ESG

What is environmental, social and corporate governance?

The abbreviation ESG can be deciphered as Environmental, Social and Corporate Governance, that is environment, society and corporate governance. It is to these aspects that we pay special attention, because we care about both customers and investors, for whom sustainability policy is playing an increasingly important role.

ESG is a significant non-financial factor currently considered in business decisions in many companies around the world. On this basis, investors often choose companies that correspond to their values.

What are ESG factors?

Sustainability factors include the following three areas:

• environmental (eenvironmental), e.g. waste management, reduction of carbon emissions,
• social (social), such as the fight against discrimination, the quality of working conditions, health and safety,
• related to corporate governance and management (governance) e.g. anti-corruption measures, fair tax strategy.

From November 22, 2022, we are obliged to ask you a question about investment objectives that are related to sustainability factors (ESG). Providing this information to us is necessary so that we can act in your best interests.

In connection with this change, in the process of providing services to you, we ask you to complete a new version of the suitability survey, which examines the objectives and expectations in this regard. To the survey so far, we have added one question, the answer to which will allow us to take ESG factors into account in your investment objectives.

If we do not receive this information, we will not be able to determine whether the financial instrument is in line with your objectives, which are related to ESG factors.

The change of the survey results from the regulations which you can read here: ESMA publishes final guidelines on MiFID II suitability requirements (europa.eu)

The most important ESG regulations:

— Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 establishing a framework to facilitate sustainable investments, amending Regulation (EU) 2019/2088

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Approach to environmental, social and corporate governance issues, including the introduction of sustainability risks, in relation to the provision of portfolio management services - more details.

Strategy for incorporating risks to sustainability into the business in the investment decision-making process in the provision of the portfolio management service.