Environmental, Social And Governance Policy
We are committed to a sustainable investment approach by including Environmental, Social and Governance (ESG) criteria both in our investment process and in the monitoring of investments.
We are convinced that including ESG criteria in our investment strategy brings additional value to our investors, our companies, and our people.
As proof of this commitment, we are a signatory of the UN-PRI (United Nation Principles for Responsible Investment).
Article 3 – Transparency of sustainability risk policies
The European Union (“EU”) Sustainable Finance Disclosure Regulation (“SFDR”) defines sustainability risk as “environmental, social or governance (“ESG”) event or condition that, if it occurs, could cause a negative material impact on the value of the investment”. Preservation Capital Partners (the “Firm”) integrates the consideration of ESG factors into its investment process. The responsibility of incorporating financially material ESG factors into the investment process sits with the investment team. The investment team integrates financially material ESG factors in the investment evaluation process. The investment and risk functions are responsible for identifying and assessing relevant ESG factors. The Firm expects to evaluate on an on-going basis whether ESG factors may materially affect the returns of an investment and consequently affect the returns of the Partnership. The Firm may, at its discretion, compile and analyse such information and where appropriate and upon request, will report the results to the Investors. For more detailed information, including any policies, regarding how the Firm integrates sustainability risks in the investment, please contact email@example.com
Article 4 – No Consideration of Adverse Impacts of Investment Decisions on Sustainability Factors
The Firm does not consider adverse impacts of investment decisions on sustainability factors as specifically set out in Article 4 of the SFDR, and in the Regulatory Technical Standards of Commission Delegated Regulation (EU) 2022/1288. The Firm has chosen not to do so for the present time as it is considered that the existing ESG policies and procedures are appropriate, proportional and tailored to the investment strategies of the funds managed by the Firm.
Article 5 – Transparency of remuneration policies in relation to the integration of sustainability risks
The Firm does not include explicit sustainability-related risks or KPIs within remuneration decisions. Remuneration is tied to overall business performance, a large part of which is driven by the performance of the funds’ being managed. Given that the investment process includes the integrates financially material ESG factors in the investment evaluation process, as it is the Firm’s belief that this is relevant for risk mitigation and can drive stronger risk-adjusted returns, there is an implicit connection between the integration of sustainability risks and remuneration.