Sustainability risk policies (under Art. 3 SFDR)
Investcorp-Tages believes that an assessment of Environmental, Social and Governance (ESG) issues is a crucial part of investment and operational risk management across all the investments we make. This investment universe comprises a wide variety of investment managers, investment strategies and investment vehicles in the alternative space, ranging from the more liquid products to private markets. A common thread through each of these investments is the belief that mitigating ESG Risks (defined as an event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the investment) strengthens downside protection and enhances the investment community’s reputation.
For this reason, we integrate ESG considerations within the investment process, as appropriate to the relevant investment solutions, and have adopted a dedicated ESG Policy, which can be accessed here.
ESG Risks considered by the Investment Manager as part of its investment management process include governance risks such as board composition and transparency, critical incident risk management and systematic risk management; environmental risks such as potential physical impacts of climate change and materials sourcing and efficiency; and social risks such as human rights abuses, health and safety, and data security and privacy.
In undertaking its analysis of ESG Risks, Investcorp-Tages draws on a mix of publicly available data, internal data, data provided by external consultants and data received as part of the due diligence exercise from the target investment.
With a particular reference to our Multi-manager investment solutions, the portfolio construction and risk management aim at evaluating the contribution of ESG factors to determining investment strategy and asset class. For those investment mandates that specifically requires it, the risk management also evaluates the alignment of the portfolio as a whole and the selected managers with the client’s sustainability priorities.
No consideration of sustainability adverse impacts (under Art. 4 SFDR)
Owing to the nature and feature of our investments, which are mainly focused on managed funds and other indirect investments, it is not feasible to identify, prioritize and, therefore, objectively measure the main adverse impacts of our investment decisions on sustainability factors, given that indicators and metrics by which to measure and verify adverse impacts are not readily available at the regulatory and market level.
Following the entry into force of the Regulatory Technical Standards, scheduled for 2023, which are expected to provide clear indicators to disclose on adverse impacts, Investcorp-Tages plans to review its approach to the consideration and management of principal adverse impacts, building on its existing engagement and responsible investing practices shared with its underlying managers.
Remuneration policies in relation to the integration of sustainability risks (under Art. 5 SFDR)
Investcorp-Tages recognises the value of integrating ESG Risks and considerations in the investment process and adopts remuneration and career management policies to promote the adoption of leading practices by all relevant personnel.
To this end, the C-suite executives, Head of ESG and Impact Investing and the ESG Team, together with individuals involved in the responsible investment process, have performance assessment linked to the active participation to projects and initiatives related to the integration of ESG factors and Responsible Investing.
Head of ESG and Impact Investing
T: +39 02 87337 1 – manuela.cedarmas@InvestcorpTages.com