Sustainable Finance Disclosure Regulation (SFDR) Statement
Transparency of Sustainable Risk Policies:
At Project A, our vision is to invest for a better future. We want to make a difference for our trusted founders and wider society – while also delivering attractive financial results.
Accordingly, and in line with our overarching investment philosophy, we believe that considering environmental, social and governance (ESG) factors within the investment decision has the ability to improve investment returns – both by downside operational risk reduction, and increased value potential.
Hence, sustainability elements, which we identify prior to any financial commitment through an ESG due diligence checklist, are complementing our quality-focused approach to investing.
The focus of each ESG due diligence may differ. However, in all instances we will examine the areas that we regard as central to understanding the ESG profile of the particular business in which we are considering an investment. During the assessment, any identified ESG risks are highlighted and incorporated into the investment committee briefing booklet.
Transparency of Adverse Sustainability Impacts at Entity Level:
Post-investment, Project A aims to promote the pursuit of ESG considerations among our portfolio companies by sharing our views – in an ongoing and constructive dialogue, on matters such as adverse social and environmental impact, as well as corporate governance.
During the ongoing dialogues, the goal is to identify, among other things, areas for sustainable value creation and ESG related risk mitigation. We acknowledge and apply the principle of proportionality, i.e. taking due account of size, nature and scale of our activities, as well as our portfolio companies and their specific situations.
Project A especially welcomes proportionate and effective measures that respond to the urgent climate crisis and fully support the transition to a sustainable economy. We have been an early signatory of the initiative “Leaders for Climate Action”, which supports environmental awareness and minimises, wherever feasible, the adverse environmental impact of business activities. Therefore, as a standard, we ask our portfolio companies to implement respective LFCA-topics into the Shareholder Agreement within a reasonable time after the closing.
In addition, where our influence allows, we plan to consistently enhance our ESG monitoring frameworks to observe and influence the integration of ESG considerations. Furthermore, we are in continuous discussions with external agencies that support us in identifying and limiting principal adverse sustainability impacts of our business activities.
Finally, we recognize that there is no clearly established way for integrating ESG considerations, and as such our ESG approach will be reviewed at least annually and amended appropriately.