CM-Equity AG Information on the manner of sustainability risk inclusion (Art. 6 Disclosure Regulation)

Due to legal requirements (Art. 6 para. 1 Disclosure Regulation) we are obliged to provide the following information. We do not intend to advertise ecological or social features in our investment strategies or for other specific financial instruments:

  • As a company, we want to contribute to a more sustainable, resource-efficient economy with the aim in particular of reducing the risks and impacts of climate change. In addition to observing sustainability goals in our corporate organization itself, we also see it as our task to sensitize our customers to aspects of sustainability when structuring the business relationship they have with us.
  • Environmental conditions, social upheavals and or poor corporate governance may in many ways have a negative impact on the value of our customers’ investments and assets. These so-called sustainability risks might have a direct impact on the net assets, financial position and results of operations, and also on the reputation of the investment properties. As such risks cannot ultimately be completely ruled out, we have developed specific strategies for the financial services we offer to identify and limit sustainability risks.
  • To limit sustainability risks, we try to identify and, where possible, exclude investments in those companies that show an increased risk potential. With specific exclusion indicators, we see ourselves in a position to align investment decisions with environmental, social or corporate values. For this purpose, we generally rely on valuation methods that are recognized in the market.
  • The identification of suitable investments can consist, among other things, in choosing to invest in investment funds whose investment policy is already equipped with a suitable and recognized sustainability filter to reduce sustainability risks. The identification of suitable investments to limit sustainability risks may also consist of our using recognized rating agencies for product selection in asset management. The specific details result from the individual agreements.

Provided that we succeed in identifying companies with increased risk potential and excluding them from an investment, the remaining sustainability residual risks should only have a minor adverse impact on returns and should not deviate significantly from the general market risk. Sustainability risks that are not identifiable to us in the identification process described above may have a significantly greater impact on the return.

 

CM-Equity AG Disclosure of non-consideration of adverse effects on sustainability factors (Art. 4 Disclosure Regulation)

Due to legal requirements (Art. 4 para. 1 a para. 2 Disclosure Regulation or Art. 4 para. 5 a Disclosure Regulation) we are obliged to provide the following information:

  • Investment decisions may have adverse effects on the environment (e.g. climate, water, biodiversity), on social – and employee concerns, and may also be detrimental to the fight against corruption and bribery.
  • As a matter of principle, we have a considerable interest in fulfilling our responsibility as a financial services provider and in helping to avoid such effects in the context of our investment decisions or investment recommendations. However, the implementation of the legal requirements stipulated for this purpose is, according to the current state of affairs, unreasonable due to the existing and still impending bureaucratic framework conditions. Moreover, major legal issues are still unresolved.
  • To avoid legal disadvantages, we are therefore currently prevented from making a public statement to the effect that and in what way we take into account adverse impacts on sustainability factors (environmental concerns, etc.) in the context of our investment decisions or investment recommendations. Therefore, we are required to state on our website that we do not take them into account for the time being and until further clarification (Art. 4 para. 1 b Disclosure Regulation or Art. 4 para. 5 b Disclosure Regulation).
  • However, we expressly declare that this handling does not change our willingness to contribute to a more sustainable, resource-efficient economy with the aim of reducing the risks and impacts of climate change and other environmental or social ills in particular.