SFDR & ESG

Adelis Equity Partners disclosures on article 3, 4 and 5

Article 3 disclosure

The integration of sustainability risks in the investment decision-making process

Article 4 disclosure

No consideration of sustainability adverse impacts

Article 5 disclosure

Alignment of the remuneration policy with respect to integration of sustainability risks

Our ESG policy

Adelis promotes a sustainable future for business, society and the environment, and recognizes that its institutional investors have a duty to act in the best long-term interest of their beneficiaries.

Adelis aims to generate superior risk adjusted returns to investors through the acquisition, development and subsequent divestment of companies that fit its investment criteria. Adelis believes that responsible investing is an integral part in achieving its objectives. Adelis defines responsible investment as an approach to investing that aims to incorporate ESG factors into investment decisions, to better manage risk and generate sustainable, long-term returns.

ESG considerations form an integral part in achieving its objectives.

Adelis supports the UN’s sustainable development goals (SDGs) and believes that the following SDGs are particularly relevant for Adelis’ investment activities: Decent work and economic growth; Responsible Consumption and Production; Climate action.

Adelis does not invest in companies whose primary activities involve pornography and the sex industry, controversial weapons or coal extraction and coal power generation.

As part of its investment analysis, Adelis will seek to identify potential ESG risks and improvement areas, as well as potential ESG related value creation opportunities. An ESG analysis covering risks, improvement areas as well as opportunities is a mandatory component of any final investment recommendation brought to the Adelis Investment Committee for decision.

The ESG analysis shall put particular emphasis on the potential environmental and climate impact of a company’s activities, as well as the sustainability of its products and services from a climate change perspective. Other components of the analysis should include: Evaluation of ESG related practices at the company; Natural resource consumption; Compliance with basic requirements for good working conditions; Risk of corruption, bribery and irregularities; Risk of contributing to human rights violations; Presence of controversial products and services; Dealings with countries under sanction.

Where relevant, ESG related improvements are incorporated into the value creation plan included in the final investment recommendation.

A portfolio company’s board of directors is responsible for defining and implementing ESG related strategies and policies, subject to formal requirements set by Adelis. The requirements shall include: Define company specific ESG objectives and KPI:s, one of which must be the CO2 footprint of the business; Appoint a person responsible for sustainability to coordinate the company’s activities; ESG should be an agenda point on a board meeting at least once a year.

The deal team, which always includes at least one board member, is responsible for ensuring compliance with these requirements.

The Adelis Investment Committee is ultimately responsible for the implementation and follow-up of the Adelis ESG policy.

Adelis reports ESG objectives and an outline of ESG progress for each portfolio company to its investors. Material ESG related incidents in portfolio companies are reported without undue delay to the respective Fund’s Advisory Committee.

Adelis supports the Paris Agreement on Climate Change.