Riverside Europe Partners S.à r.l.– EU Sustainable Finance Disclosure Regulation
Riverside Europe Partners S.à r.l. and Riverside Partners LLC (together the “AIFMs”) make the following disclosures in accordance with Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (the “SFDR”).
Integration of sustainability risks
Pursuant to Article 3 of the SFDR, the AIFMs are required to disclose their policies on the integration of sustainability risks in their investment decision-making process.
A sustainability risk means an environmental, social or governance event or condition that, if it occurs, could cause an actual or potential material negative impact on the value of the investment.
Such sustainability risks are integrated into the investment decision making and risk monitoring to the extent that they represent a potential or actual material risks and/or opportunities to maximizing the long-term risk-adjusted returns. In particular, to mitigate risks and identify the value potential of an investment, the AIFMs and their affiliates (“Riverside”) conduct thorough due diligence of sustainability risks on their investment opportunities.
No consideration of sustainability adverse impacts
The AIFMs do not consider the adverse impacts of investment decisions on sustainability factors (as defined hereafter) in the manner prescribed by Article 4 of the SFDR because non-financial data is still not available in satisfactory quality and quantity to allow the AIFMs to adequately assess the potential adverse impact. However, the AIFMs may at fund level, on a voluntary basis, take into account principal adverse impacts of the investment made which they consider relevant to that specific investment, the result of which will be disclosed in an annual “Principal Adverse Impact Statement” relating to the relevant funds.
The SFDR defines sustainability factors as environmental, social and employee matters, respect for human rights, anti-corruption and anti-bribery matters.
The AIFMs pay their staff a combination of fixed remuneration (salary and benefits) and variable remuneration (including bonus). Variable remuneration for relevant staff takes into account compliance with all of the AIFMs' policies and procedures as well as with the AIFMs’ internal risk management framework and risk limits, including those relating to the integration of sustainability risks. In this regard, the AIFMs’ remuneration policies do not encourage risk-taking which is inconsistent with their internal risk limits or with the risk profile of the funds that the AIFMs manages, including regarding sustainability risks stemming in particular from climate-related events or from the society’s response to climate change.