Sustainability Policy
ESG Policy Disclosure
No consideration of adverse impacts of investment decisions on sustainability factors
The Sustainable Finance Disclosures Regulation (Regulation (EU) 2019/2088) of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector ("SFDR"), requires financial market participants to disclose if they consider adverse impacts of their investments decisions on sustainability factors and how they integrate sustainability considerations into their investment process.
After consideration and detailed analysis of all the implications, requirements and formal disclosures outlined in SFDR (the "PAI regime”), Bynd Venture Capital has opted not to comply with the PAI regime and therefore Bynd Venture Capital SCR, SA does not consider any adverse impacts of its investment decisions on sustainability factors.
Regarding Bynd Venture Capital’s registered Funds under Management, we would also state that the investments underlying FCR Leading Ventures and FCR BA Venture Fund do not take into account the EU criteria for environmentally sustainable economic activities. FCR Bynd to Iberia III is a SFDR Article 8 Fund (SFDR Website Disclosure).
Bynd Venture Capital supports the direction on transparency and incorporation of sustainability risks regulated in the SFDR, and in the draft Regulatory Technical Standards which were published in April 2020, but maintains concerns regarding the difficult applicability of such policies due to the lack of reliable and readily available data in the market it operates. Bynd Venture Capital manages investments mainly in companies (start-ups), in a pre-seed and seed stage, which are, by nature, small entities with limited resources to be able to report the necessary data to assess the true scope of the investment impact on sustainability, according to SFDR. Furthermore, Bynd Venture Capital’s existing resources could impact the ability to determine, with precision, the adverse impacts of each investment according to SFDR’s criteria and the legislation that implements the mentioned criteria.
Although Bynd Venture Capital does not comply, as of today with the PAI regime, we will evaluate continuously the possibility of complying in the future.
Additionally, Bynd Venture Capital has implemented their own ESG policies (Sustainability Risk Policy and others) since we acknowledge the importance of it for our investors and believe we should commit to the ESG movement. We acknowledge that Sustainability risks might be material and have an impact on the returns and value of an investment and thus, created a standardized approach to mitigate the risk. The Sustainability Risk Policy makes transparent how Bynd Venture Capital incorporates Environmental, Social and Governance risks during the analysis of an investment. The Policy is applicable to Bynd Venture Capital’s operations and will constantly be revised and updated.
Bynd Venture Capital remuneration policy complies with the Portuguese legislation, follows international standards and the incentives are aligned between the Management and the Investors of the Funds. Per Article 5 of SFDR, considering that sustainability risks are managed at every Fund level, Bynd’s remuneration policy is consistent with its integration.
You can learn more here.
Bynd Venture Capital remains free in its decision to invest or not despite sustainability risks.
Last update: 20/08/2024