The Széchenyi Alapok Zrt. (hereinafter referred to as “the Company”) makes the following disclosure regarding sustainability pursuant to Regulation (EU) 2019/2088 of the European Parliament and of the Council on sustainability-related disclosures in the financial services sector (hereinafter “SFDR” or “the Regulation”)
The Regulation is a milestone for the EU legislation on ESG (Environmental, Social and Governance) criteria. In this context, the SFDR requires the disclosure of specific information to financial market participants, including alternative investment fund managers, on their approach to integrating sustainability risks and taking into account the adverse effects of sustainability. In order to fulfill the obligations set forth in the Regulation, the Company publishes the following prospectus.
In line with the spirit of the Regulation, the Company supports all initiatives aimed at strengthening environmental protection and sustainable investment, including environmental, social and labor issues, and respect for human rights.
The Company is committed to meeting the objectives of the Regulation, for which in its investment decisions the Company takes into account its adverse effects on sustainability factors in accordance with Article 4 (1) (a) of the Decree.
The Company takes into account in the selection of projects and, during the screening, examines thoroughly the size of the target company, the nature of its activities and the scale of its activities, which may have an impact on sustainability factors. It also takes environmental, social and corporate governance (ESG) factors into account in its investment decisions, while seeking to stimulate local consumption through its investments, thereby reducing the ecological footprint of products and services. The manner in which sustainability risks are taken into account depends on the nature of the portfolio and the investment policy of the portfolio.
The Company refrains from investing in companies whose activities are considered harmful according to international standards, so not only economic and financial criteria, but also moral considerations apply in decision-making.
In the course of its monitoring activities, the Company continuously controls the operation of the portfolio companies affected by its investments, participates in the main decision-making of the main bodies, follows up the sustainability commitment of the companies concerned, and strives to enforce sustainability considerations as far as possible.
Other steps taken by the Company to take into account and manage sustainability risks:
- introduction of separate waste collection in the office area in order to reduce the environmental risks related to the release of waste and other pollutants;
- in order to comply with social and ethical principles, the Company excludes from its potential investments companies that may be associated with child labor, pornography, gambling, arms trade, speculative transactions;
- in order to prevent the destruction of primary forests, it does not support investment in companies whose activities are aimed at processing or using palm oil.
The Company incorporates the principles of SFDR into its decision-making processes and develops its relevant internal regulations in order to comply with the Regulation.
In addition to the above, the Blue Planet Climate Venture Capital Fund managed by the Company plays a significant role in enforcing the objectives of the Regulation and the ESG. The Blue Planet Fund aims to provide financing to competitive businesses that are committed to environment protection, sustainable development, ecological water management and mainly climate protection. In this context the Company actively seeks and prioritizes sustainability and climate protection investments.