Sustainable investing in Millennium TFI

Millennium TFI has joined the group of pioneers of the Polish ESG investment market and offers Subfunds based on ESG sustainability criteria. Offering products promoting ESG aspects is one of the key elements of the Millennium 2024 strategy, consistently implemented by the Bank Millennium Group in Poland.

- In Europe and around the world, investors are increasingly willing to base their investment decisions on sustainability criteria. We observe that this trend has been growing dynamically in recent years - especially in Europe. This is primarily due to the challenges facing our world and society, as well as the resulting legal regulations. At Bank Millennium Group, we are of the opinion that the private sector, and especially companies managing financial assets, are obliged to integrate ESG factors in the processes of selecting assets for investment portfolios. This is one of the pillars of our business strategy for the coming years. In this way, we indirectly contribute to change for the better. At the same time, we believe that in the long run, taking into account social, environmental and management factors will have an impact on the financial results of companies and the cost of raising capital by them - says Krzysztof Kamiński, member of the Management Board of Millennium TFI.

Millennium TFI has transformed three Sub-funds separated under the Millennium Specialist Open Investment Fund in accordance with the requirements of Article 8 of the SFDR Regulation*. They promote environmental, social and compliance with corporate governance (as so-called light green products) by including them in the criteria for the selection of investments and in the investment restrictions applied. Customers who want to support sustainable development with their investment decisions can choose products from the Millennium TFI offer.

- The role and ambition of Millennium TFI as a responsible investment fund management company is to increase the value of assets taking into account not only economic factors, but also supporting sustainable development and transformation of our clients. That is why it is very important for us to enable them to invest in securities that promote environmental and social aspects. Thus, we join the group of pioneers of the ESG investment market in Poland - adds Krzysztof Kamiński.

Sub-funds that meet the ESG criteria are available both in Bank Millennium branches and via electronic channels - Millenet online banking and the bank's mobile application. Clients can choose from three Sub-funds, constructed in the formula of a fund of funds:

• Subfundusz Plan Spokojny - investing predominantly in global debt instruments.
• Subfundusz Plan Wyważony - investing to a sustainable extent in global debt and equity instruments.
• Subfundusz Plan Aktywny - investing predominantly in global equity instruments.

As part of the offer of the above Sub-Funds, sustainability issues (ESG) are assessed as a risk to the value of the investment. Issuers whose strategy is built on the basis of good ESG practices may be treated as entities with a reduced level of investment risk, and thus with increased investment attractiveness. Investment risk shall be assessed under the internal 'ESG Risk Rating' system and shall take into account ESG ratings published by independent agencies and analysts, issuers' reports on the applicable ESG rules, the type of industry in which the issuer operates and other publicly available information that may be a source for the ESG assessment of the issuer.

Each of the above-mentioned Sub-Funds invests min. 30% of assets in other "green" investment funds that meet the criteria of the SFDR Regulation. Additional limits have also been introduced to limit the share of funds (instruments) with low or no ESG ratings, as well as restrictions for issuers that do not apply good practices.

Changes in the product offer of Millennium TFI are a key element of the adopted strategy of the Bank Millennium Group. In the field of ESG, the bank develops and promotes activities responding to environmental and social challenges. It also focuses on the implementation of projects aimed at redirecting the capital stream towards sustainable investments and environmentally sustainable entities.

Millennium TFI S.A. is a modern investment company whose aim is to provide clients with attractive and effective investment solutions. The Company monitors financial markets in order to search for solutions that are an attractive form of asset investment. The foundation of Millennium TFI S.A. is compliance with ethical and business standards and professional satisfaction of customer needs and expectations. Millennium TFI S.A. together with Bank Millennium belongs to the Millennium BCP group operating on international markets.

* Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability‐related disclosures in the financial services sector (Sustainable Finance Disclosure Regulation - hereinafter "SFDR")