Did you know that Vive, as an investment product, has an SFDR Article 8 classification? In other words: we are light green. That may sound abstract, but it simply means that we include sustainability in our investment approach. In this blog, we explain in a clear and accessible way what the 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 invest responsibly – without complicated jargon.
The Sustainable Finance Disclosure Regulation (SFDR) is a European directive that classifies financial products based on sustainability. Simply put, there are three colour groups:
Investments that do not fall into the green categories are thus considered grey (Article 6). Vive consciously chooses, where possible, not to invest in grey investments, but rather in light green (Article 8) investments. Our investment portfolio falls entirely into this light green category. But why “only” light green and not dark green? We are happy to explain that...
You may be wondering: why is Vive not all-in as dark green (Article 9)? In short: we combine sustainable aspects with a broad, balanced investment strategy. Article 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 – for example, less diversification, fixed lock-up periods, or higher costs – and is not suitable for every investor.
Vive chooses a practical middle ground: we promote social characteristics (which is why we are light green), but we do not have the strict obligation to be in sustainable investments. This allows us to offer a well-diversified portfolio with an eye for both return and responsibility.
Moreover, some investment categories are difficult to label as “green”. An example is government bonds. Government bonds are important for a stable portfolio, but rarely receive a sustainability label (they often fall under Article 6, because countries do not receive an ESG rating like companies do). Vive also invests in this type of investment for healthy diversification. We are honest: we don't make promises we can't keep and we deliberately choose our strategy.
Light green therefore means that we take sustainability seriously, without claiming that we only invest sustainably. That fits our philosophy: investing as responsibly as possible within sensible frameworks. But what exactly do we do? Below you can read how our sustainability policy is structured.
“Light green” is not just a sticker for us – it is embedded in our entire approach. We have drawn up an extensive sustainability policy, but we keep it understandable here. Our approach revolves around three pillars: exclusions, best-in-class selection and active ownership (engagement & voting policy). With this, we ensure that your money does not end up in dubious affairs, does end up with leaders in the field of sustainability, and that we continue to encourage companies to make better choices.
First of all, we resolutely exclude certain investments. Vive excludes companies that are diametrically opposed to sustainability and social responsibility. For example, we do not 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 area of environment, human rights, labour rights or corrupt governance. And companies that violate the United Nations' UN Global Compact principles (basic principles for human rights, labour, environment, and anti-corruption) are also not included in our selection.
In short: what we do not do is at least as important as what we do. No weapons, no tobacco, no notorious offenders – that is step one of responsible investing at Vive.
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: not only looking at the financial side, but also at the impact and behaviour of a company.
Specifically, Vive only selects funds that excel in sustainability within their category. We also call this a best-in-class approach: we choose the best candidates within each investment category. How do we do that? Among other things, by looking at ESG ratings (report cards for sustainability). We use the rule of thumb that funds must have a minimum MSCI ESG rating of BBB or higher. This means that the underlying companies score average to good on sustainability. No underperforming students, then, but at least the middle-of-the-road or leaders in their sector.
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 Article 9 funds. 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 has an edge in terms of sustainability.
Responsible investing does not stop at choosing what you do and do not invest in. 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 that they use their influence as a shareholder to make companies more sustainable and responsible.
Engagement is a key word here: fund managers enter into dialogue with the companies they invest in. If a company is lagging behind on, for example, CO₂ reduction or diversity in the workforce, these funds will push for improvement. They ask critical questions, put pressure on management, and monitor progress.
In addition, there is the voting policy: Vive only invests in funds that actively exercise their voting rights at shareholders' meetings. As a shareholder, they can vote on important decisions – think of climate reports, appointment of directors, or rewarding clean instead of polluting activities. By actively voting, these funds ensure that their voice (and therefore indirectly your invested money) counts for a more sustainable course for companies. We are not passively sitting on the sidelines; through our funds, we actively participate in stimulating positive change.
This active ownership means that investing with Vive does not stop at pretty words. We link actions to our principles by constantly giving the companies you invest in a push in the green direction.
Does this sound like an approach that suits you? With Vive, you can start investing accessibly in a way that takes people and the environment into account. You receive a personal investment plan that suits your situation, and which falls within our light green strategy. This way, you can be sure that you are investing with an eye for the world, while still being able to achieve a return. All this without you having to screen all the companies yourself or wade through annual reports.
We are also honest and transparent about what we do. You now know: Vive is an SFDR Article 8 product. This means we make responsible choices and avoid the bad options, but also that we do not claim to save the world completely tomorrow with your investment. However, we do believe that every step counts. Your investment with Vive promotes social characteristics and contributes to your own financial future.
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 take the world around you into account.