Sustainability disclosures at entity level pursuant to SFDR

At Corinthian Venture Partners AS (“CVP” or “we“) we believe that sustainability and profitability go hand in hand., and we integrate environmental-, social- and governance-related factors (“ESG“) into our investment analysis, decision-making and portfolio management. Through applying this approach, we aim to invest for a sustainable future while creating superior risk-adjusted returns for investors.

The EU has adopted legally binding measures on sustainable finance applicable to alternative investment fund managers such as CVP. These measures include Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (the “SFDR“), applicable in both the EU and Norway.

The below paragraphs provide specific information required under the SFDR about CVP’s policies on integration of sustainability risks in its investment decisions, whether principal adverse impacts of CVP’s investment decisions are considered and how CVP’s remuneration policies are consistent with the integration of sustainability risks.

Transparency of sustainability risk policies (SFDR Article 3)

SFDR Article 3 requires fund managers such as CVP to publish on their websites information about their policies on the integration of sustainability risks in their investment decision-making process.

Sustainability risks are defined in the SFDR as environmental, social or governance events or conditions that, if they occur, could cause an actual or a potential material negative impact on the value of the investment.

We firmly believe that companies that identify and manage sustainability risks early are likely to survive longer, be more resilient, and create more value for stakeholders. Therefore, we integrate sustainability risks in all our investment strategies. Such risks form part of the considerations made at every stage of the investment process – from initial screening to exit. When screening for potential investments, CVP seeks to identify and measure sustainability risks the relevant company may be exposed to. If CVP identifies sustainability risks it deems too high, CVP will not invest in the company. Consideration of sustainability risks therefore has direct effect on our investment decision process.

No consideration of principal adverse impacts under SFDR article 4

SFDR article 4 requires financial market participants such as CVP to publish to publish and maintain on their websites information on whether they consider principal adverse impacts (“PAI“) of investment decisions on sustainability factors and, if they do not consider PAI, clear reasons therefor, including, where relevant, information as to whether and when they intend to do so.

Sustainability factors are environmental, social and employee matters, respect for human rights, anti-corruption and anti-bribery matters, and PAI are the most significant negative impacts of investment decisions on these factors.

CVP does at this time not consider PAI of its investment decisions on sustainability factors.

In making this decision, we have taken into account the nature and scale of our activities and investment universe. Our view is that our targeted investments, i.e., early-stage companies within the B2B technology sector, currently have relatively small adverse effects on sustainability factors. Therefore, we believe that our resources are better allocated to other areas, such as ongoing interaction with the management of our portfolio companies to improve their sustainability profile and improve their value creation.

We do, however, appreciate the need to regularly review our approach to ESG investing in light of a constantly changing world. We will therefore, especially in parallel with the scaling up of our portfolio companies’ activities, keep our decision not to consider principal adverse impacts under SFDR article 4 under regular review.

Transparency of remuneration policies in relation to the integration of sustainability risks (SFDR Article 5)

SFDR article 5 requires financial market participants such as CVP to publish on their website information on how their remuneration policies are consistent with the integration of sustainability risks.

CVP integrates sustainability risks in all its investment strategies. In order to effectively put these strategies into practice, it is important that the persons making the investment decisions are incentivized in a way that does not counter the aim of considering sustainability risks in their management.

Therefore, CVP’s remuneration policy shall not encourage excessive risk taking with respect to sustainability risks, meaning that no financial incentive should be directly tied to making investment decisions that involve exposing a single company or a combined portfolio under CVP’s management to sustainability risk deemed unacceptable.

Furthermore, sustainability risks are taken into account in the measurement and assessment of results for CVP and the funds under our management. The remuneration policy shall also contribute to the avoidance, mitigation and management of conflicts of interest. Accordingly, we consider the effect that the policy may have on conflicts of interest in relation to the integration of sustainability risk, including in relation to activities that involve greenwashing, incorrect presentation of investment strategies or other incorrect marketing.

Before investing we will screen companies against our exclusion list and inclusion list.

Inclusion criteria’s:

  • In the screening process CVP will include companies that contribute to one or several of the UN Sustainability development goals (SDGs):

Goal 1. End poverty in all its forms everywhere

Goal 2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture

Goal 3. Ensure healthy lives and promote well-being for all at all ages

Goal 4. Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

Goal 5. Achieve gender equality and empower all women and girls

Goal 6. Ensure availability and sustainable management of water and sanitation for all

Goal 7. Ensure access to affordable, reliable, sustainable and modern energy for all

Goal 8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

Goal 9. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

Goal 10. Reduce inequality within and among countries

Goal 11. Make cities and human settlements inclusive, safe, resilient and sustainable

Goal 12. Ensure sustainable consumption and production patterns

Goal 13. Take urgent action to combat climate change and its impacts

Goal 14. Conserve and sustainably use the oceans, seas and marine resources for sustainable development

Goal 15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss

Goal 16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels

Goal 17. Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development

 

Exclusion criteria’s

CVP shall not make any investment into the following activities:

  • Arms and weapons
  • Use of exploitative forms of “forced labor” or “child labor”
  • Production and/or trade of fossil fuels without carbon capture and use of storage to mitigate substantially all carbon emissions from such activity
  • Tobacco, alcohol and drugs
  • Unlicensed gambling
  • Pornography
  • Production or trade in radioactive materials.
  • All illegal economic activity