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 0, 1, 2 or 3 stars to award-winning funds based on a comprehensive 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 Forum for Sustainable Investment | 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 | 257 at the end of June 2022 | t | 1 | 9 |
| FNG-Siegel | 4 | Links to funds | https://fng-siegel.org/fng-siegel-2021/ | 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 FNG seal is the high quality standard for Socially Responsible Funds sold in German-speaking countries. It assures investors that a robust SRI management methodology has been applied, giving award-winning funds 0, 1, 2 or 3 stars. | 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 | Objectives | The FNG Label aims to provide a quality standard for sustainable investments and to give reassurance and transparency to investors who can consult detailed information on the website and, through the various quality levels of the label itself, easily choose the best performing investment from an SRI point of view. | d | 1 | 12 |
| FNG-Siegel | 4 | Promoters and administrators | FNG has set up a subsidiary, QNG, which is responsible for carrying out "Quality assurance" on products that have received the label, and therefore for carrying out periodic audits and making proposals for the evolution of the label. | d | 1 | 13 |
| FNG-Siegel | 4 | SRI approach | To obtain the label, funds will have to comply with mandatory minimum requirements, divided into eligibility conditions, exclusion of certain harmful activities and a regulatory screening, and score adequately in the scoring requirements divided into Best in Class, 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 committee 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 | The renewal of the label each year is not automatic. Each fund wishing to renew the label must submit its application to the QNG and undergo a review procedure 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 | As FNG is also the auditor of the Transparent Label, the awarding of the label FNG Siegel requires at the same time compliance with the Transparent Label and thus the completion and publication of the sustainability questionnaire. The "Transparent" questionnaires are published on the FNG website together with the individual fund fact sheets, which are compiled on the basis of the Label checks. | d | 1 | 23 |
| FNG-Siegel | 4 | Focus on periodic checks | The auditor of the FNG seal is Prof. Dr. Timo Busch of the Sustainable Finance Research Group at the University of Hamburg: the team carries out the audits annually. The rating assignments as well as the results of the review process are also assessed by an independent advisory committee with interdisciplinary expertise to check the correctness of the processes and rule 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, which combines expertise in the areas of investment, accounting and strategy. The interdisciplinary approach of the "Management and Sustainability" Department allows QNG to benefit from a first-class research centre to evolve the label over time and define the contents of periodic reviews. | d | 1 | 25 |
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