We acknowledge that sustainability risks are likely to influence the financial performance and reputation of our portfolio and our funds. Since sustainability risks cannot be completely ruled out, we have developed specific strategies for our portfolio to identify and limit sustainability risks.
During the deal sourcing phase, we identify and exclude investments in companies with an increased risk potential. By applying specific exclusion criteria, we seek to align our investment decisions with environmental, social or governance values. Companies are only included in our portfolio if they meet our exclusion criteria (no companies whose primary activity is the production of and trade in tobacco, distilled alcoholic beverages, and related products, the business of pornography or vice, the financing of the manufacture and trade of weapons and ammunition, the operation of gambling facilities and equivalent enterprises, the engagement in harmful practices to the environment, the engagement in discriminatory practices against any minority group, the employment of child labour or where we have evidence of labour, environmental or corruption issues (as defined by the UN Global Compact) that cannot be easily resolved by a change of ownership).
During the investment process, we strive to improve the sustainability performance of our portfolio through active ownership and drive long-term value creation. Abac improves the sustainability performance of investees in four key transversal areas: Climate, good employment, diversity, and governance. To achieve this target, Abac implements key processes ensuring sustainability management is integrated by all investees. These activities also contribute to mitigating sustainability risks at portfolio and fund level.
We acknowledge that our investment decisions may have external impacts on our surrounding communities. We consider the principal adverse impact on sustainability factors of investment decisions made in connection with our portfolio using the following indicators (“PAI Indicators“), based on Annex I of the SFDR Delegated Regulation (Commission Delegated Regulation (EU) 2022/1288):
The data on the PAI Indicators in relation to each investee company is collected in the context of the initial due diligence, as well as throughout the investment period on a quarterly basis and quarterly follow-up meetings are held with each investee company to discuss the data and the initiatives taken to address that investee company’s impact on sustainability factors.
Abac Capital Manager SGEIC, S.A.U. (periodic disclosure entity PAIs)
Disclosures
2022-2023
Our compensation policy does not incentivise employees to take sustainability risks, as the performance-related variable components of our remuneration policy are not of a size that would incentivise taking short term risks and take into account the employee’s contribution to Abac’s sustainable and long-term viability.
In this respect, the compensation policy is consistent with the strategies for the integration of sustainability risks.
Abac SV Fund II FCR
Abac S Value II SCR, S.A.
Abac Nest II FCRE