How Penco approaches sustainability risks and adverse sustainability impacts in the advice we give you about savings, investment and pensions products:

Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (“SFDR”)

Penco Insurances Ltd t/a Penco, and hereinafter referred to as Penco is authorised by the Central Bank of Ireland as Investment Intermediary under the Investment Intermediaries Act, 1995; and as an insurance intermediary registered under the European Communities (Insurance Mediation) Regulations, 2005.

Copies of our authorisation are available on request. Our authorisation can be verified by contacting the Central Bank of Ireland on 1890-777777. Or on the Central Bank Website www.Centralbank.ie.

Our company registration number is 92510.

As part of our research and assessment of products, Penco examines the Product Providers’ literature to compare financial products and to make informed decisions about these products. Penco will at all times act in the client’s best interests and keep clients informed accordingly. The consideration of sustainability risks can impact on the returns of financial products.

How Penco approaches the integration of sustainability risks when we give you advice about our products:

A ‘sustainability risk’ is defined as an environmental, social or governance event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the investment. In other words, the risk of something taking place which causes a fall in the value of a product we recommend to you. When we give you advice, we use a range of information to help you make an informed decision; this includes:

  • How long you want to save or invest your money for
  • Whether you need your money in an emergency
  • Your attitude to investment risk – i.e. the potential for losses and gains and the volatility of investments
  • Explaining to you how the funds we may recommend are invested and their features, including how sustainability risks are considered in the management in relation to those funds.

Penco does not currently take specific account of sustainability risks in its advice process. How we include sustainability factors in our advice process which will develop over time. This will be largely driven by the products and investment funds available from the Product Producers and how these products factor in sustainability risks.

Consideration of principal adverse impacts on sustainability factors in the advice process

Sustainability Factors are defined as environmental, social and employee matters, respect for human rights, anti-corruption and anti-bribery matters. Financial Advisers, such as ourselves, have an option as to whether to consider the principal adverse impacts of investment decisions on sustainability factors in its advice process. Currently Penco has decided not to consider such impacts separately from our overall risk framework. This decision has been made on the basis of the information available to Penco from the Product Providers.

Under the SFDR, Product Providers are obliged to publish a statement explaining their due diligence policies with respect to the principal adverse impacts of investment decisions on sustainability factors by 30 June 2021. Penco will actively monitor its position and update its processes, as further information becomes available from the selected Product Providers.

You can also find information in relation to both sustainability risks and the principal adverse impacts of investment decisions on sustainability factors on the websites of the Product Providers and investment managers which we work with.

Remuneration Policies and the integration of sustainability risks

Penco has its own Remuneration Policy in place. We follow effective risk management and include specific reference to the integration of sustainability risks where relevant.