The Quality Standard
for sustainable investing
The Quality Standard stipulates a set of portfolio and process level requirements. A financial product should at least fulfil these requirements to receive the label. They are a mix of exclusion, impact, engagement, transparency and accountability.
Independent supervision by the Towards Sustainability Labelling Agency (CLA) protects the integrity of the Quality Standard and the label.
Do not harm
ESG due diligence using the ‘double materiality' perspective
Each investment is screened for its potential positive or negative impact on sustainability issues like nature, labour conditions and good governance (ESG). Additionally, the possible impact of sustainability events like climate change, social unrest or legal controversies on the performance of the investments, is analysed.
We exclude certain sectors
No money for weapons, tobacco, coal, unconventional oil & gas and laggard oil & gas and electricity utilities.
International norms and standards
Investee companies must not violate high-level normative frameworks like the UN Global Compact, the UN Guiding Principles on Business and Human Rights, the OECD Guidelines for Multinational Enterprises, and the ILO Conventions.
Positive impact
Best-in-class or Best-in-universe
Investing in companies with the highest ESG ratings, overall, per industry, sector or region.
Sustainability themed investing
Investing in companies or sectors related to a specific sustainability theme, e.g. clean energy, health, sustainable agriculture, diversity.
Impact investing
Investing in companies or projects dedicated to creating concrete and measurable positive social or environmental impact through their products or services.
Outperforming a benchmark
Building the investment portfolio in such a way that overall it scores better than a benchmark on one or more ESG indicators, e.g. carbon intensity.
Engagement
Engaging in a dialogue with companies and/or exercising voting rights in the companies invested in.
However, following this strategy as the only additional strategy is not sufficient.
Solidarity or charity
Donating part of the return of the portfolio or of the management fees to a charity or a good cause.
However, following this strategy as the only additional strategy is not sufficient.
Other strategy
Another way to favour more sustainable issuers in the selection process, if recognized by the CLA.
Transparency
Text of the Quality Standard
Consult the full text of the new 2023 version of the Quality Standard (QS23). This text consolidates and updates all previous versions. It came into force in January 2024 for newly labelled products and in June 2024 for products already labelled.
Consult the full text of the original 2019 Quality Standard (QS19) including all detailed criteria. Or the technical document with the 2021 revisions (QS21) to the original text.