Sustainability
The purpose of the Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector is the integration of sustainability risks, consideration of the adverse effects on sustainability and promotion of environmental or social characteristics, as well as sustainable investments.
CISCO is aware of the key elements comprising EU's Environmental, Social and Governance ("ESG") Initiatives and in particular on the establishment of a framework to facilitate sustainable investment ("TAXONOMY") and the disclosure requirements required in line with the Sustainable Finance Dislosure Regulation ("SFDR"). In this respect, the Company is in a transitional phase amending its investment policies to integrate processes that take into account sustainability risks and impacts and incorporate in its decision-making processes, criteria satisfying human, social, economic, governance and environmental topics and concerns when identifying investment solutions that are offered to clients.
Currently the Asset Management Team, invests primarily in UCITS funds, some of which take into consideration environmental and social criteria. Once this revision is finalised and all aspects are revisited, the Company will consider the EU criteria for environmentally sustainable economic activities.
No consideration of adverse impacts of investment decisions on sustainability factors
Declaration of Non-Examination of the Adverse Effects of Investment Decision on Sustainability Factors
CISCO does not consider the principal adverse impacts of its investment decisions on sustainability factors in the manner prescribed by Article 4 of the Sustainability-Related Disclosure Regulation in the Financial Services sector.
Article 4 of the Regulation requires financial participants to make a clear statement as to whether they consider the "principal adverse impacts" of investment decisions on sustainability factors. Although CISCO takes sustainability and ESG very seriously, it is noted that some of its investment strategies cannot currently support the adoption of the adverse impacts' regime within SFDR given that these strategies involve mainly investing in mutual funds, where it is often not possible to conduct detailed dilligence on the principal adverse impact of our investments on sustainability factors.
The Company will keep its decision not to comply with the PAI regime under regular review and will formally re-evaluate the decision at least annually.