The EU has adopted ambitious goals for the advancement of sustainability within the financial sector. A major focus has been the implementation of frameworks so that end investors can obtain greater insights into the real level of sustainability in their investments.
The EU has adopted several regulations to promote sustainable investments. For Core Sustainability Capital A/S (“CS Capital”), Regulation (EU) 2019/2088 (the “Disclosure Regulation”) on sustainability-related disclosures in the financial services sector, and Regulation (EU) 2020/852 and amending Regulation (EU) 2019/2088 (the “Taxonomy Regulation”) on the establishment of a framework to facilitate sustainable investment, are particularly relevant.
The Disclosure and Taxonomy Regulation contain explicit information disclosure obligations and requirements for financial market participants to inform investors about whether and how their investment decisions affect the green and social agenda. The purpose of the regulation is to harmonize the financial investment information on sustainability so that investors can decide for themselves whether an investment is in fact sustainable and whether to invest in such, based on an informed choice.
Core Sustainability Fund I K/S is CS Capital’s first sustainable product, and has a sustainable investment objective in accordance with the Disclosure Regulation (see Article 9 of the Disclosure Regulation).
Sustainability risks are assessed and monitored throughout the whole investment process and lifecycle. A 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.
CS Capital focuses on reducing sustainability risks in order to protect the Funds’ returns wherever possible. Please find more information regarding CS Capital’s integration of sustainability risks here.
CS Capital considers principal adverse impacts of their investment decisions on sustainability factors on an entity level in accordance with point (a) of Article 4(1) of the Disclosure Regulation.
This statement has been made public on June 22nd 2023. It will be reviewed at least annually and will include information for the relevant reference periods. Please find the full statement in accordance with the Disclosure Regulation and the Delegated Regulation here.
The objective of the Responsible Investment and Sustainability Policy is to describe CS Capital and its funds under management’s commitment to sustainability and how it is integrated in principles, processes and guidelines.
CS Capital supports responsible investments benefiting the environment and society as a whole, as well as a sustainable financial environment characterized by good governance, ethics, integrity and accountability.
CS Capital focuses on active ownership to promote both the sustainable investment objective and the long-term value creation of CS Capital’s investments, and promote mitigating actions of sustainability risks.
As per CS Capital’s Remuneration Policy, both Investment Professionals and identified staff may receive a combination of fixed and variable remuneration in their roles as employees. Sustainability risks and opportunities are integral to the investment process for all of CS Capital’s existing and future funds, as sustainability is a screening tool and value creation lever for CS Capital’s investment thesis.
The policy is designed to encourage identified staff and Investment Professionals to prioritize long-term effects and avoid short-term risks in pursuit of personal gain. This is achieved by evaluating variable remuneration over a longer period, among other measures outlined in the policy. The balance between fixed and variable remuneration, combined with the integration of sustainability risks, promotes sound risk management for sustainability-related risks at CS Capital.