Incorporation of sustainability risks into investment decisions (Article 3 and 6 SFDR)
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.