The FNG Matrix and FNG Sustainability Profiles
FNG Sustainability Profiles and the FNG Matrix are guidance tools to assist investors in the selection of sustainable mutual funds. Both tools help investors and financial advisors to obtain an overview of the sustainability strategies used. This information is supplemented by general key fund data.
The FNG Matrix functions as a database which contains information on the various sustainable funds and which, in particular, makes it possible to compare them. Each fund has its own two-page FNG Sustainability Profile based on the FNG Matrix, which presents the information on the sustainability strategy used in a concise format.
The FNG Matrix and FNG Sustainability Profiles are aimed at newcomers to sustainable investment wishing to explore the field for the first time, as well as clients, financial advisors and sales people who are looking for guidance and comparability, and any other interested parties. They are designed as guidance tools and not as a substitute for independent analysis. They are not intended to replace independent evaluation and do not constitute any form of advice, recommendation or offer.
The aim of the FNG Matrix and FNG Sustainability Profiles is to present an overview of each individual fund’s sustainability strategy in relation to the three key areas – environment, social and governance (ESG for short) – in a way that is clear and easy to understand, and so to pursue the following objectives:
- Environment: nature conservation and environmental protection; sustainable use of natural resources.
- Social: promotion of peace; protection of human dignity and “local cultures”; eradication of poverty; education and cultural diversity; good working conditions.
- Governance: responsible company management – cooperative, fair and transparent management of companies and public bodies, corporate social responsibility, transparency in company management, fair contract award procedures.
The FNG Matrix and FNG Sustainability Profiles have detailed information on content and methodology in these three key areas, i.e. on the investment strategy adopted to address the particular key area or theme. For example, the “armaments” exclusion criterion can be used to support peace-building, or the best-in-class approach used to improve social and environmental standards in a particular sector. The FNG Matrix and FNG Sustainability Profiles also contain information on transparency criteria and general key data.
The FNG Matrix and FNG Sustainability Profiles are designed as guidance tools and are not a substitute for independent analysis. They are intended purely for information purposes and do not constitute any form of investment advice or recommendation. The information in the FNG Matrix and FNG Sustainability Profiles is based on information provided by the issuers themselves.
Click below to obtain an overview (information in German):
Tips on using the FNG Matrix and FNG Sustainability Profiles
The FNG matrix is presented as an Excel table, and its search and sort functions can be used to find funds based on ethical, sustainable or general content criteria and to compare these with one another. The FNG Sustainability Profiles can be downloaded as PDF documents. A profile, summarizing all the important key data on two pages, is available for each fund.
You can find further information on sustainable mutual funds and the FNG Sustainability Profiles on the website of our project partner, the Sustainable Business Institute, at www.nachhaltiges-investment.org.
The Sustainable Business Institute (SBI) was founded in 1987 and since that time has been actively contributing to the development of sustainability management and the integration of a cultural and environmental dimension into economics, as well as to sustainable management methods. It focuses in particular on bringing together the viewpoints of the financial sector and the real economy. Via its market platform www.nachhaltiges-investment.org, the SBI has been providing a unique overview of sustainable funds, indexes and companies, as well as rating and research agencies, since 2003.
For issuers: To have your fund included in the FNG Matrix and an FNG Sustainability Profile set up
The Transparency Logo for sustainable mutual funds
All sustainable funds with the Transparency Logo have disclosed details of their sustainability strategy and associated processes in their transparency code. Further information about this can be found at http://www.forum-ng.org/de/transparenz/transparenzlogo.html.