Managing your capital

7 February 2019

Quality standard for sustainable financial products

New Febelfin label will help sustainable investors make conscious choices

Concerns about the future of our planet are growing. As a society we are therefore thinking and acting in an increasingly sustainable way. Attitudes are changing and we are taking environmental and social consequences into account more and more in our day-to-day lives.

Investment and sustainability

As an investor you can also play a part in creating a more sustainable society. By opting for sustainable investment alternatives, you reward companies and countries (governments) that are achieving better performance in the area of sustainability. After all, when these kinds of investments are made attention is paid to the consequences for people and the environment.

 

However, the term ‘sustainable investment’ can evoke quite different images in people’s minds. What is regarded as a sustainable or socially responsible activity often depends on personal sensitivities or convictions. To comfort sustainable investors and reassure them that what they are being offered as a sustainable investment product is actually focused on sustainability, it is important that such products at least satisfy a number of quality requirements.

Quality standard

For that reason, ING, in consultation with the wider financial sector and Febelfin, as well as investors, experts and civil society, has developed a quality standard for sustainable financial products. This quality standard defines a number of minimum requirements that sustainable financial products must satisfy, both within the investment process and the investment portfolio. Products that meet these basic requirements, and preferably have their sights set even higher, are awarded a label.

 

The quality standard is available on the Febelfin website. Over the coming months the monitoring process and operational aspects will be developed in more detail, allowing the first labels to be awarded after the end of the summer.

Greater transparency
"This quality standard will allow investors to benefit from greater transparency."

Caroline De Moor, Sustainable Investments Specialist at ING: “This quality standard will allow investors to benefit from greater transparency. At ING we are keen to market a number of sustainable funds in the future that carry the sustainable label.”

 

Frédéric Degembe, Investment Office at ING: “These quality standards, which put the players in the investment industry on an equal footing, make it possible to approach sustainability in a pragmatic way. Working from this basis, from now on ING will be offering its clients an investment product that we have developed in-house, ING Sustainable. This aims to generate a risk/return profile at least equal to that of traditional investments over an entire economic cycle.”

More information on sustainable investments?