Approach to Responsible investments, ESG and sustainability risks

The Sparkmind Fund LP has sustainable investment as its objective in accordance with Article 9 (2) of the EU Sustainable Finance Disclosure Regulation ((EU) 2019/2088, SFDR).

The ESG factors may disclose risks, but also present new opportunities to our Fund’s portfolio companies. Success in our investment operations is driven by the financial performance of target companies, but also by other performance criteria, which we in general call “key impact indicators”. We have integrated consideration of these investment risks and opportunities into our investment process, as well as the due diligence of potential target companies. In addition, the ESG and impact indicators are reported to the investors of our Fund.

For more information on sustainability at and the integration of sustainability risks in our investment decision-making process, please see our Sustainability policy.

No consideration of adverse impacts of investment decisions on sustainability factors

According to Article 4 of the SFDR, financial market participants shall publish and maintain on their websites information on whether they consider or do not consider principal adverse impacts (PAIs) of investment decisions on sustainability factors. The EU has defined the following indicators to measure PAIs when investments are made in companies: greenhouse gas emissions, biodiversity, water, waste and social and employee matters such as diversity, respect for human rights, and anti-corruption matters.

At the moment does not consider principal adverse impacts on sustainability factors, as defined by the EU, in its investment decisions, because there is not sufficient data available of the target companies to measure such impacts. We follow closely the availability of such data and may later consider also principal adverse impacts of our investment decisions on sustainability factors.

Sparkmind discloses information on consideration of the adverse impacts of investment decision of its Fund in the Sustainability related disclosures document and in the Fund’s annual report in accordance with the SFDR and the Regulatory Technical Standards on ESG disclosure (2022/1288).