DISCLOSURES PURSUANT TO THE SUSTAINABLE FINANCE DISCLOSURE REGULATION (EU) 2019/2088
From 10th March 2021, a new regulation on sustainability-related disclosures in the financial services sector applies to all EU market participants, including venture capital funds. Indico Capital Partners - Sociedade de Capital de Risco, S.A. (“Indico Capital Partners”) is a Capital Management Company governed by Portuguese law. It publishes the following information on its website in accordance with Regulation (EU) 2019/2088 on sustainability-related disclosure requirements in the financial services sector. Unless information is explicitly provided in relation to a specific fund managed by Indico Capital Partner, the following statements refer to Indico’s management and investment decision-making processes in general.
Indico Capital Partners first started its investments in tech startups: Web3, Artificial Intelligence (AI), big data, enterprise SaaS, fintech and marketplaces, among others. And most recently in ocean related startups and SMEs with the aim of giving them scale and enabling their global expansion and positive impact in terms of climate action. Ocean-related startups can be tech, biotech or hardware focused but also aim to back innovative industrial SMEs with global expansion potential.
Indico Capital Partners is convinced that the active management of ESG related issues has an impact on the financial performance of our portfolio and helps us grow profitable and sustainable business practices. As such, Indico Capital Partners continuously monitors the environmental or social characteristics of the Funds it manages.
Integration of Sustainability Risks (SFDR - Article 3)
Indico’s investment decisions has sustainability risks integrated, which include the following: Environmental risks; Social risks; and Governance risks.
No consideration of principal adverse sustainability impacts (SFDR - Article 4)
Indico Capital Partners recognizes the importance of the Principal Adverse Impacts of investment decisions on sustainability factors. We are developing internal frameworks to identify, evaluate, and prevent principal adverse impacts on ESG criteria, the assessment of ESG related risks and opportunities, the collection, quantification and reporting data as an integral part of Indico’s investment strategy.
Remuneration and integration of sustainability risks (SFDR - Article 5)
Our remuneration policy is consistent with the integration of Sustainability Risks both in the long term and with respect to more short-term variable compensation.
Remuneration is generally provided on a fixed basis and may include participation in the firm’s annual performance, which considers both financial criteria and firm’s external validation of its ESG policy.
Indico Capital Partners receives a mandate by every single investor to manage her or his savings based on strict criteria of prudence and informed decisions. Remuneration policy also considers the contribution to effective risk management both company and its portfolios. Our risk management approach considers financial risks, regulatory, security and fraud, operational risks, with special attention to the impacts on the environment and all stakeholders.
Considering the limited impact of the variable remuneration on the risk profile of the funds and the nature of the business of Indico Capital Partners, we believe remuneration components are not based on the performance of the Funds and that there is no risk of misalignment with the sustainability risks associated with the investment decision making process of the Company in respect of the Funds.
SFDR Product Categorization (SFDR - Article 10)
Indico’s Funds pursue a venture capital strategy and focus on investments in startups that develop transformative technologies to fundamentally change our lives by solving significant problems. Investees are predominantly startups that have a measurable positive environmental and social impact while building a scalable profitable business. These Funds promote environmental or social characteristics but do not have as its objective a sustainable investment. As such, Indico’s Funds qualifies both for Article 6 and Article 8 products, as follows:
- SFDR - Under Article 6
- INDICO VC FUND I;
- INDICO ACCELERATION FUND;
- INDICO OPPORTUNITY FUND.
- SFDR - Under Article 8
- INDICO BLUE FUND.