Article 7
Description of policies to identify and prioritise principal adverse impacts of investment decisions on sustainability factors
1.
In the section ‘Description of policies to identify and prioritise principal adverse impacts on sustainability factors’ in Table 1 of Annex I, financial market participants shall describe their policies to identify and prioritise principal adverse impacts on sustainability factors and how those policies are kept up to date and applied, including all of the following:
(a)
the date on which the governing body of the financial market participant approved those policies;
(b)
how the responsibility for the implementation of those policies within organisational strategies and procedures is allocated;
(c)
the methodologies to select the indicators referred to in Article 6(1), points (a), (b) and (c), and to identify and assess the principal adverse impacts referred to in Article 6(1), and in particular an explanation of how those methodologies take into account the probability of occurrence and the severity of those principal adverse impacts, including their potentially irremediable character;
(d)
any associated margin of error within the methodologies referred to in point (c) of this paragraph, with an explanation of that margin;
(e)
the data sources used.
2.
Where information relating to any of the indicators used is not readily available, financial market participants shall include in the section ‘Description of policies to identify and prioritise principal adverse impacts on sustainability factors’ in Table 1 of Annex I details of the best efforts used to obtain the information either directly from investee companies, or by carrying out additional research, cooperating with third party data providers or external experts or making reasonable assumptions.