This disclosure is provided in compliance with Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the investments services sector (the “Sustainable Finance Disclosure Regulation” or “SFDR”).
The EU Sustainable Finance Disclosure Regulation aims to enhance transparency in financial markets by ensuring investors have clear, comparable and reliable information on the sustainability characteristics and risks of their investments.
In accordance with articles 3 and 4 of the Regulation, Alpha FX Europe Limited – in its capacity as a financial advisor – is committed to providing transparency regarding its approach to sustainability risks and principal adverse impacts (PAIs).
Sustainability Commitment
Alpha Group is committed to sustainability and, while the Group’s operations have inherently low emissions, we are proud to be a carbon-neutral company and have managed to offset all our carbon emissions since 2021. This commitment reflects our broader efforts to contribute positively to environmental sustainability.
Nature of Services and Sustainability Risk Integration
When it comes to regulated services, Alpha primarily executes client orders related to over-the-counter (OTC) derivatives, including options on foreign exchange (FX), interest rates (IR) and commodities. These financial instruments are primarily used for hedging purposes and do not inherently have sustainability characteristics or risks.
Under SDFR, sustainability risk is defined as an environmental, social or governance event or condition that, if it occurs, could result in an actual or a potential material negative impact on the value of the investment.
Given the nature of the financial instruments and services we offer, we currently do not integrate sustainability risks into our investment decision-making processes. Our focus remains on providing efficient and effective execution of client orders to achieve the best outcomes for our clients. As such, we have not developed a standalone sustainability risk policy at this time, as we do not consider ESG factors to materially affect the performance of the financial instruments we provide.
Principal Adverse Impacts (PAI)
PAI refers to the negative impacts that investment decisions and advice may have on sustainability factors such as environmental, social, and employee matters, respect for human rights, and anti-corruption and anti-bribery issues.
As we primarily deal with OTC derivatives, we do not currently assess or consider the principal adverse impacts that may arise from investment decisions in the provision of advisory services. We believe that the financial instruments we offer are unlikely to harm the environment or society directly.
However, we remain committed to considering ESG factors in our internal operations. These factors are integrated into our processes, such as procurement and due diligence when engaging third-party service providers.
We also continuously monitor regulatory developments and industry best practices. Our policies and practices are reviewed regularly, at least annually, and we will update our disclosures if there are changes to our business model or the financial instruments we offer that would make the integration of sustainability risks or PAIs relevant.
Remuneration Policies
Our remuneration policies at Alpha FX Europe Limited are designed to align with our overall business strategy and regulatory requirements. While our policies emphasize high governance standards, they do not currently incorporate sustainability risks for the reasons explained above. However, we remain open to future developments and may review and update our approach to remuneration in line with evolving industry expectations and regulatory frameworks.