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Responsible Investment

The Sustainable Finance Disclosure Regulation (SFDR)

The European Union has designed an Action Plan on sustainable finance to drive action by the European financial sector.

A key part of this action plan is the Sustainable Finance Disclosure Regulation (SFDR), which came into force on 10 March 2021. The SFDR sets disclosure standards relating to ESG risk-mitigation policies and reinforces ESG considerations in the investment decision-making process.

At Rothschild & Co, we believe that the SFDR regulation should not be approached as a simple regulatory constraint. It constitutes an opportunity for our investment businesses to develop investment strategies in line with global sustainability objectives while competing on equal terms with other market players.

Rothschild & Co has set up a working group focused on implementing the recommendations of the Taskforce on Climate related Financial Disclosures and the SFDR regulation, working alongside the Group Responsible Investment Committee and the affected investment businesses.

Our entities’ Sustainability Risk Management policies (SFDR)

As stated in Article 3 of the SFDR regulation as at 10 March 2021, the documents listed below detail how the eligible entities in the Rothschild & Co group manage sustainability risks in their investment process.

Our entities’ Principal Adverse Impact Statements (SFDR):

As stated in Article 4 of the SFDR regulation as at 10 March 2021, the documents listed below detail how the relevant entities in the Rothschild & Co group monitor and manage sustainability impacts generated by their investment strategies.

Our entities’ Remuneration policy (SFDR)

Rothschild & Co actively manages sustainability related risks within our businesses. Sustainability Risk Policies have been implemented in the group’s Wealth & Asset Management and Merchant Banking entities which provide a framework for employees involved in research/analysis, decision making, monitoring, advice and management in relation to investments. Rothschild & Co is committed to an ongoing focus on sustainability risks through employee training, development and attestations to ensure compliance with our policies. Adherence to the Sustainability Risk Policies is one of the factors that is considered in the annual performance review and compensation decisions for the relevant employees in the affected group entities. The group has updated its remuneration policy accordingly, setting basis for eligible entities’ remuneration policy update.

As stated in Article 5 of the SFDR regulation as at 10 March 2021, the documents listed below detail how the eligible entities in the Rothschild & Co group take into account sustainability risks in their remuneration policies.

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