Starting in 2024, Ellipsis AM has chosen to rely on the Clarity AI data platform to calculate the alignment of its portfolios with the European taxonomy. Our goal is to better assess the taxonomy alignment of issuers and securities in the portfolio in the medium term for potential engagement. Semi-annual monitoring and annual reviews during the Product Governance Committees will focus on convertible, credit, and diversified funds under Article 8 of the SFDR (excluding mandates).
Presented in 2018 as part of the action plan for sustainable finance, the "Taxonomy" Regulation was adopted by the European Union (EU) in 2020. This foundational text aligns with the goal of achieving carbon neutrality by 2050, as defined in the European Green Deal. The European taxonomy, acting as the EU's "environmental compass," classifies economic activities that have a favorable impact on the environment.
An activity is classified as sustainable if it meets at least one of the following six objectives:
The activity must substantially contribute to one or more of the six objectives without significantly harming the other objectives (the "Do no significant harm" principle). Additionally, it must comply with minimum social safeguards. The European taxonomy covers over 90 economic activities in the EU.