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Transform Today. Meet Tomorrow.
Sustainability PolicyIntroduction
Touro Capital Partners – SCR, S.A. (hereinafter, the “Company”) is a venture capital company that believes it must be governed by a philosophy that allies success with social and environmental responsibility
Following the entry into force of Regulation EU 2019/2088 of 27 November 2019 on Sustainability‐Related Disclosures in the Financial Services Sector, the Company hereby complies with the requirements of the Regulation by disclosing on this page how it positions itself in the market regarding sustainability matters and how these are embodied in its policies
Integration of sustainability risks into the investment decision-making process
The firm is governed by the highest ethical values, and its conduct is based on several principles, one of which is responsible investment. We therefore take into consideration, where applicable, the Principles for Responsible Investment (PRI), a United Nations initiative for the development of a more responsible financial system in the medium to long term
To align with PRI and ESG (Environment, Social and Governance) criteria within the scope of our internal regulations, we have established the following as fundamental pillars for investment in our Policy for Monitoring Portfolio Entities and Investment Criteria: (i) the relevance of corporate social responsibility issues, to the extent that the assets in the portfolio should, from the outset, adopt a social responsibility policy; and (ii) the commitment to the goal of carbon neutrality, namely through the implementation of a carbon neutrality plan in the portfolio companies, which aims to achieve a priori defined sustainability goals, such as the reduction of costs through behavioural changes in activities with high carbon emissions (e.g., reducing energy consumption or eliminating unnecessary travel) and the involvement of the parties concerned (by motivating employees and collaborators to reduce carbon emissions and demonstrating to investors that the portfolio companies measure and manage climate risks)
Accordingly, the Company adopts a practical vision of ESG risk assessment aligned with its investment strategy, with procedures and work plans, as set out in the Risk Management Policy contained in the Company’s Rules of Procedure, which will have an impact in the investment and portfolio management phases in particular, through measures such as the assessment of potential targets according to ESG criteria and the structuring of ESG plans to be implemented and monitored by a portfolio company management team
The Company currently manages only one fund – the TOURO I, FCR Fund – whose investment policy has as its preferred objective the acquisition of companies with a reasonable level of maturity and sustainability and with marked potential for industrial transformation and/or sectoral growth or consolidation, while taking the principles of responsible investment into consideration when investment opportunities present themselves. Other investments may be made outside this scope to the extent that they may be in the best interest of the investors and are provided for in the other terms of the investment policy
Negative impacts of investment decisions on sustainability criteria
In the pursuit of its activity, the Company aims to take into consideration possible negative impacts that its investment decisions may have on sustainability factors, and therefore uses appropriate due diligence to assess these impacts
To this end, we may, if necessary, resort to external sources of information regarding sustainability assessments of the assets in which we invest
Since we have only been in operation since April 2021, it is not yet possible to accurately assess, together with the portfolio companies, the main negative sustainability impacts of investment decisions or to define a set of related measures in this regard
Remuneration policy
The Company does not currently have a remuneration policy in place, and therefore does not yet integrate sustainability risks in this area nor disclose any information on this matter. However, the remuneration policy currently being prepared is applying a top-down logic to the ESG component to ensure all stakeholders pursue the ESG objectives established for the Company and its portfolio companies. The policy will also include equal remuneration for work of equal value for men and women