Sustainable Finance Compliance

Innovestor Management Companies will integrate sustainability risks into their decision-making process as described in Article 3 of the SFDR. Sustainability risk is defined as an environmental, social or governance event or circumstance the occurrence of which could have a negative material impact on the value of an investment. Environmental risks may relate, inter alia, to climate risks (physical risks and migration risks), biodiversity or emissions. Social risks may relate to issues such as safety and welfare, human rights in the supply chain, employee or tenant satisfaction, or other factors. Governance risks may relate to issues such as inadequate management of environmental, social or governance issues, executive remuneration, corruption, bribery, cyber security or data protection. Potential sustainability risks may have a negative impact on the value of the investment if they materialize.

Innovestor Management Companies take sustainability risks into account before the investment decision, during the holding period and at the exit stage. At the dealflow stage, investments are restricted to specific sectors and activities through a separate restriction list. During due diligence, material sustainability risks associated with the proposed investment are identified. Investment decisions take into account the due diligence findings and proposed measures, including those relating to sustainability risks. During the holding period, sustainability factors and risks are part of active ownership and are kept among others on the agenda of the boards of target companies and monitored annually through an ESG questionnaire.

For more information on how sustainability risks are taken into account in the investment decisions of Innovestor Management Companies, click here.

This notice covers all funds managed by Innovestor Management Companies, notwithstanding the fact that some of them have been established and possibly closed to new investments before the SFDR entered into force on 10 March 2021.

Innovestor Management Companies are registered alternative investment fund managers and are therefore not subject to Article 5 of the SFDR on transparency of remuneration policies. As registered alternative investment fund managers, Innovestor Management Companies do not have separate remuneration policies.