Information Concerning HCapital's Sustainability Policies
HCapital’s Sustainability Policy
HCapital’s goal is to deliver adequate financial returns to investors while acting with integrity and taking a responsible approach to investment both in its internal operations and when dealing with its investors, portfolio companies, advisors, local communities and society as a whole.
In doing so, HCapital is committed to integrate ESG factors into its investment process, most critically in the strategy and operations of its investees, contributing to the creation of resilient companies, operating under sustainable business models and adequate governance systems.
Our understanding is that the increasing consumer awareness for ESG issues, along with the regulatory push from supervisors and other authorities or public institutions, contribute to a better alignment of investors’ interests with those of society as a whole.
Please refer to our Sustainability Policy for more information.
EU Sustainable Finance Disclosure Regulation (“SFDR”)
The information on this section addresses the obligations set out in EU Regulation 2088/2019, of November 27, 2019, regarding the disclosure of information related to the SFDR.
1. Integration of Sustainability Risks
Art. 3 of Regulation (EU) 2019/2088 – disclose the entity’s guidelines for integration of sustainability risks into the investment process.
Information on how HCapital integrates sustainability risks into its investment process is included in its Sustainability Policy.
2. No consideration of principal adverse sustainability impacts
Art. 4 of Regulation (EU) 2019/2088, disclose whether principal adverse impacts of investment decisions or advice on sustainability factors are considered as part of the investment decision or advice.
HCapital does not currently consider the Principal Adverse Impacts of investment decisions on sustainability factors. This is because we are currently implementing the required processes and tools to obtain and measure the data required by the SFDR to report on our investment strategies. We intend to quantify and report upon the principal adverse impacts of investment decisions on sustainability factors once the regulatory technical standards come into effect, which is expected to happen between 2022-2023.
We are taking the necessary preparations to gather, monitor and report the 16 mandatory principal adverse impact indicators as well as other voluntary, within the specified reporting period by collecting ESG indicators from our portfolio companies.
3. Remuneration and integration of sustainability risks
Art. 5 of Regulation (EU) 2019/2088, disclose how remuneration principles relate to the integration of sustainability risks disclosed under art. 3 of the SFDR.
Information on how HCapital integrates sustainability risks in its remuneration principles is included in its Sustainability Policy.
4. SFDR Product Categorisation
Art. 6 of Regulation (EU) 2019/2088, transparency regarding the integration of sustainability risks.
All products managed by HCapital that fall within the scope of the SFDR meet the conditions set out in Article 6 of SFDR as Sustainability Risks are integrated into the investment decision-making process – please check HCapital’s Sustainability Policy for further information.
EU Taxonomy Regulation
Art. 7 of Regulation (EU) 2020/852 – Transparency of other financial products in pre-contractual disclosures and in periodic reports.
Given that no products managed by HCapital fall within the scope of SFDR’s Art. 8 or Art.9, the company declares that the investments underlying its financial products do not currently take into account the EU criteria for environmentally sustainable economic activities.