Sustainability-Related Risk Disclosure (SFDR)

The Regulation of the European Parliament and of the Council (EU) 2019/2088 (the "SFDR Regulation" or "SFDR") has been implemented into Icelandic law with the Act on Disclosure of Sustainability in the Field of Financial Services and the classification system for sustainable investments. The SFDR Regulation is intended to ensure uniform information on how financial market participants assess sustainability-related risks and how to take into account the main negative effects of sustainability factors when making investment decisions. The goal of the regulation is to increase transparency for investors and reduce inconsistencies in disclosure.

LSR Sustainability Declarations

Art. 3 Declaration Art. 4 Declaration LSR’s Remuneration Policy

Art. 3 - integration of sustainability risk in the investment decision-making process

The SFDR Regulation defines sustainability-related risk as an environmental, social or governance event or condition which, if it occurs, could have a significant negative impact on the value of an investment.

LSR has issued a declaration in accordance with Article 3 of the SFDR in which the fund describes how sustainability risks are incorporated into the investment decision-making process.

Art 4 - Principal Adverse Impact, PAI, on sustainability factors)

The SFDR regulation defines sustainability aspects as environmental, social and employee-related issues, respect for human rights and issues related to the fight against corruption and bribery. Main negative effects generally refer to the negative effects that an investment decision can have on the above-mentioned factors.

LSR has issued a declaration in accordance with Article 4 of the SFDR which describes how and whether the LSR takes into account the principal adverse impacts (PAI) of investment decisions on sustainability factors.

Integration of sustainability risks in the remuneration policy

Risks related to sustainability are considered in LSR's Remuneration Policy, but the Remuneration Policy must be in line with the long-term interests of fund members and support the fund's focus on sustainability.