Statement on principal adverse impacts of investment advice on sustainability factors (Art. 5(a) SFDR – art. 11 RTS)
Estari Ltd (the “Financial Adviser”) assesses and measures the positive impact, as well as potential negative externalities, of investment opportunities. In that context, the Financial Adviser considers the PAI of investment opportunities on sustainability factors throughout all major steps of the investment advice.
Our sustainability framework draws from best practices, including those developed by Future-Fit, GRI or the Impact Management Project. It is compliant with the EU Taxonomy. The PAI are assessed during preliminary assessment and due diligence.
The Estari team carries out a preliminary sustainability assessment where it identifies and reports the PAI and major ESG risks, using its own sustainability framework. We identify key risks, set interim targets, prioritise actions, anticipate trade-offs, and track progress.
In the final phase of due diligence, a full sustainability assessment is carried out either by the Estari team or preferred partners to validate the main assumptions and describe how and to what extent the company has principal adverse impact, if any.
Then, we ensure the company has a clear plan to mitigate them and we participate in setting targets to improve over time.
Remuneration policy in relation to the integration of sustainability risks (Art. 5 SFDR)
Our team’s financial incentives are aligned with our impact mandate.
- 10% is automatically reinvested in social funds.
- 50% of the carried interest is linked to the impact performance of the fund. The performance is calculated individually, for each portfolio company. For each investee, Estari determines up to 4 impact-related KPIs (embedded in the sustainability charter of the Company), based on historical performance.