Estari

Policy on the integration of sustainability risks in our investment advice (Art. 3 SFDR)

We integrate the sustainability risks in our investment advice by reviewing and assessing ESG risks related to an investment opportunity during the preliminary sustainability assessment, prior to the decision to invest in a target company.

Environment: we ensure that the target company does not operate in polluting industries or otherwise harm the environment without having put in place mitigating policies and an efficient resources consumption policy.
Social: we ensure that the target company does not harm the health of its employees and sub-contractors.

Governance: we ensure that the target company and its group have the best-in-class governance practices in place (in particular with respect to sound management structures, employee relations, remuneration of staff and tax compliance).

By identifying the main ESG issues of an investment opportunity, Estari determines what could pose a sustainability risk that would harm the value of the investment and starts the discussion prior to investing to be aligned from the start with the target on goals to be achieved.

Statement on principal adverse impacts of investment advice on sustainability factors (Art. 5(a) SFDR – art. 11 RTS)

Estari Ltd (the “Financial Adviser”) assesses and measures the positive impact, as well as potential negative externalities, of investment opportunities. In that context, the Financial Adviser considers the PAI of investment opportunities on sustainability factors throughout all major steps of the investment advice.

Our sustainability framework draws from best practices, including those developed by Future-Fit, GRI or the Impact Management Project. It is compliant with the EU Taxonomy. The PAI are assessed during preliminary assessment and due diligence.

The Estari team carries out a preliminary sustainability assessment where it identifies and reports the PAI and major ESG risks, using its own sustainability framework. We identify key risks, set interim targets, prioritise actions, anticipate trade-offs, and track progress.

In the final phase of due diligence, a full sustainability assessment is carried out either by the Estari team or preferred partners to validate the main assumptions and describe how and to what extent the company has principal adverse impact, if any.

Then, we ensure the company has a clear plan to mitigate them and we participate in setting targets to improve over time.

Remuneration policy in relation to the integration of sustainability risks (Art. 5 SFDR)

Our team’s financial incentives are aligned with our impact mandate.

10% is automatically reinvested in social funds.
50% of the carried interest is linked to the impact performance of the fund. The performance is calculated individually, for each portfolio company. For each investee, Estari determines up to 4 impact-related KPIs (embedded in the sustainability charter of the Company), based on historical performance.