SFDR

Regulation (EU) no. 2019/2088 of the European Parliament and of the Council of 27.11.2019 or Sustainable Finance Disclosure Regulation (SFDR) aims to increase transparency on how sustainability risks are integrated into the investment decision and recommendations of financial products and services, in order to competition at industry level and to prevent greenwashing.

What is sustainability risk?

Sustainability risk means an environmental, social or governance event or condition that, if it occurs, could cause a significant, actual or potential adverse effect on the value of the investment.

As a financial consultant from the perspective of the distribution of insurance-based investment products, BRD-Groupe Société Générale S.A. (BRD) informs its customers on how sustainability risks are integrated into the distribution process of these products.

Insurance-based investment products are insurance products that provide a maturity value or a redemption value that is exposed, in part or in full, directly or indirectly, to financial market fluctuations by investing net insurance premiums in investment funds.

Sustainability policies

BRD is part of the Société Générale Group, a group with constant concerns in terms of environmental, social, ethical and governance aspects, reflected in the way customers and service providers are selected. For more details, please consult the environmental, social and governance policies of the Société Générale group.

Société Générale Group aims to build a sustainable future with its employees through responsible and innovative financial solutions. The remuneration policy of BRD employees, which promotes a sound and efficient management of risks related to sustainability, for employees involved in financial consulting activities, is also in line with this objective. The remuneration policy can be consulted here.

Negative effects on sustainability

BRD, as a distributor of insurance-based investment products, does not currently have insurance products in its distribution portfolio that integrate sustainable investments, so that, for the time being, it will not be able to evaluate in consultancy process, directly and personalized the risks related to sustainability or the likely effect of risks related to sustainability on the return on financial products in which the net insurance premiums are invested.

However, BRD intends to reassess this situation, as insurance companies whose insurance-based investment products are distributed by BRD, respectively the managers of investment funds in which the net premiums of insurance products are invested, will adapt the characteristics of the insurance products by integrating sustainability risks.

In this regard, BRD will carefully monitor the investment products based on insurance distributed to its clients.