Mandatory disclosures under regulation of the european parliament and of the council on sustainable-related disclosures in the financial services sector (EU) 2019/2088 (“SFDR”)
The Sustainable Finance Disclosure Regulation requires financial market participants such as Specialist VC to publish certain sustainability related information on their website. The following disclosures refer to the Specialist VC’s investment decision-making processes with regards to environmental, social and governance (ESG) topics.
Policies on the integration of sustainability risk in investment decision-making processes
Sustainability risks refer to an environmental, social or governance event or condition that, if it occurs, could cause a negative impact on the value of the investment. Specialist VC has integrated sustainability risk considerations into the investment decision-making process, the steps of which are outlined in our ESG policy.
Potential sustainability risks are identified and assessed by Specialist VC prior to the investment as part of a systematic due diligence process which is grounded in ESG criteria assessment, involving topics like company´s ESG policy, employee diversity and board structure and role. In case sustainability risks are identified and the investment is carried out, Specialist VC may advise the investee company on the identified risks.
Portfolio companies´ ESG status and advancements will be monitored annually, following the same criteria as in the due diligence process.
In case of further interest in our ESG policy, information is available upon request.
No consideration of adverse sustainability impacts
While Specialist VC acknowledges potential negative externalities of the investments, it does not formally consider adverse impacts of investment decisions on sustainability in relation to SFDR article 4.
This is due to two main reasons: a) the portfolio companies belong mostly to the digital sector where adverse impacts on sustainability factors are not prevalent, and b) due to the early development phase of the portfolio companies, the availability of information is not yet sufficient to account for these impacts.
Any adverse sustainability impacts that should occur during the investment period will be evaluated by Specialist VC and necessary steps will be taken to address and potentially reduce or eliminate the impact.
To date, no adverse impacts on sustainability have been identified.
Mandatory disclosures of remuneration policies in relation to the integration of sustainability risks
Specialist VC does not apply a remuneration policy in relation to the integration of sustainability risks.