Responsible investing at Vive: what does our light green approach mean?

Did you know that as an investment product, Vive has an SFDR Article 8 rating? In other words, we are light green. That may sound abstract, but it simply means that we take sustainability seriously in our investment approach. In this blog, we explain in a clear and accessible way what that SFDR classification means, why Vive is light green (and not a dark green provider), and how our sustainability policy works in practice. So you know exactly how we invest responsibly - without complicated jargon.

SFDR: gray, light green or dark green?

The Sustainable Finance Disclosure Regulation (SFDR) is a European directive that classifies financial products by sustainability. Simply put, there are three color groups:

• Article 6 (gray): These investments do not take specific sustainability criteria into account. They are, as it were, "colorless" in terms of sustainability - sustainability plays no significant role here. So there is no steering internally in this area, nor are the investment products you purchase through that party tested against ESG criteria.
• Section 8 (light green): These investments do take environmental and social characteristics into account, but sustainability is not necessarily the only goal. Consider funds that select companies based on ESG (Environment, Social, Governance) factors or exclude certain harmful companies. They are "light green" because they are clearly greener than gray, but not completely green to the core.
• Item 9 (dark green): These are the hardcore sustainable investments. Dark green funds have sustainability as an explicit goal in itself. For example, they invest exclusively in projects or companies with a measurable positive impact on climate or society. These funds are as green as a lush forest: sustainability is central to everything they do. In practice, this is still difficult to maintain, but it is a good goal and shows that we are all investing in the right direction.

Investments that do not fall into the green categories are thus considered gray (article 6). Vive deliberately chooses not to invest in gray investments, but rather in light green (Article 8) investments. Our investment portfolio falls entirely into that light green category. But why "only" light green and not dark green? We are happy to explain.

Why is Vive light green and not a dark green provider?

You may be wondering: if sustainability is so important to Vive, why don't we go all-in as dark green (Article 9)? In short, we combine sustainable investing with a broad, balanced investment strategy. Article 9 funds must have a specific sustainable objective and invest almost exclusively in sustainable projects or companies. That sounds nice, but also comes with limitations - less diversification, fixed hoarding terms or higher fees, for example - and is not suitable for every investor.

Vive opts for a practical middle ground: we promote sustainable and social features (which is why we are light green), but we do not have a strict obligation to be only in 100% sustainable investments. This allows us to offer a well-diversified portfolio with an eye for both return and responsibility.

Moreover, some asset classes are difficult to label as "green." One example is government bonds. Government bonds are important for a stable portfolio, but are rarely given a sustainability label (they often fall under Article 6, as countries do not receive an ESG rating like corporations do). Because Vive also invests in these types of investments for healthy diversification, we can't say that everything is dark green. We are honest: we do not promise a completely dark-green world trip, but we do promise a very deliberately chosen light-green route.

So light green means that we take sustainability seriously, without pretending that every euro is a direct impact investment. That fits with our philosophy: investing as sustainably as possible within sensible frameworks. But what exactly do we do? Below you can read how our sustainability policy works.

How does Vive invest responsibly?

"Light green" is not just a sticker for us - it's in our whole approach. We have a comprehensive sustainability policy in place, but we keep it understandable here. Our approach revolves around three pillars: exclusions, ESG integration (best-in-class selection) and active ownership (engagement & voting policies). This ensures that your money does not end up in questionable businesses, but rather in sustainability leaders, and that we continue to push companies to become greener and more social.

Exclusions and social characteristics: what we don't do

First, we resolutely exclude certain investments. Vive does not invest in "wrong" sectors or companies that are at odds with sustainability and social responsibility. For example, we do not invest in companies involved in controversial weapons (think cluster bombs or nuclear weapons). We also exclude companies that generate a large part of their turnover from tobacco production. We also avoid companies that are systematically involved in serious controversies in the areas of the environment, human rights, labor rights or corrupt governance. Companies that violate the UN Global Compact principles(basic principles for human rights, labor, the environment and anti-corruption) are also excluded.

With this strict exclusion policy, we ensure as best we can that your money does not contribute to activities that are harmful to people or the planet. By doing so, we also promote certain social characteristics: for example, by excluding weapons and human rights violations, we promote peace, security and respect for labor rights indirectly through our investments. Moreover, excluding helps avoid the biggest negative effects of investments. (In technical terms, we pay attention to Principle Adverse Impact (PAI) indicators - these are indicators of negative impact, such as greenhouse gas emissions or controversial weapons. Through our rigorous selection, we limit those adverse impacts as much as possible from the start).

In short: what we don't do is at least as important as what we do. No weapons, no tobacco, no notorious evildoers - that's step one of responsible investing at Vive.

ESG integration and best-in-class selection: picking out the frontrunners

In addition to excluding bad things, we focus on íntegrating sustainability into everything we do include. ESG integration means that in our investment choices, we pay attention to how companies and funds score on Environment, Social & Governance. It's actually a fancy term for a simple idea: looking not only at the financial side, but also at a company's impact and behavior.

Specifically, Vive only selects funds that excel in sustainability within their category. We also call this a best-in-class approach: we choose the most sustainable candidates within each asset class. How do we do that? Among other things, by looking at ESG ratings (ratings for sustainability). Our rule of thumb is that funds must have at least an MSCI ESG rating of BBB or higher. This means that the underlying companies score average to good on sustainability. So no underperformers, but at least the middle or leaders in their sector.

Moreover, we prefer to invest in funds that themselves have an SFDR rating of at least Article 8 (light green) - with a strong preference for Article 9 funds if at all possible. In other words, we look for fund managers who, like us, are committed to sustainability. That way you get a portfolio of companies that have their act together, from climate policy to employee rights. In this way, we build an investment portfolio that is not only financially sound, but also one step ahead in terms of sustainability.

Active ownership: engagement and voting rights

Sustainable investing doesn't stop with choosing what you do and don't invest in. Equally important is what happens next with the companies we invest in. That's why we make sure the funds in our portfolio engage in active ownership. Put simply, this means that they use their influence as shareholders to make companies more sustainable and responsible.

Engagement is a key word here: fund managers engage with the companies they invest in. Suppose a company is lagging on carbon reduction or workforce diversity, for example, these funds will push for improvement. They ask critical questions, put pressure on management and monitor progress.

There is also the voting policy: Vive invests only in funds that actively exercise their voting rights at shareholder meetings. As shareholders, they can vote on important decisions - think climate reports, appointment of more sustainable directors, or rewarding clean rather than polluting activities. By actively voting, these funds allow their voice (and thus indirectly your invested money) to count toward a more sustainable course for companies. So we don't sit passively on the sidelines; we actively participate through our funds to drive positive change.

This active share ownership means that sustainable investing at Vive is not just about fine words. We link actions to our principles by constantly giving companies you invest in a push in the green direction.

Also start sustainable investing with Vive?

Does this sound like an approach that suits you? At Vive you can start investing in a way that takes people and the environment into account. You get a personal investment plan that suits your situation and falls within our light-green strategy. So you know for sure that you are investing with an eye for the world, but where you can still make a return. All this without you having to screen every company or go through every annual report yourself.

In doing so, we are honest and transparent about what we do. You know now: Vive is light green. That means we make sustainable choices and avoid the bad options, but also that we don't claim to save the world completely tomorrow with your deposit. We do believe, however, that every step counts. Your investment with Vive contributes to better business practices and less harmful impact - as well as to your own financial future.

Are you ready to put your money to work for you feeling good? Simply open an account in our app and discover what investing with the right balance of return and responsibility looks like. This way, you not only build your wealth, but also a little d