SFDR 

What is the Sustainable Financial Regulation Disclosure (SFDR)?  

Since 2021, the Sustainable Finance Regulation Disclosure (hereinafter: SFDR) has been in force. This legislation forms part of the European Commission’s Action Plan for financing sustainable growth. The SFDR builds on the United Nations Sustainable Development Goals (SDGs) and the Paris Climate Agreement, which was established to significantly reduce the risks and effects of climate change. The aim of the SFDR is to improve the provision of information to investors and/or clients regarding the sustainability impact of investment policy and investment decisions. Such transparency is essential to promote the flow of capital towards sustainable investments, which are necessary for the transition to a sustainable economy. SFDR disclosures support investors in making these investment choices. 

Why does the SFDR apply to Bouwinvest?  

The SFDR applies to Bouwinvest Real Estate Investors B.V. in its capacity as manager of investment institutions. The SFDR also applies to both the individual investment institutions (the Dutch funds) and to discretionary asset management (the international mandates).  

What does the SFDR mean for Bouwinvest?  

The SFDR stipulates that every financial product must be classified based on its sustainability ambition. The SFDR recognizes three qualifications: dark green (Article 9), light green (Article 8), and neutral (Article 6). 

For each of Bouwinvest’s financial products, the ecological and social characteristics promoted by the fund have been explicitly identified and linked to Bouwinvest’s ESG objectives. For each characteristic, Key Performance Indicators (KPIs) have subsequently been defined. 

In addition to clarifying the sustainability ambition, financial products must provide transparency regarding sustainability risks. ESG risks are an integral part of risk management within Bouwinvest. Within the ESG risk category, Bouwinvest distinguishes between four types of risk: 

-Physical risks related to climate change 

-Transition risks related to climate change 

-Social risks 

-Governance risks 

The ESG risk framework is applied at asset, product, and portfolio levels in various ways to define the relevance of ESG risks at different levels. The framework serves as a reference for the assessment of ESG risks in all investment and divestment proposals. 

The ESG risk methodology and the determination of the effect on investment products are continually evolving. Our main focus is on further quantifying these risks, in line with developments in the market, particularly regarding data availability and instruments. 

SFDR disclosures by Bouwinvest  

Bouwinvest reports through the following documents: 

-Pre-contractual disclosure as an appendix to the Information Memorandum for the investment funds 

-Periodic disclosure as an appendix to the fund annual reports 

-Product-specific website disclosures on the fund-specific pages of the Bouwinvest website 

-PAI disclosure via the website by 30 June each year 

-Website disclosures via the SFDR page on the Bouwinvest website 

ESG 

Bouwinvest invests for the long term, with the primary responsibility of achieving financial returns. At the same time, we believe that long-term financial success and outperformance are only possible when ESG considerations are an integral part of investment decisions. We realize both financial and social value creation in close cooperation with our partners. Bouwinvest incorporates environmental, social, and governance (ESG) criteria in all its investment decisions, in line with the United Nations Principles of Responsible Investment (UN PRI). By endorsing the UN PRI, Bouwinvest acknowledges the importance of responsible investment and is committed to implementing the principles in its investment process. Bouwinvest is committed to the three Sustainable Development Goals (SDGs) that fall within its sphere of influence: 

-Affordable and clean energy (SDG 7) 

-Sustainable cities and communities (SDG 11) 

-Climate action (SDG 13) 

More information about the SDGs can be found in the ESG Policy.