ESG - Luxembourg

INTRODUCTION

In 2015, the United Nations General Assembly put a new framework for sustainable development on the table: the 2030 Agenda for Sustainable Development, the core of which are the Sustainable Development Goals (SDGs) that are the basis for the transition to a decarbonized, more sustainable, resource-efficient, and circular economy.

Ensuring the long-term competitiveness of our economies is critical. Along these lines, the Paris Agreement also reinforces this response to climate change by ensuring, among other things, that financial flows are consistent with these claims.

We are convinced that these ideas are the way to a better future. That is why Andbank Luxembourg is adopting measures in this direction, aligning ourselves with the trends related to sustainability.

COMMITMENT

Disclosing information to end-investors on these issues is an essential part of our commitment (Regulation 2019/2088 EU or Disclosure Regulation). Reporting on the integration of sustainability risks, the analysis of adverse sustainability impacts, sustainable investment objectives or the promotion of environmental or social features has become a purpose to pursue in our business strategy and investment decision-making.

At Andbank Luxembourg, the integration of ESG criteria is considered a complementary tool to traditional financial analysis, offering a greater degree of information on current and potential risks. We will focus mainly on the following actions:

To gradually include sustainability in our business activities, identifying opportunities and providing service to clients on the matter.
To know the preferences in terms of sustainability of the clients to whom we provide discretionary management services and to be able to adapt the mandates according to these preferences.
To incorporate risks based on ESG factors during Bank’s various risk analyses such as credit risk, counterparty risk, market risk.
Comply with current and future legal requirements on sustainability matters.
To disseminate the policy among employees via the Bank’s internal and external channels and to establish lines of communication with “groups of interest” on environmental and social matters.
To clarify investors and asset managers’ obligations related to sustainability criteria.
To work with our clients in a responsible manner to ensure sustainable practices and economic activity that generate shared short- and long-term prosperity.
Support the transition of our clients to drive progress on climate action and financial health through effective management of resources while taking into consideration associated risks.
To orient the activity to achieve the binomial of profitable and sustainable activity.

Regarding the integration of extra-financial ESG factors (environmental, social and governance), we would like to point out that:

Our managers, bankers and all Andbank Luxembourg employees are involved in a continuous training program on the subject. Employees that we consider key in the development of the impacted areas have specific training.
In our relationship with the client, when providing an investment service, ESG factors and controversies are considered from a materiality perspective.

INTEGRATION OF ESG CRITERIA. INVESTMENT SERVICES

The integration of ESG criteria is logically carried out in conjunction with financial criteria to assess the suitability of the investment. All investment approaches (qualitative, quantitative, technical) are understood to be compatible with each other and with the ESG criteria.

By integration we mean the application of ESG criteria within the investment process. For the integration of ESG criteria we start with data provided by various external information providers.

Our discretionary management service relies on an investment method with two main pillars:

An analysis of the suitability and appropriateness of clients to ensure portfolios meet the requirements needed.
An analysis of each asset that is included in our recommended product lists* (equity, fixed income, funds ETFs…) from a financial and non-financial perspective.

Therefore, in the provision of the investment portfolio management service, both financial and non-financial criteria will be considered, including sustainable or ESG risks, with the aim of achieving better risk management by generating long-term sustainable benefits.

ANDBANK LUXEMBOURG ESG POLICIES

Please find a link to the documents related to our ESG approach:

Contact information: