Sustainable Finance Disclosure Regulation SFDR
Our Sustainability Preferences procedure was last reviewed and updated 16.03.2026
This procedure is operated by Nelson Life Limited trading as “Nelson Life” in relation to services provided under the Consumer Protection Code 2025.
Sustainability Factors
When proving advice, Nelson Life considers the adverse impact of investment decisions on sustainability.
As part of our research and assessment of products, Nelson Life will examine Product Providers literature to compare financial products and to make informed decisions about ESG products, based upon the information available. Nelson Life will at all times act in the clients best interests and keep clients informed accordingly.
The consideration of sustainability risks can impact on the returns of financial products.
Remuneration Policy
We are remunerated by commission and other payments from product producers.
When assessing products, we will consider the different approach taken by product providers in terms of them integrating sustainability risks into their product offering. This will form part of our analysis for choosing a product provider.
Regulatory Background
The European Union (EU) has set out rules, the Sustainable Finance Disclosure Regulations (SFDR) which aim to help investors know whether or not their investment managers consider the potential negative impact of their investment decisions on key sustainability matters like;
Environment
Social and employee issues
Respect for human rights
Anti-corruption and anti-bribery
Before making investment decisions and if an investment is made whether they monitor and try to manage any potential negative impacts. This is intended to help customers make informed decisions about how their funds are invested.
The SFDR regulations set out what economic activities can be considered a sustainable investment and support a more sustainable environment and society, for example; > how companies use resources e.g., energy, renewable energy, raw materials, water > a company’s contribution to climate change through greenhouse gas emissions > the impact on biodiversity > whether companies contribute to tackling inequality or support socially disadvantaged communities There is also a subset of activities that can be called environmentally sustainable under what is known as the EU Taxonomy Regulation.
Although the regulations in this area are still evolving, the activities are very specific:
Climate Change Mitigation – avoiding and reducing greenhouse gas emissions
Climate Change Adaptation – changing behaviours to prevent or minimise the damage climate change can cause
Sustainable use and protection of water and marine resources
Transition to a circular economy – producing items by reusing, repairing, refurbishing, and recycling as much as possible
Pollution prevention and control
Protection and restoration of biodiversity – the variety of animal and plant life in the world
Under the SFDR regulations funds are being classified into one of three categories – Article 6, Article 8 (Light Green) or Article 9 (Dark Green) – based on the fund’s sustainability objective.
> Article 6 funds do not integrate sustainability considerations into their investment process.
> Article 8 funds (also referred to as light green), are funds which promote, among other characteristics,environmental or social characteristics, or a combination of those characteristics, provided that the companies in which the investments are made follow good governance practices.
> Article 9 funds are funds which specifically have sustainable investments as their objective, for example investing in funds whose goal is to reduce carbon emissions.
Suitability Assessment
During the financial advice process, your Nelson Life advisor will carry out a suitability assessment.
A suitability assessment requires consumers to answer questions about their financial circumstances, personal circumstances, and objectives in order for the us to be able to give appropriate advice. Nelson Life are now also required to ask questions about sustainability preferences when advising on Insurance Based Investment Products (IBIPs). It is important to note that your preferences may affect the risk profile and/or expected return of your selected financial investment.
Sustainability Preferences
“Sustainability preferences” can be defined as whether you want consideration to be given to the possible negative impact that your savings, investment portfolio or asset management may have on people, the environment or society.
Questions you will be asked by your Nelson Life advisor
Question 1 - Do you have sustainability preferences?
If your answer is “No” – you will be considered as ‘sustainability neutral’ and understand products with and without sustainability related features will be considered.
If you answer is “Yes” - You will be asked additional questions (we will discuss theses even if you say “No” for educational purposes, as you attitudes may change in the future).
Question 2 - When you think about investing, is sustainability an important element for you ?
Sustainable investing includes investing in companies whose practices and products are conscious of environmental topics like climate change and water usage, and social matters like labour rights and fair wages.
I don’t have a preference
It’s an important element for me. I would like the specific environmental and social impact of my investment to be considered
It’s a fundamental goal for my money. In addition to considering the impact of my investments, I would want to invest some or all of my money in companies that are only involved in sustainable business activities.
Question 3 - Consider you had 10,000 to invest; What is the minimum amount you would want invested into companies addressing climate change, social and governance issues?
Funds typically invest in a broad range of companies. In this case we’re referring specifically about “sustainable investments”; investing in companies that support environmental objectives like renewable energy, or social issues like diversity and inclusion.
I don’t mind
1,000
3,000
5,000
Question 4 - Consider you had 10,000 to invest; What is the minimum amount you would want invested into companies that actively combat climate change?
The EU has set out a stricter definition of business activities that fall into this category. This includes companies whose primary focus is to help the planet through things like forestry, prevent pollution like water treatment and which protect the biodiversity of our environment like the restoration of wetlands
I don’t mind
1,000
3,000
5,000
Summary
Nelson Life will provide you with financial planning and product recommendations based all the information gathered in respect of financial circumstances, personal circumstances, attitude to risk and sustainability preferences.
Sustainability preferences are only a part of your profile, and do not dictate product choice. Where you do not answer the question whether you have sustainability preferences or answers “No”, Nelson Life may consider you as “sustainability neutral” and recommend products both with and without sustainability-related features.
Given that sustainable investments are relatively new to the market, there may not be products available that suit your ‘sustainability preferences’ which are in line with personal and financial circumstances. Where this is the case, Nelson Life will advise you of this and you will be given the option to amend your ‘sustainability preferences’.
Products that have some sustainability features but are not matching your specific sustainability preferences, cannot be recommended to you unless you adapt your preferences
Our Sustainability Preferences procedure was last reviewed and updated 16.03.2026