Sustainable Finance Disclosure Regulation
In compliance with the provisions of REGULATION (EU) 2019/2088 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of November 27, 2019 on the Disclosure of Information related to Sustainability in the Financial Services sector, below we provide the Information Related to the integration of Sustainability in the asset management unit of the Garanti BBVA International.
Garanti BBVA International recognizes that events or circumstances of an environmental, social or governance nature (ESG), if they occur, can have an actual or potential significant adverse effect on the value of an investment. These are referred to as sustainability risks. The Bank has established an Investment Committee to evaluate the risks of the investment proposals. Among others, sustainability risks are taken into account by the Investment Committee while performing such evaluation and integrated in the Bank’s decision making process.
The Remuneration Policy is consistent with the integration of sustainability risks. Variable remuneration of each staff member is based on criteria which encompass relevant organizational, risk management and governance policies and processes of GBI, which integrate sustainability risks.
Investment decisions made by the client on the basis of our investment advice may have an adverse impact on sustainability factors, i.e., environmental, social, and employee matters; respect for human rights; and anti-corruption and anti-bribery matters.
Garanti BBVA International does not currently consider what the effects of its investment advice could be on sustainability factors.
This is for the following reasons:
- The objective of GBI as financial advisor is to provide investment advice to professional clients only in relation to financial instruments and asset allocation for clients to achieve the highest possible return at an acceptable risk on the terms and conditions as pre-agreed with its customers. Managing to avoid adverse effects on sustainability factors is not a specific priority nor requested by our clients at this moment.
- The detailed data to be obtained which would have to be taken into account in order to determine what the effects of its investment advice could be on sustainability factors are yet not available in the market to a sufficient extent and, furthermore, obtaining such data are currently not proportionate for GBI, given the type of investment services provided and the expectations of clients with respect thereto.
Reconsideration of the foregoing may become relevant in various circumstances, for example, if GBI’s Investment Services and Activities Procedure is adjusted or if its clients will request it to consider adverse impacts on sustainability factors in our investment advice.