It is the ability to meet the needs of the present without compromising the ability of future generations to meet their own needs. It requires us to balance environmental protection, social wellbeing, and economic growth.

Cantor Fitzgerald now seeks to incorporate your sustainability preferences (if any) when providing you with investment advice or portfolio management. This aims to ensure that our investment recommendations are meeting your needs, objectives and financial circumstances

Suitability is making sure your investments are the right fit for you. For this, we require information such as your knowledge of and experience in investments, your risk profile, your investment objectives including investment time horizon, financial circumstances and your sustainability preferences

Sustainability preferences are grouped into three categories, sustainable investment (SI), Taxonomy-aligned (TA) investments, and principal adverse impacts (PAIs). Where you express a sustainability preference, you will be asked to select a minimum percentage of your portfolio that you wish to align with SI and TA, and whether you’d like to monitor PAIs in your portfolio.

The Sustainable Finance Disclosure Regulation (SFDR) defines SI as investment that has been screened for good governance practices, its economic activity contributes to a social/environmental objective and does not harm people or the planet.

Investments that meet environmental standards set out in the EU Taxonomy Regulation, which is the rulebook describing how an economic activity makes a substantial contribution to an environmental objective while ensuring no harm to people and the planet.

Taxonomy aligned investments follow science-based criteria (defined by the EU Taxonomy Regulation) and make a substantial contribution to an environmental objective. The definition of SI by the SFDR is broader and allows an investment manager to define how SI is achieved through criteria regarding good governance, economic activity that contributes towards a social/environmental goal and do not harm people or the planet.

• They are a selection of datapoints describing the negative impacts from an investment decision or advice on various sustainability factors covering environmental, social and governance issues. Examples include the carbon footprint of your portfolio, board diversity, exposure to controversial weapons, human rights violations and more. See the full list of PAIs you can monitor here.

You can select the themes of PAIs that you’d like to monitor, namely climate change, environmental (e.g., biodiversity, water), social and governance factors. We will then monitor those factors over the next year and produce a statement of your portfolio where you can see how PAIs performed in your portfolio.

If you don’t have sustainability preferences, you are considered sustainability neutral, meaning that sustainable investments that meet your other suitability criteria can still be offered to you.

Yes, our Relationship Managers will clearly explain the sustainability portion of the suitability process.

The role of the relationship manager is to help you understand terms and concepts regarding sustainability preferences so you can make an informed decision, but they will not influence your response either way.

You can do this during suitability assessment and when you instruct a trade which may diverge from your sustainability preferences. This adaption will only refer to the trade/product recommendation in question, not to your investment profile in general. This will be documented in the suitability report that you will receive.

If you wish to invest in a product/fund outside your sustainability preferences, and that product meets your other suitability requirements such as risk tolerance, then you can proceed once you have adapted your sustainability preferences for this trade.