CISCO and Schroders collaborate to deliver ESG solutions for cautious to dynamic risk profiles

The Cyprus Investment and Securities Corporation (CISCO), a wholly owned subsidiary of the Bank of Cyprus Group, on Friday announced a strategic partnership with global asset manager Schroders to launch a new range of sustainable investment portfolios.

According to an official announcement, these portfolios are tailored primarily for institutional investors, as well as for other investors seeking solutions aligned with environmental, social, and governance (ESG) principles.

“This collaboration marks a significant development in the Cypriot financial services sector,” the Bank of Cyprus stated.

It explained that it brings together CISCO’s extensive experience in managing institutional mandates with Schroders’ global expertise in sustainable and impact investing.

The new investment products are designed to meet growing demand for responsible investing that balances ESG objectives with long-term financial performance.

Moreover, the bank pointed out that the sustainable investment portfolios are structured with well-defined sustainability metrics.

They are subject to ongoing monitoring for both financial and non-financial performance, while the portfolios are also aligned with international best practices in responsible investing.

The bank further explained that they have been developed to suit a broad spectrum of investor profiles, ranging from cautious to balanced, growth and dynamic risk appetites.

“Our mission is to consistently deliver excellence not only in portfolio returns but also in the positive impact we generate,” said Christos Kalogeris, General Manager at CISCO.

“Through this partnership with Schroders, we are proud to offer investment solutions that reflect both performance and principle,” he added.

He further mentioned that “this enables our clients to achieve sustainable growth while maintaining transparency and accountability”.

On his part, Dimitrios Batzis, Head of Southern CEE and Mediterranean countries at Schroders, stated that this collaboration will facilitate the offering of sustainable solutions tailored to Cyprus’ investment needs.

“Through the synergy between Schroders’ advanced proprietary sustainability investment models and CISCO’s market expertise and local leadership, we are able to offer a differentiated investment proposition, committed to truly responsible investing and the creation of long-term value for Cypriot investors,” he said.

“CISCO’s asset management division, one of the largest in Cyprus, serves a broad base of institutional clients including pension funds, provident funds, insurance companies, and corporates, both domestic and international,” he added.

Batzis also explained that “the launch of the CISCO Sustainable Portfolios is a direct response to increasing regulatory requirements and investor expectations around ESG integration”.

In its announcement, the bank underlined that “this initiative positions CISCO and Schroders at the forefront of ESG innovation in the region“.

It added that it “empowers institutional investors to navigate the risks and opportunities of the global transition toward sustainability”.

Developments in ESG finance across Europe

It should mentioned that the European Commission continues to push forward with efforts to improve and simplify the European Union’s sustainable finance framework.

These initiatives are intended to make the system clearer, more effective and easier for investors and companies to apply.

As part of its February 2025 omnibus package, the commission proposed significant changes to the Corporate Sustainability Reporting Directive (CSRD).

One of the key measures, known as the “stop the clock” proposal, delays reporting requirements by two years, until 2028, for companies that would have been required to report as of 2026 or 2027.

This delay has already been approved by the European Parliament and the Council, and member states must now transpose the measure into national law by the end of the year.

The commission also introduced a “content” proposal, which would remove 80 per cent of companies from the CSRD’s scope.

This change would refocus the directive on large companies with over 1,000 employees.

It also includes a proposal to make taxonomy reporting voluntary for companies with annual turnover below €450 million.

In addition, it proposes to remove sector-specific reporting standards and to eliminate the option of introducing reasonable assurance requirements.

This package of measures is currently under consideration by the Parliament and the Council.

For small and medium-sized enterprises (SMEs), the commission proposed a voluntary sustainability reporting standard for companies that fall outside the scope of the CSRD.

This new standard is based on the Voluntary Standard for SMEs (VSME), developed by EFRAG, the commission’s technical advisory body on sustainability reporting.

It is intended to serve as a shield, limiting the amount of information that CSRD-reporting companies can request from smaller businesses in their supply chains.

To address current market demand, the commission also intends to issue a recommendation on voluntary sustainability reporting by SMEs, using the VSME standard as a basis.

At the same time, the commission has committed to revising the European Sustainability Reporting Standards (ESRS), which define how companies must report under the CSRD.

This revision aims to reduce the number of required data points, clarify unclear provisions and ensure consistency with other EU legislation.

EFRAG has been asked to submit draft revised standards by October 31, 2025.

In the meantime, a delegated act is expected to be adopted to revise the existing ESRS, with the aim of preventing companies reporting for financial year 2024 from having to add further disclosures in 2025 and 2026.

The February 2025 omnibus package also included a draft delegated act to amend the EU Taxonomy Disclosure, Climate and Environmental Delegated Acts.

These amendments seek to simplify reporting templates and exempt companies from reporting on activities that account for less than 10 per cent of their turnover.

Stakeholders were invited to provide feedback by the end of March 2025, and adoption of the act is expected in June 2025.

The commission is also reviewing the EU taxonomy screening criteria, including the “do no significant harm” principle, to improve usability and simplify application.

A feedback period for these revisions is expected in early 2026, with a delegated act potentially adopted in the second quarter of 2026.

Changes would apply to reporting for the financial year 2026, or possibly sooner if companies opt to use the revised rules voluntarily.

In addition, the commission plans to expand the taxonomy to cover more economic activities, reflecting both its policy priorities and the needs of industry.

The EU taxonomy disclosure rules are also being reviewed with simplification as the main goal, although no timeline has yet been set for this process.

Meanwhile, the commission has been assessing the Sustainable Finance Disclosure Regulation (SFDR), which has been in force since 2021.

The SFDR requires financial market participants and advisers to disclose sustainability-related information at both entity and product levels.

The ongoing review seeks to enhance legal clarity, improve usability and ensure the regulation supports efforts to combat greenwashing.

It builds on feedback from consultations carried out in 2023, as well as subsequent input from stakeholders.

A formal proposal to revise the SFDR is included in the commission’s work programme for the fourth quarter of 2025.

Overall, these reforms are part of the EU’s broader strategy to align its competitiveness with climate goals.

They aim to create a supportive environment for European businesses to attract sustainable investment, contribute to the European Green Deal and unlock long-term economic potential.