ESG – Why?

The selection of securities according to the central criteria of environmental and social issues as well as good corporate governance (environment, social, governance, ESG for short) is the new standard when it comes to sustainable and responsible investing.

The EU Commission created the framework for this with the European Green Deal presented in 2019. The aim is to reduce net emissions of greenhouse gases to zero by 2050 and put the EU on the path to a climate-neutral society.

The demand from customers for sustainable financial investments and responsible investments is also unbroken and is becoming increasingly important. Munio provides full support here and enables a comprehensive ESG investment service; both for asset management and for investment advice.

In order to achieve the goal of the Green Deal, the regulators responsible for the financial market (EU Commission, ESMA, BaFin) have published guidelines on how sustainable investments are to be defined and which aspects financial service providers in the securities business will have to consider in connection with the offer of sustainable capital investments in the future to have:

• Since March 31^st, 2022 – sustainability report in quarterly reporting
• Since August 2^nd,2022 – Recording of the customer’s sustainability preferences
• Since November 22^nd, 2022 – Consideration of customer preferences when creating investment proposals and investment guidelines
• Since June 30^th, 2023 – Identification of the measuring points „Principal Adverse Impact Indicator“ (PAIIs) retrospectively for one calendar year

ESG in Private Wealth Management

As part of the regulatory framework, it is necessary in asset management to transparently report the sustainability of the products based on certain criteria. The munio software fully meets these regulatory requirements in cooperation with the data supplier ISS ESG as a partner. The characteristics of the measured sustainability criteria for the products in the portfolio are shown in the performance reporting module. The performance reporting was continuously developed with customers and data suppliers and meets the requirements of the various associations such as BVI, BVR or VuV as well as any regulatory requirements. munio supports you in fulfilling the regulatory requirements and impresses in particular with its clear and transparent design.

ESG in Advisory & Financial Planning

In accordance with the regulatory requirements for investment advice, munio supports you in the investment advice process in order to be able to take customer requests for sustainable products into account. munio is based on the regulatory requirements of the ESMA: From recording the customer’s sustainability preferences, to forming and taking them into account in investment advice, to completing the portfolio. The range of services is rounded off with the suitability declaration and an individualized investment proposal based on all customer specifications.