Preqin ESG Solutions 19 • SFDR Article 9: Funds whose objective, as de昀椀ned by the European Union's Sustainable Finance Disclosure Regulation (SFDR), is either sustainable investment or reducing carbon emissions. What quali昀椀es as sustainable investment: • Any disclosure or provision of information and an “impression” that the investments pursued by a fund also consider speci昀椀c environmental or social characteristics • Principal Adverse Sustainability Indicators (PASIs) integrated into investment decisions) integrated into investment decisions • SDG: Funds seeking investments in assets aligned with the United Nations Sustainable Development Goals (SDGs). • Climate: Funds focused on supporting the mitigation of climate change. • Sharia Compliant: Faith-based funds compliant with Sharia Law and the Islamic religion’s principles it represents. Sharia funds do not invest in companies that deal with the production of weapons, alcohol, pork, gambling and tobacco. Their key principles include promoting businesses that bene昀椀t society and investments with increased transparency. Sharia rules preclude short-selling and excess leveraging, and prohibit the trading of derivatives or futures. When is a fund tagged? Funds are tagged in the following instances: Other criteria: 1. The tag label (e.g., ‘Impact’) is included in the fund’s name. 2. Marketing materials or other collateral explicitly identify the fund with a tag label. 3. GPs self-declare their fund to be associated with a tag label. ↗ Back to Contents