Responsible investing at Vive: what does our light green approach entail?

\strong id="">Did you know that Vive, as an investment product, has an SFDR Article&nbsp;8 classification?</strong> In other words: we are \strong id="">light green</strong>. That may sound abstract, but it simply means we consider sustainability in our investment approach. In this blog, we explain in a clear and accessible way what this SFDR classification entails, why Vive is light green (and not a dark green provider), and how our sustainability policy works in practice. This way, you know exactly how we &nbsp;invest responsibly – without complicated jargon.

\h2 id="">SFDR: grey, light green or dark green?</h2>

The \strong id="">Sustainable Finance Disclosure Regulation (SFDR)</strong> is a European directive that classifies financial products based on sustainability. Simply put, there are three colour groups:

\ul id="">\li id="">\strong id="">Article&nbsp;6 (grey):</strong> These investments hold <em id="">no</em> consideration for specific sustainability criteria. They are, as it were, “colourless” in terms of sustainability – sustainability plays no significant role here. Therefore, there is no internal steering on this aspect, and the investment products you purchase through that party are not tested against ESG criteria.Investments that do not fall into the green categories are therefore considered grey (Article&nbsp;6). \strong id="">Vive</strong> consciously chooses, where possible, <em id="">not</em> to invest in grey investments, but rather in \strong id="">light green (Article&nbsp;8) investments</strong>. Our investment portfolio falls entirely into this light green category. But why “only” light green and not dark green? We are happy to explain.

\h2 id="">Why is Vive light green and not a dark green provider?</h2>

You might be wondering: why is Vive not all-in as dark green (Article&nbsp;9)? In short: \strong id="">we combine responsible investing with a broad, balanced investment strategy.</strong> Article&nbsp;9 funds must have a specific sustainable objective and invest almost exclusively in sustainable projects or companies. That sounds great, but it also brings limitations – such as less diversification, fixed lock-up periods, or higher costs – and is not suitable for every investor. </p>

\strong id="">Vive chooses a practical middle ground:</strong> we <em id="">promote</em> social characteristics (which is why we are light green), but we do not have the strict obligation to only be in sustainable investments. This allows us to offer a well-diversified portfolio with a focus on both return and responsibility.

\p id="">Moreover, some investment categories are difficult to label as “green”. An example is \strong id="">government bonds</strong>. Government bonds are important for a stable portfolio but rarely receive a sustainability label (they often fall under Article&nbsp;6, as countries do not receive an ESG rating as companies do). Vive also invests in this type of investment for healthy diversification. \strong id="">We are honest:</strong> we do not make promises we cannot keep and consciously choose our strategy.

\p id="">Light green, therefore, means that we take sustainability seriously, without pretending that we only invest sustainably. That suits our philosophy: investing as responsibly as possible within sensible frameworks. But what exactly do we do? Below you can read how our sustainability policy works.

\h2 id="">How does Vive invest responsibly?</h2>

“Light green” is not just a sticker for us – it is embedded in our entire approach. We have drawn up a comprehensive <a href="https://www.viveapp.com/documents/duurzaamheidsbeleid" target="_blank" id="">sustainability policy,</a> but we will keep it understandable here. Our approach revolves around three pillars: \strong id="">exclusions, best-in-class selection</strong> and \strong id="">active ownership (engagement & voting policy)</strong>. With this, we ensure that your money does not end up in dubious affairs, but <em id="">does</em> go to frontrunners in sustainability, and that we continue to urge companies to make better choices.

\h3 id="">Exclusions and social characteristics: what we do not do</h3>

Firstly, we resolutely exclude certain investments. \strong id="">Vive excludes companies</strong> that are diametrically opposed to sustainability and social responsibility. For example, we <em id="">do not</em> invest in companies involved in controversial weapons (such as cluster bombs or nuclear weapons). Companies that derive a large part of their turnover from tobacco production are also excluded by us. Furthermore, we avoid companies that are systematically involved in serious controversies in the field of environment, human rights, labour rights, or corrupt governance. And companies that violate the United Nations' \strong id="">UN Global Compact</strong> principles (basic principles for human rights, labour, environment, and anti-corruption) are also not included.

\p id="">\strong id="">In short:</strong> what we do níet do is at least as important as what we wél do. No weapons, no tobacco, no notorious offenders – that is step one of responsible investing at Vive.

\h3 id="">Best-in-class selection: picking out the frontrunners</h3>

In addition to excluding bad things, we focus on integrating sustainability into everything we do include. In our investment choices, we pay attention to how companies and funds score on Environment, Social & Governance (environment, people & society, and good governance). It is actually a fancy term for a simple idea: do not just look at the financial side, but also at the impact and behaviour of a company.

\p id="">Specifically, Vive only selects funds that excel in sustainability within their category. We call this a best-in-class approach: we choose the best candidates within each investment category. How do we do this? Among other things, by looking at ESG ratings (report cards for sustainability). As a rule of thumb, we require funds to have at least an MSCI ESG rating of BBB or higher. This means that the underlying companies score average to good on sustainability. No substandard performers, then, but at least the middle-of-the-road or frontrunners in their sector.

\p id="">Furthermore, we prefer to invest in funds that themselves also have an SFDR classification of at least Article 8 (light green) – with a strong preference for Article9 funds if possible. In other words, we look for fund managers who, like us, place a high value on responsibility. This way, you get a portfolio of companies that have their affairs in order, from climate policy to employee rights. This is how we build an investment portfolio that is not only financially healthy but also a step ahead in terms of sustainability.

\h3 id="">Active ownership: engagement and voting rights</h3>

Responsible investing does not stop at choosing what to invest in and what not to. At least as important is what else happens with the companies we invest in. That is why we ensure that the funds in our portfolio engage in active ownership. Simply put, this means they use their influence as a shareholder to make companies more sustainable and responsible.

\p id="">\strong id="">Engagement</strong> is a key word here: fund managers enter into dialogue with the companies they invest in. If a company is lagging, for example, in CO₂ reduction or diversity in the workforce, these funds will urge improvement. They ask critical questions, put pressure on management, and follow up on progress.

\p id="">In addition, there is the \strong id="">voting policy</strong>: Vive only invests in funds that actively exercise their \strong id="">voting rights</strong> at shareholder meetings. As a shareholder, they can vote on important decisions – such as climate reports, the appointment of directors, or rewarding clean instead of polluting activities. By actively voting, these funds ensure their voice (and therefore indirectly your invested money) counts towards a more sustainable course for companies. We do not passively sit on the sidelines; through our funds, we actively participate in stimulating positive change.

\p id="">This active share ownership means that investing with Vive does not just stop at nice words. We match our principles with actions by constantly giving the companies you invest in a nudge in the green direction.

\h2 id="">Ready to start responsible investing with Vive?</h2>

Does this sound like an approach that suits you? \strong id="">With Vive, you can easily start investing in a way that considers people and the environment.</strong> You receive a personal investment plan that suits your situation, and which falls within our light green strategy. This way, you are sure that you are investing with an eye on the world, but where you can still achieve returns. All this without having to screen all the companies yourself or pore over annual reports.

\p id="">We are \strong id="">honest and transparent</strong> about what we do. You now know: Vive is an SFDR Article 8 product. This means we make responsible choices and avoid bad options, but also that we do not claim to save the world entirely tomorrow with your deposit. However, we do believe that every step counts. Your investment with Vive promotes social characteristics and contributes to your own financial future.

\p id="">Are you ready to let your money work for you? Simply open an account in our app and discover what investing with the right balance between return and responsibility looks like. This way, you build your future and consider the world around you.

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