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Sustainability
What can you expect from us?
Sustainability is an important topic at ING. Investing is no exception, and we are increasingly aware of our responsibilities in terms of environment, social and governance criteria. Here we explain how we act on our sustainability commitments within the funds managed by ING Solutions Investment Management (‘ISIM’).
When you read about sustainable investing, you often come across the abbreviation ‘ESG’, which stands for the three pillars of sustainability: environmental, social and governance:
- Environmental: this includes topics such as climate change and CO2 emissions.
- Social: this includes topics such as good working conditions and combating child labour.
- Governance: this includes topics such as diversity within the management layer of companies and robust policies to counter corruption.
We try to consider all three pillars of sustainability when making our investment decisions. Apart from meeting our financial targets, we also try to make a positive contribution to the world around us. At the same time, we also try to mitigate the ESG risks. For instance, by considering the impact of climate change on businesses or by excluding businesses that break the rules.
At ISIM, we consider sustainability in a number of ways, but always in a way that matches the needs of our clients. We have published four documents explaining exactly how we do this:
- Our ‘Responsible Investment Guidelines’ sets out how we deal with our sustainability commitments across our range of investment products.
- The procedures may vary from one fund to another. We do not want to invest in every business, and we actively exclude businesses involved in the production and processing of coal, for instance. With some investment products, we prefer engagement, actively initiating discussions with the businesses we invest in.
- The ‘ING Sustainability Risk Conduct Guidelines’ sets out how we deal with sustainability risks.
- Our ‘Adverse Sustainability Impacts Statement’ sets out how we try to limit the adverse effects of the businesses we invest in on society and the environment.
SFDR Fundrange Mapping
The document "SFDR Fundrange Mapping" describes the mapping of the Fund ranges of ISIM with regards to Sustainable Finance Disclosure Regulation (SFDR).
It classifies the Funds as follows:
- Funds that do not promote environmental and/or social characteristics ("Article 6")
- Funds that promote environmental and/or social characteristics ("Article 8")
- Funds with sustainable investment objectives ("Article 9")
Responsible investment guidelines
ISIM offers a range of funds which all have their own unique approach to sustainability. We describe these in our ‘Responsible Investment Guidelines’, respectively, ´Responsible Investment Guidelines – Pension Approach´. Reading these will allow you to judge whether a fund is right for you.
The 'Responsible Investment Guidelines' identifies four approaches of investing: 'Traditional Investing', 'Responsible Investing', 'Sustainable Investing' and 'Impact Investing'. In the Traditional investing approach, ESG aspects are not part of the investment decision process, besides mandatory exclusions such as controversial weapons. In the Responsible investing approach, ESG aspects are part of the investment decision process. In the Sustainable investing approach, the investment decision is focused on ESG aspects. Investment in companies with significant adverse impacts towards sustainability is excluded, and Investment in companies providing solutions for limiting adverse impact on sustainability promoted. In the Impact investing approach, a sustainable objective is pursued. Sustainability is given a higher priority over financial yield.
The ´Responsible Investment Guidelines – Pension Approach´ identifies one approach of investing: ´Pension Investing´. In the Pension investing approach, environmental and/or social characteristics are promoted, along with a commitment made on sustainable investment.
Sustainability Risk Integration Guidelines
In addition to general risks, investments may also be exposed to sustainability risks. The negative impact of ESG-related events (‘sustainability risks’) on the value of investments is becoming increasingly better understood. In the ‘Sustainability Risk Integration Disclosure Document’, we explain what these risks are and how we try to mitigate these in our investment decisions and in our investment advice.
Are you curious about how sustainability risks have been integrated into ING’s remuneration policy?
Principal Adverse Impacts
The actions of businesses and other organisations we invest in on your behalf can have an adverse impact on the environment, society and governance. In the ‘ISIM Sustainability Impacts Statement’, we explain how we consider the key sustainability factors that may have an adverse impact.
Active shareholding
ING engages with the businesses we invest in on your behalf. We aim to engage in a dialogue (often a series of meetings) with the governing bodies of businesses to motivate them to change their behaviour or the activities of the business where we consider this desirable. This is a measure we take to help mitigate future sustainability risks. As well as this form of engagement, we also vote at shareholder meetings to contribute to management policies that are future-proof. Read more about how this works in our engagement and voting guidelines.
Disclosure of sustainability-related information
Our document entitled ´Website product disclosure´ provides information on transparency of the promotion of environmental or social characteristics and of sustainable investments objectives for each of our funds, following either our Responsible, Sustainable, Pension or Impact investing approaches.