SFDR Entity-level Disclosures

In what follows, Creafund discloses their sustainability risk consideration, their principal adverse impacts statement and their sustainability alignment with their renumeration policy in accordance with articles 3.1., 4.1.(b) and 5.1., as expected by Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector, also called the Sustainable Finance Disclosure Regulation, or SFDR.

Sustainability risk consideration

Article 2 (22) defines a ‘sustainability risk’ as an environmental, social or governance event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the investment. For Creafund, the different Sustainability Risks depend on the different companies we are invested in. We aim to take the sustainability risks into account in our entire investment cycle by looking what can be done at entry, during ownership and at exit. Our ESG Policy sheds more light on how we do this and how we support the overarching goal of directing funds towards more sustainable objectives.

No consideration of adverse impacts of investment decisions on sustainability factors

While we acknowledge the significance of sustainability factors in today's investment landscape, our current approach is shaped by the pragmatic consideration of limited resources. That is why, In accordance with article 4.1 (b) of the SFDR, Principle Adverse Impacts of investment decisions are not considered in our SFDR Statement. At Creafund, we are actively working towards integrating sustainable practices into our investment strategies. However, given the size of our organization and our more organic way of implementing sustainable practices, we have adopted a phased and prioritized approach to sustainable investing. Our commitment remains steadfast, and we aim to progressively enhance our sustainability initiatives as our capabilities grow. We appreciate the importance of responsible investment practices and are dedicated to evolving towards a more comprehensive and sustainable portfolio management model over time.

Remuneration policy alignment

In our pursuit of sustainable investing, we believe that businesses with robust environmental, social, and governance (ESG) practices are not only ethically responsible but also financially sound. At Creafund, our remuneration policy is intricately aligned with our commitment to the integration of sustainability risks into our investment decisions. Recognizing that sustainable businesses can offer not only long-term value but also enhanced financial returns, our team is rewarded for prioritizing sustainability in our investment portfolio. This ensures that our team is not only contributing to the overall success of the portfolio but also actively participating in the realization of financial gains associated with sustainable business practices.

By linking remuneration to the success of sustainable investments, we aim to foster a culture where our team is motivated to seek out opportunities that align with our commitment to responsible and sustainable investment practices. This approach not only reinforces our dedication to making a positive impact but also underscores our belief that sustainable investing can deliver superior financial performance. As the landscape of private equity evolves, we are confident that our remuneration policy will continue to incentivize the pursuit of sustainability, contributing to the long-term success of our portfolio and the broader well-being of the planet.

Last updated: 12/02/2024