SFDR Website Disclosure
Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (“SFDR”).
When we say “sustainability risk”, we mean an environmental, social or governance (“ESG”) event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the investment.
- Our approach to the integration of sustainability risk in investment decisions (Art. 3 (1) SFDR)
The integration and evaluation of sustainability risks form part of the investment process implemented by Delta Partners.
Delta Partners is a venture capital fund manager. We make investments in early stage technology companies. As part of our investment decision-making process, we assess ESG risks that the investment may be subject to and consider whether these could have a material impact on the value of any of our investments.
Delta is committed to investing responsibly and embedding ESG in everything we do to accelerate positive change in the companies we invest in, through the lifecycle of our investments, from pre-screening to exit.
Delta aims to build businesses which will grow, provide employment and generate economic benefit in an environmentally and socially responsible manner, both during and after our ownership. As portfolio companies grow, the ESG risks and opportunities for them may increase in magnitude and scope. We believe that proactive ESG management can improve the performance of companies in all sectors. For Delta, we believe that a strong correlation exists between sustainable investment and the generation of strong returns for our investors.
Delta has adopted a policy which details the integration of sustainability risks in the investment decision-making process consistent with the above. In addition, the valuations of our funds’ investments are reviewed on a quarterly basis and revised where necessary after taking into consideration all issues facing the company, including any material ESG issues.
Our processes and procedures to consider sustainability risks include:
- incorporating relevant ESG opportunities and risks into our investment due diligence, analysis and decision-making processes. Integral to our due diligence process is an assessment of the target company’s ESG-related risks and opportunities and those material to the industry in which it operates. A component of the investment papers presented to the Investment Committee is an ESG section that serves to identify these ESG-related issues;
- screening prospective portfolio companies against our Exclusion List;
- seeking commitments to meet our Target ESG Standards from the entities in which we invest and its management team; and
- being active shareholders and incorporating relevant ESG issues into our ownership policies and practices and assisting portfolio companies in the development of action plans to adequately address any identified ESG-related risks and opportunities.
- Remuneration Policy (Art. 5 SFDR)
Delta Partners Limited meets the criteria to be “sub-threshold” for AIFMD purposes and is registered, without a need for full authorisation, for AIFMD purposes. Accordingly, Delta is not required to have a remuneration policy that is consistent with the integration of sustainability risks, except to the extent described below.
Remuneration is generally provided on a fixed basis and may include participation in the firm’s client funds’ carried interest. Remuneration levels are justified according to performance of the individual concerned. This will be reviewed as appropriate on a regular basis.
The firm’s general remuneration policy promotes sound and effective risk management with respect to business risks, ensuring that the structure of remuneration does not encourage excessive risk-taking. Delta also considers the effect of potential conflicts of interest on remuneration.
- Principal Adverse Impacts (Art. 4 (1) (b) SFDR)
Delta does not consider adverse impacts of investment decisions on sustainability factors, due to the fact that there are rarely adverse impacts on sustainability factors within the digital economy. Sustainability factors are environmental, social and employee concerns, respect for human rights and the fight against corruption and bribery.
Delta may choose at a later date to publish and maintain on its website the consideration of principal adverse impacts of investment decisions on sustainability factors.