ESG SDDS Wiring-Guide

Share of investments in assets linked to extraction, processing or use of various fossil fuels. 'Companies active in the fossil fuel sector’ means (i) companies that derive any revenues from exploration, mining, extraction, distribution or refining of hard coal and lignite; (ii) companies that derive any revenues from the exploration, extraction, distribution (including transportation, storage and trade) or refining of liquid fossil fuels; and (iii) companies that derive any revenues from exploring and extracting fossil gaseous fuels or from their dedicated distribution (including transportation, storage and trade) (ref: SFDR). The AUM percentage reported in these fields reflects the AUM of the vehicle which is exposed to fossil fuels.
 

"This indicator calculates the portion of the vehicle’s total AUM exposed to fossil fuel activities. Exposure should be calculated as the proportion of AUM attributable to assets leased to, operated by, or otherwise occupied by entities engaged in fossil fuel activities.
For multi-tenant or mixed-use assets, the exposure should be apportioned pro-rata based on the share of income, floor area, or asset value linked to the relevant occupant, applying the same approach consistently across the portfolio (ref: GRESB). For example, if an industrial asset includes a gas station operated by one tenant, representing 2% of total rental income, only that 2% share of the asset value should be considered exposed to fossil fuel activities, not the entire asset value. 
The calculation should be based on Gross Asset Value (GAV) and may use sources such as tenant declarations or lease agreements. The valuation date for AUM figures should be stated. 
Note 1: In line with the EU SFDR Regulatory Technical Standards (Annex I, Principal Adverse Impact indicators 4 and 5), exposure should include:
•    Companies deriving revenues from the exploration, extraction, distribution (including transportation, storage, and trade), or refining of hard coal and lignite;
•    Companies deriving revenues from the exploration, extraction, distribution (including transportation, storage, and trade), or refining of liquid fossil fuels (oil);
•    Companies deriving revenues from the exploration, extraction, distribution (including transportation, storage, and trade), or from dedicated infrastructure related to gaseous fossil fuels (natural gas).
Note 2: Managers should disclose the thresholds applied (e.g. any materiality cut-off such as >0% vs >5%) and apply them consistently. This supports comparability with SFDR reporting and avoids underreporting marginal exposures."