EU’s Sustainable Finance Disclosure Regulation (SFDR) is a significant set of rules related to sustainable financing with the purpose of improving the information and transparency on sustainable issues in the financial sector and preventing misrepresentation of ESG activities or initiatives (greenwashing)
IIP wants to make a difference. Not only to our investors but also to our planet and society. Therefore, we have implemented an ESG investment policy with guidelines for responsible investments.
Our precondition for responsible investments is that companies that act responsibly in the long run are expected to achieve better and more stable returns to their shareholders.
The ESG principles outlined in the ESG policy apply to IIP and we will endeavor that the principles are observed by the investments of any funds and any other type of investment vehicle managed by IIP. IIP integrates our ESG policy in the best possible way in the individual investments. If, via an investment, IIP becomes a co-owner of a company that infringes the ESG investment policy and it is decided to divest the entire investment, the general partner of the investment shall work to ensure that this is done sensibly, taking into account the other investors in the fund.
IIP’s approach to working with responsible investments is based on the UN principles for responsible investment and IIP expects the general partners of the investments to be active owners adhering to the following six principles.
Article 3 of the SFDR regulation – Policies
As a FAIF we shall publish on our website information about the policies on integration of sustainability risks in our investment decision process.
The integration of sustainability risks is addressed in IIP’s ESG Policy, ESG process description and Portfolio Management Policy including our Due Diligence framework. Through the Due Diligence framework, we identify principal adverse impacts on sustainability factors such as environmental and social issues and we assess sustainability risks on financial returns.
Article 4 of the SFDR regulation – Principal adverse impact
Financial Market Participants with less than 500 employees can choose to consider principal adverse impact of its investment decisions on sustainability factors. Though not legally required, IIP has decided to consider principal adverse investment decisions on sustainability factors. Please refer to our “Principal adverse impact Statement” for a description on how we consider such principal adverse impact.
Article 5 of the SFDR regulation – Remuneration Policy
Financial Market Participants including FAIFs shall in their remuneration policies include information on how these policies are in compliance with the integration of sustainability risks. This information is to be published on their websites.
IIP has both a remuneration policy and a diversity policy. These policies aim at ensuring compliance with relevant regulations and standards. The principles on hiring, evaluating and promoting employees include an overall assessment of employee, actions and effort. ESG issues and risks are part of the overall assessment process.
Art 8 and 9 of the SFDR regulation – sustainable investment products
IIP has a clear investment strategy and is dedicated to advising institutional investors on private fund investments and co-investments within private equity, venture and infrastructure funds globally. IIP wants to make a difference. Not only to our investors but also to our planet and society. Therefore, we have a strong focus on our guidelines for responsible investing within our strategy. Our pursuit of responsible investments also stems from our belief that companies that act responsibly in the long run are expected to achieve better and more stable returns to their shareholders.
However, since IIP’s investment products are not marketed as having environmental or social characteristics or as being fully or partial sustainable investment products, the requirements in Art. 8 and Art 9 do not apply to IIP.