Superhero Capital aims to maximize returns to its funds’ investors by selecting the most promising investment opportunities and by developing the funds’ portfolio companies. In addition to their impact factor, we believe that environmental, social and governance (ESG) issues can have the potential to increase returns. The same applies to mitigation of adverse sustainability risks, and consequently, both ESG issues and sustainability play an important role in our investment process. We consider the sustainability and potential environmental impact of our portfolio companies’ activities as well as their social responsibility and corporate governance across all stages of our investment process.
ESG issues such as sustainability, corporate citizenship and governance are part of our selection process and play an important role in investment decisions. Strong performance by a company from a sustainability and ESG perspective increases the likelihood of an investment. On the other hand, companies that fail to meet minimum sustainability and ESG expectations or are engaged in business operations in controversial industries or industries with heavy sustainability challenges will not be considered for investment.
After making an investment, we work with our portfolio companies in order ensure proper business practices from an ESG perspective as well as highlight the importance of sustainability both in internal and external operations. We encourage our portfolio companies to develop their own policies in light of their own business environment and values. Our approach and expectations vary depending on each portfolio company’s sector, geography, business model and other factors.
When exiting portfolio companies, we evaluate the potential ESG and sustainability impacts of the exit and consider issues such as the portfolio company’s expected future development and the fair treatment of its stakeholders. Sometimes portfolio companies end up closing down their operations. In such situations we focus on ensuring that relationships with different stakeholders (customers, employees, lenders, partners, etc.) are concluded in a responsible manner.
The European Supervisory Authorities, ESAs, will draft regulatory technical standards in accordance with Articles 10 to 14 of Regulations (EU) No 1093/2010, (EU) No 1094/2010 and (EU) No 1095/2010 on the content, methodologies and presentation of information referred to in Regulation (EU) 2019/2088 of the European Parliament and of the Council in respect of sustainability indicators by 30 December 2021. Currently, we are waiting for the release of the drafts of the technical standards in order to implement the required detailed and technical methodology to our investment process and therefore, are not yet considering aggregate adverse impacts of investment decisions on sustainability factors until they are released by ESAs through the Joint Committee.
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