights, and the fight against corruption and bribery (so-called "ESG factors"). This is due to the fact that Tatra banka, a.s. does not have all the necessary information from third parties (financial market participants) that would allow it to consider the sustainability adverse impacts on ESG factors and final investors to make an informed investment decision.