Sustainability in investment advisory service

In accordance with its corporate philosophy, OTP banka d.d. (hereinafter the Bank) strives to increase sustainability and corporate social responsibility across all available levels, acting as the driver of positive and needed changes that can have an impact on the financial system.

Hence, as an investment consulting services provider, the Bank has adopted the Policy on the integration of the sustainability risks into the investment advisory process, which lays out the method of including sustainability risks, i.e. ESG risks, which could adversely affect the performance of a product within the service, into the investment consulting process.

In the context of European Union policy, ESG risks are the product of negative financial effects from materialisation of adverse environmental, social and governance events, and they are made up of:

  • Environmental risks, which represent climate and environment‐related adverse impacts.

•         Social risks that materialise due to lack of respect for basic human rights, poor employment relations, unfair or non-transparent practices, and

•         Governance risks that arise from poor or non-transparent company management measures, including lack of rules on anti-money laundering and anti-corruption.

When selecting products to include into its investment consulting service, OTP banka will always see to that the manufacturers of such products adhere at least to the same standards and principles as the ones applied by OTP banka upon provision of the investment consulting service. It will also make sure and favour the products that match the client's profile, while having less adverse sustainability impacts.

As regards the investment consulting framework it set up, and having in mind the range of products made available by the Bank to its clients, for the time being, for the purpose of measuring and assessing sustainability risk, the Bank is going to use the data made available to it by the manufacturers i.e. the companies with which the Bank actively cooperates (hereinafter the Partners). 

If the Partners include sustainability risks into their products and make such pre-contractual disclosures, the Bank will consider such characteristics when selecting products for its investment consulting process, making all the information on the products available to clients and providing detailed explanations upon provisions of the service.

In order to meet all relevant regulatory requirements, the Bank’s pre-contractual disclosures (Information to investors in financial instruments)  contain descriptions of how the Bank included sustainability risks into the process of provision of investment consulting service.


Statement on principal adverse impacts of investment decisions on sustainability factors

Sustainability related disclosure in the financial services sector (SFDR)