To underscore the importance of ESG, we have a membership of the Principles for Responsible Investment (“PRI”), an initiative by the United Nations (www.unpri.org). This membership reflects our dedication to the principles and values upheld by Pride Capital Partners. As part of this commitment, we carefully exclude investments in certain segments, geographical areas, and activities. For instance, we do not invest in portfolio companies based in corrupt countries, industries sensitive to child labor, or the weapon industry.
Given our primary focus on investing in software and IT companies in Northwestern-Europe, we find it straightforward to meet most of these criteria. By making ESG part of the investment decision making process and monitoring the ESG performance of our portfolio companies, we ensure that responsible practices remain at the core of our operations, generating positive outcomes for our stakeholders and society as a whole.
In order to comply with the sustainable finance disclosure regulation (SFDR – Regulation (EU) 2019/2088), Pride Capital Partners B.V. (Pride Capital) makes the following disclosures.
A sustainability risk is defined as:
"an environmental, social or governance event or condition that, if it occurs, could cause an actual or potential material negative impact on the value of the investment".
Before any investment decisions are made on behalf of a fund managed by Pride Capital, an investment decision process is followed which in regard to specific investments includes due diligence that covers topics such as financial, legal and commercial due diligence. Pride Capital views ESG as a standard topic in the investment decision process and has developed an ESG due diligence questionnaire. Part of the investment decisions process is that Pride Capital assesses the risks attached to a potential investment opportunity, which includes sustainability risks. Identified sustainability risks are considered by Pride Capital as part of the investment decision making process.
In addition, Pride Capital pays staff a combination of fixed remuneration and variable remuneration (including a possible bonus). Variable remuneration for relevant staff also takes into account compliance with all policies and procedures which are in effect within Pride Capital, including those relating to taking into account sustainability risks on the investment decision making process.
Employees are made aware of the applicable policies and procedures when starting their employment with Pride Capital.
In accordance with article 4 sub 1 (b) of the SFDR, Pride Capital states that it does not consider adverse impacts of investment decisions on sustainability factors as set forth in article 4 sub 1 (a) of the Disclosure Regulation and therefore does not make the disclosures as described in article 4 sub 1 (a) of the SFDR.
At this stage Pride Capital does not consider the adverse impacts of its investment decisions on sustainability factors, (i) because Pride Capital could not reasonably gather and/or measure all the relevant data of the portfolio companies of Pride Capital, taking into account reasonable cost for clients and investors and (ii) due to the small size of the organization of Pride Capital, such disclosure as set forth in article 4 sub 1 (a) of the SFDR and the administrative burden in connection therewith would not be proportional.
Pride Capital continues to closely monitor the market developments (including the level of availability of the data) as well as the regulatory developments. Pride Capital will at least on an annual basis review whether and when to comply with article 4 sub 1 (a) of the SFDR.