FNG Siegel

The FNG Label is a high quality standard for Socially Responsible funds sold in German-speaking countries. It assures investors that a robust SRI management methodology has been applied, awarding award-winning funds 0, 1, 2 or 3 stars according to an articulated "scoring" method.

Summary data :

label	ID	Topic	Description	Mode	Enabled	Order
FNG-Siegel	4	Label	FNG-Siegel	t	1	1
FNG-Siegel	4	Nationality	Germany - German	t	1	3
FNG-Siegel	4	Management	Label managed by the German Sustainable Investment Forum	t	1	4
FNG-Siegel	4	Label Type	SRI	t	1	5
FNG-Siegel	4	Website	https://fng-siegel.org/	t	1	7
FNG-Siegel	4	Market	The label covers all German-speaking countries (Germany, Austria, Switzerland, Liechtenstein)	t	1	8
FNG-Siegel	4	Products	275 to September 2024	t	1	9
FNG-Siegel	4	Links to funds	https://fng-siegel.org/fng-siegel-2024/	t	1	10
FNG-Siegel	4	Criteria	https://fng-siegel.org/kriterien/	t	1	15
FNG-Siegel	4	Periodicity	Annual	t	1	21

Analytical data :

label	ID	Topic	Description	Mode	Enabled	Order
FNG-Siegel	4	Description	The mandatory criteria that funds must meet in order to obtain the label start with "institutional credibility" (focus on governance and SRI activities) and a minimum product standard that the fund must guarantee; and then extend to assessments of Portfolio: the funds will, in fact, have an obligation to pursue an ESG integration strategy, to have Exclusion criteria (effective exclusion processes regarding issuers active in sectors considered unsustainable), to practice Regulatory Screening (The fund cannot invest in Society or states that risk contributing to the violation of international treaties, fundamental rights, human rights, or that risk causing serious damage to the environment and fueling corruption), conditions on management processes (public sustainability strategy ESG analysis of all securities on Portfolio; adherence to the "Tranparent" label) and give public access to detailed sustainability information on a public site.	d	1	6
FNG-Siegel	4	Genesis and development	The FNG Label is the quality standard developed by the German-language "Forum for Sustainable Investment," a professional association with over 200 members; it extends the scope of the "Transparent" Label that the Association requires of candidate mutual funds. The label FNG Siegel was introduced in 2015 after a three-year development process with stakeholders from academia and civil Society and continues to evolve annually.	d	1	11
FNG-Siegel	4	Goals	The FNG Label is intended to provide a quality standard for sustainable investments and to give reassurance and transparency to investors who through the site can consult detailed information, and through the various quality levels of the label itself, easily choose the best performing investment from an SRI perspective	d	1	12
FNG-Siegel	4	Promoters and administrators	FNG has opened a subsidiary, QNG which is in charge of carrying out "Quality assurance" on the products that have received the label, and then performing periodic audits and making proposals for Label evolution.	d	1	13
FNG-Siegel	4	SRI Approach	To obtain the label, funds will have to meet mandatory minimum requirements, divided into eligibility conditions, exclusion of certain harmful activities, and a regulatory screening, and score appropriately in the scoring requirements divided into Best in Class Approach, Thematic Approach, Engagement, and Impact Investing	d	1	14
FNG-Siegel	4	Mandatory Criteria	The mandatory criteria that funds must meet in order to obtain the label are divided among : the obligation to pursue an ESG integration strategy, to have Exclusion criteria (effective exclusion processes regarding issuers that are active in sectors considered unsustainable), to practice Regulatory Screening (The fund cannot invest in Society or states that risk contributing to the violation of international treaties, fundamental rights, human rights, or that risk causing serious damage to the environment and fueling corruption), conditions on management processes (public sustainability strategy; ESG analysis of all securities on Portfolio; adherence to the "Tranparent" label) and give public access to detailed sustainability information on a public site.	d	1	16
FNG-Siegel	4	Additional criteria	There is also a scoring system through which funds can gain recognition in the form of 1, 2 or 3 stars : the evaluation is carried out at 360 degrees and includes 1) institutional credibility 2) product standards 3) how Portfolio a) selection strategy is managed ; b) dialogue with holdings in Portfolio c) management of ESG KPIs. Total scoring on a 100 basis results in the labeling of "Basic" < 25 ; "1 star" < 50 ; "2 stars" < 70 ; "3 stars" from 70 points and above.	d	1	17
FNG-Siegel	4	Allocation process	Society who wish to become certified must register on the FNG website and fill out the online questionnaire providing the required evidence. An analysis team from the University of Hamburg analyzes the questions and provides a report to the Committee FNG Siegel, an advisory board that includes nonprofit associations, members of Society civil that verifies the accuracy and soundness of the labels assigned to applicant funds, and educates any complaints.	d	1	20
FNG-Siegel	4	External certification	Renewal of the label each year is not automatic. Each fund wishing to renew the label must submit its application to QNG and be subjected to a review process by the University of Hamburg, which will ensure that the answers to the questionnaire are demonstrable by objective processes and evidence.	d	1	22
FNG-Siegel	4	Focus on transparency	Since FNG is also the auditing body for the "Transparent" Label, the awarding of the label FNG Siegel simultaneously requires compliance with the Transparent label and thus the completion and publication of the sustainability questionnaire. The "Transparent" questionnaires are published on FNG's website along with the individual fund fact sheets, which are compiled on the basis of the verifications performed by the Label.	d	1	23
FNG-Siegel	4	Focus on periodic checks	The auditor of the FNG seal is Prof. Dr. Timo Busch Chair of the Sustainable Finance Research Group at the University of Hamburg: the team conducts audits annually. The rating assignments as well as the results of the audit process are also evaluated by an independent advisory committee with interdisciplinary expertise in charge of checking the correctness of the processes and ruling on any complaints.	d	1	24
FNG-Siegel	4	Related parties	QNG has signed a partnership with the Department of Sustainable Finance at the University of Hamburg, combining expertise in the areas of investment, accounting and strategy. The interdisciplinary approach of the Department's "Management and Sustainability" allows it to benefit from a first-rate research hub to evolve the label over time and define the content of periodic reviews.	d	1	25

FNG Siegel

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