The FNG Label for sustainable mutual funds makes two quality statements::
1. The fund concept meets the applicable minimum requirements in terms of sustainability.
2. In addition, the fund has introduced particularly ambitious initiatives regarding its sustainability strategy.
Minimum requirements and exceptional performance
In order to obtain certification of compliance with FNG’s criteria, funds must satisfy a range of minimum requirements. These include criteria relating to transparency and processes, the exclusion of weapons and nuclear power, and consideration of the four areas of the UN Global Compact: human rights, labour rights, environmental protection, and combatting corruption and bribery. Furthermore, at least 90% of the portfolio must be analysed against ESG criteria.
The basic criteria of the FNG Label thus represent an overlapping set of the major standards applicable to sustainable investments in use internationally and the exclusion criteria and thematic areas deemed crucial by investors and other key stakeholder groups in the German-speaking countries. An award for exceptional performance is given to funds which are distinguished by a particularly consistent and rigorous sustainability strategy in relation to product standards, institutional credibility, selection and the exertion of direct influence on companies. The applicant may be awarded a maximum of three stars here.
Detailed information on the criteria and on the scoring system can be found here or in the Rules of Procedure.