SFDR Disclosures

ESG disclosures in accordance with the EU Sustainable Finance Disclosure Regulation (SFDR)

Date of publication: 29.02.2024
Last reviewed 29.02.2024
EdgeCap Partners OÜ (EC) is required to publish certain information on its website in accordance with Regulation 2019/2088 of the European Parliament and of the Council on sustainability‐related disclosures in the financial services sector (the “SFDR”).

Currently, no environmental or social characteristics are promoted by EC’s financial products in accordance with Article 8 of SFDR and EC’s financial products do not have sustainable investments as their purpose in accordance with Article 9 of the SFDR. Nevertheless, EC believes that, in order to make good investments, sustainability factors should not be overlooked.

Policies on the Integration of Sustainability Risks in the Investment Decision‐Making Process (Article 3 of SFDR)

According to Article 2 (22) of SFDR, “sustainability risk” means ‘’an environmental, social or governance event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of an investment.”

At the moment, EC has not put in place any formalized ESG risk monitoring and management procedures.

We believe that ESG factors such as corporate governance, business relations, social and environmental responsibility, as well as customer and employee satisfaction are important for long-term sustainability and good business results of our portfolio companies.

However, as mentioned above, currently, EC has decided to focus resources on other areas that facilitate the development of its investment funds but may, at its sole discretion, decide to implement ESG risk monitoring and management procedures in the future.

No Consideration of Adverse Impacts of Investment Decisions on Sustainability Factors (Article 4 of SFDR)

At present, EC does not consider principal adverse impacts (PAIs) on sustainability factors and does not plan to do so in the future for the following reasons. Considering the size and nature of EC and its investment funds, conducting a PAI assessment in accordance with SFDR and its delegated acts would tie up a disproportionate amount of EC’s resources. Additionally, currently available ESG data is insufficient to fulfill the requirements, which arise from the regulatory technical standards (RTS) complementing the SFDR.