AIFMD Delegated Regulation: Sustainability Risks and Sustainability Factors

This Regulation amends Delegated Regulation (EU) No 231/2013 as regards the sustainability risks and sustainability factors to be taken into account by alternative investment fund managers (AIFMs). The amendment expressly requires AIFMs to include the assessment of sustainability risks when assessing investment risks, to reflect the capacity to integrate sustainability risks in their internal procedures, systems, internal controls and human resources, and, when identifying conflicts of interest, to cover conflicts arising from the integration of sustainability risks. This Regulation also requires AIFMs to incorporate principal adverse impacts into their due diligence policies, in order to achieve consistency with Regulation (EU) 2019/2088 on sustainability-related disclosures and to ensure the level of investor protection.