FNG Label: five Ethos funds awarded the maximum three stars

All of the equity investment funds offered by Ethos and its banking partners that underwent the certification process developed by the German Sustainable Investment Forum (FNG) obtained the maximum three stars this year. These are the following funds:

• Vontobel Fund (CH) – Ethos Equities Swiss Mid&Small (managed by Vontobel)

• Ethos II – Ethos Swiss Sustainable Equities (managed by Banque Cantonale Vaudoise)

• Ethos – Equities Sustainable World ex-CH (managed by Banque Cantonale Vaudoise)

• Clartan – Ethos ESG Europe Small & Mid Cap (managed by Clartan Associés)

• BCV Fund (Lux) – Ethos Climate ESG Ambition (managed by Banque Cantonale Vaudoise)

While four of those funds had already the label in previous years, this is a first for the ‘Climate ESG Ambition’ fund, launched in June 2024. "We are very pleased that this new fund, which uses the positive impact methodology developed by Ethos to invest primarily in companies that contribute to the ecological transition and the fight against climate change, has been awarded the maximum three stars in its first year", emphasises Vincent Kaufmann, CEO of the Ethos Foundation. "This certification is in addition to the SFDR Article 9 categorisation and confirms that it meets the highest standards of socially responsible investment."

"We are very proud to have been awarded the FNG Label", says Martin Vlcek, fund manager at BCV. "This is further proof of the high level of professionalism and transparency that characterises our approach to sustainability in the management of our investment fund."

Nuclear power, coal and arms are automatically excluded

Established in 2015, the FNG Label is a quality standard for sustainable investment funds. It is primarily awarded in German-speaking countries and is subject to annual renewal. The independent audit and assessment is carried out by the non-profit scientific association FIRST, in collaboration with Advanced Impact Research, a spin-off of the University of Hamburg, under the scientific responsibility of Prof. Timo Busch.

Certification is based on a questionnaire of 111-questions assessing investment style and process, ESG research capabilities, engagement programmes, as well as reporting, controversy monitoring, stakeholder involvement and the management company. The methodology requires a minimum level of quality (transparency, consideration of human and labour rights, the environment and anti-corruption, in accordance with the UN Global Compact). All fund positions must be analysed according to sustainability criteria, a clear strategy is required, and several sectors of activity must be excluded from investments (nuclear, coal mining and power generation, fracking, oil sands, and weapons).

The star system reflects quality that goes beyond the minimum requirements, as well as the potential for direct and indirect impact. Funds that excel in institutional credibility, product standards and portfolio strategy (security selection, engagement, key indicators) can earn up to three stars. The focus is as much on portfolio construction as it is on active voting and shareholder dialogue.