Sustainability Related Disclosures
Family Trust is committed to a sustainable investment approach, which forms a vital part of our values and culture. We integrate Environmental, Social and Governance (ESG) considerations both into all our investment decisions as well as continuously into the management of our portfolio companies.
Family Trust is an alternative investment fund manager within the meaning of the German Investment Code (Kapitalanlagegesetzbuch, KAGB) and as such publishes the following information in light of the consideration of sustainability-related aspects in accordance with Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability disclosure requirements in the financial services sector (SFDR).
Article 3: Transparency of sustainability risks
Family Trust considers sustainability risks as part of their investment decision-making process. Sustainability risks are environmental, social or governance events or conditions, the occurrence of which could have an actual or potential material adverse effect on the value of the investment. Family Trust considers sustainability risks as part of its due diligence process prior to any investment. This also includes an assessment of sustainability risks. Such assessment is being conducted through an informal process as appropriate in light of the circumstances of the individual case. The results of such assessment are taken into account when the investment decision is being taken. However, Family Trust remains free in its decision to refrain from investing or to invest despite sustainability risks, in which case Family Trust can also apply measures to reduce or mitigate any sustainability risks. At all times, Family Trust will apply the principle of proportionality taking due account of the strategic relevance of an investment as well as its transactional context.
Article 4: Transparency of adverse sustainability impacts at entity-level
Family Trust does not consider principal adverse impacts of its investments on sustainability factors as defined in the SFDR. Consequently, it abstains from utilizing the sustainability metrics enumerated in Annex I of the Delegated Regulation (EU) 2022/1288, commonly referred to as the Regulatory Technical Standards („RTS“) for the identification and evaluation of potential adverse impacts. Given the recent introduction of legislative acts such as the SFDR, the Regulation (EU) 2020/852 („EU Taxonomy“), and particularly the RTS, which prescribe sustainability metrics and data acquisition processes, there exists limited practical experience regarding their application. This leads to legal and practical ambiguities when applying these provisions to Family Trust’s strategies. However, as legal uncertainties dissipate and market practices mature, Family Trust will assess the principal adverse impacts of its investment decisions in line with SFDR and RTS indicators.
Despite opting out of adherence to the PAI regulation, Family Trust has actively integrated positive ESG initiatives and policies into its operations, aligning with its overarching dedication to ESG concerns.
Article 5: Transparency of remuneration policies in relation to the integration of sustainability risks
As a registered alternative investment fund manager within the meaning of section 2 (4) of the German Investment Code, Family Trust does not have and does not need to have a renumeration guideline or policy in accordance with the requirements of the KAGB.
Most Recent Update: 02.01.2025