The investment policy of the Fund is to generate short-/ medium- and long-term capital appreciation through debt related instruments with equity warrants in selected entities. The Fund’s investment strategy is to make, directly or through intermediate vehicles, investments in growth stage companies in sector agnostic industries with innovative business models, promising enabling technologies and sound business cases. As of the date of this Memorandum, the Fund has started investing its funds and identified investment opportunities in young growing companies in order to realize risk diversification effects in a well-balanced portfolio in accordance with the investment policy.
Principal adverse sustainability impacts statement
This section is meant to describe to which extent Bridge To Growth (“BTG”) considers adverse impacts of investment decisions made for the Fund on sustainability factors. Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector (“SFDR”) defines “sustainability factors” as environmental, social and employee matters, respect for human rights, anti‐corruption and anti‐bribery matters (“Sustainability Factors”).
BTG considers principal adverse impacts of its investment decisions on sustainability factors. The present statement is the consolidated principal adverse sustainability impacts statement of BTG.
BTG focusses its investment activity on investee companies which (i) develop or manufacture technologies aiming to support a positive sustainability impact, (ii) have implemented carbon emission reduction initiatives, (iii) generate a significant share of recycled waste and (iv) have established policies on anti-corruption and anti-bribery.
Description of principal adverse sustainability impacts
The following adverse sustainability indicators are applicable to investments made by BTG for the Fund in investee companies:
- Greenhouse gas emissions: BTG does not invest in companies whose activity generates high greenhouse gas emissions or has a significant share of non-renewable energy consumption.
- Biodiversity: BTG does not invest in investee companies with operations located in or near to biodiversity-sensitive areas on which the business activity of the relevant company may have a negative impact.
- Water: BTG does not invest in investee companies generating significant emissions to water.
- Waste: BTG avoids investments in investee companies generating hazardous waste.
- Social and employee matters: BTG avoids investments in investee companies that have been involved in violations of the United Nations Global Compact (UNGC) principles. BTG encourages investee companies to have a well-balanced female to male board members ratio and measures to achieve an adjustment of the gender pay gap.
Furthermore, BTG does not invest in investee companies that (i) do not follow a human rights policy and a due diligence process to identify, prevent, mitigate and address adverse human rights impacts or (ii) are exposed to operations or suppliers with a significant risk of incidents of child labor.
Description of policies to identify and prioritise principal adverse sustainability impacts
The above described sustainability criteria are part of BTG’s investment guidelines. Compliance with these guidelines will be requested by way of an ESG Questionnaire which all investee companies have to complete before an investment in the relevant company can be considered by BTG for the Fund. The responsibility for the implementation lies with BTG’s managing directors and its investment committee.
BTG does not make investments in listed companies and therefore not have in place any engagement policies in accordance with Art. 3g of Directive 2007/36/EC of the European Parliament and of the Council. As a debt investor, the Fund will take a mere passive role in the investee companies which does not provide BTG with much power of reducing principal adverse impacts at the level of the investee companies.
References to international standards
BTG aims to align with the Green Pledge commitment of the Leaders for Climate Action (LFCA).
Integration of sustainability risks statement
This section is meant to describe the manner in which BTG integrates sustainability risks into its investment decisions. Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector (“SFDR”) defines “sustainability risks” as environmental, social or governance events or conditions that, if they occur, could cause an actual or a potential material negative impact on the value of the investments.
BTG and the Fund are aiming to implement a harmonised policy with respect to the integration of sustainability risks. This includes the integration of sustainability risks into the investment decision making process for the Fund and the exclusion of investments in investee companies if these could be exposed to sustainability risks. The successful implementation of this approach is largely dependent on BTG having access to appropriate and reliable data in respect thereto.