How will RIAA assess my product and classify it?

Your product’s classification will be assessed against the criteria in our  Assessment Note – Sustainability Classifications. 

For currently certified funds, initial classifications were primarily based on the information provided during the most recent certification assessment, as well as material changes and updates that were provided within the application portal during the certification term. Final reviews of classifications prior to 1 May 2024 have taken the most current website disclosures for the product into account.

For new certification applications, classifications are based on the answers provided in the product’s application, public disclosure, and verified answers to questions during the certification process.  

Classifications are contingent on successful certification or recertification, i.e., they are not available for financial products and services that have not achieved RIAA Certification. They are administered directly by RIAA, and in exceptional circumstances are subject to approvals by a Certification Assessment Panel.

Will all certified products receive a classification?

All RIAA certified investment products have received a current indication of their classification and from 1 May 2024, product providers  have the option to opt in to publish a version of the certification symbol with their classification.

When will I be able to use the classification and where?

Once you have achieved a classification and opted into using it, RIAA will check and confirm your classification at the time of opt in, and provide you with a Certification Symbol that contains your product’s classification as well as detailed guidance within our marketing and style guide to support you in communicating your classification within your product documentation. 

In addition, your classification will be included on our Certified Products List that is shared each month with platforms such as BT Panorama, Hub24, Macquarie Wrap, Insignia Financial, AMP North and CFS.

How do I dispute the outcome?

Prior to launching the Sustainability Classifications Initiative, RIAA completed initial classifications of certified products in early December 2023 and shared the outcomes with the product issuers. An opportunity for reassessment was open until 9 February 2024. Between then and the launch of the initiative (1 May 2024), RIAA has reviewed each certified product’s classification and provided further information to product issuers where their classifications have changed.  

Re-assessment outcomes have now been finalised and future reclassification will occur at the product’s next recertification, unless the product undergoes a material change that leads to a review of certification in the interim. 

For all new product applications following the launch of the initiative, classifications are conducted by the RIAA team during the certification process. You will have an opportunity to engage with your analyst throughout the assessment. Once certified and classified, should you wish to appeal the outcome, please email RIAA’s Head of Certification, Shalini Samuel at  shalini@responsibleinvestment.org  to arrange a discussion. 

What can I do to shift my classification?

Each of RIAA’s sustainability classifications corresponds to a product type and/or investment style that is uniquely placed to serve our market.  

If you are considering making changes to your product to achieve a different sustainability classification, the key to making this shift would be to pay close attention to our  detailed assessment criteria  to uncover some quick as well as longer-term wins. 

In brief, when determining the classification of a product, we consider:

• Whether the product adopts a negative screening approach to responsible investment.
  
• Whether there are positively themed sustainability objectives, and whether they are prominently stated and/or binding.

• Alignment of investment selection and ownership activities with the stated sustainability objectives.

• Whether performance against stated objectives and targets is tracked and reported.

For positively screened/tilted/themed products, quick wins could include clearer statement of your sustainability objective(s), better alignment of your stewardship activities with your sustainability objective(s), and disclosure of progress against your sustainability objective(s). 

In some cases, changing your product’s classification could be a longer-term endeavour that requires internal buy-in to adjust your investment selection and stewardship approach.

As a member of RIAA, you have access to a suite of benefits that can support you on this journey.

Will I automatically get reassessed at the point of recertification?

Yes. Upon recertification your product will be re-classified during the recertification assessment.  

Should a mid-cycle review of your product’s certification be required due to material factors, such as changes to product features, independent verification panel findings, or outcomes of a product claims spot check, reclassification may occur at that time. 

Can I lose my classification?

Once classified, your product classification will be tied to the product’s RIAA Certification. The classification will be lost if the product is no longer certified.

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Is it aligned with my certification dates?

For all currently certified products, your classification will be valid from our launch date in early May 2024, to the expiry date of your Trademark License Agreement. 

For all certifications that occur from our launch date in early May 2024, classifications will be aligned with certification dates in accordance with your Trademark License Agreement. 

I am applying for certification now, will I get classified?

A classification will accompany successful completion of RIAA Certification.

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