The environmental characteristics promoted by the Fund are measured by using various indicators. Applicable PAI indicators are selected based on Annex I of the RTS to Regulation (EU) 2019/2088 in combination with Delegated Directive (EU) 2022/1288 and evaluated for the EU ETS member states as the underlying issuer of the EUAs. With respect to sustainability risk management, Investment Partners draws on the analyses performed by leading providers of sustainability research data. Sustainability risk ratings of the underlying issuer are used as input to analyse, assess and manage sustainability risk of the EUAs. Furthermore, the Fund reports the number of physical EUAs held in the Fund’s portfolio each year (“CO2 Equivalent").
Additionally, the Fund reports the trend of total tCO2 emissions covered by the EU ETS, i.e. the yearly CO2e reduction achievement of the EU ETS. Since the EU ETS was introduced in 2005, emissions have been reduced by around 45% until 2022 in the sectors covered by emissions trading scheme. As an additional measure of effectiveness, the Fund monitors and discloses the time series development of PAI No. 15 “GHG Intensity” as part of the regular PAI disclosure.