Our disclosure to sustainability
People Ventures management ApS, CVR-no. 42245399 and People Ventures Fund I K/S, cvr-no 43375997 (the ‘Fund’) makes the following disclosure considering sustainability-related aspects in accordance with Regulation (EU) 2019/2088 of the European Parliament and of the Council of the 27 November 2019 on sustainability disclosure requirements in the financial services sector (the ‘SFDR’)[1] and the Regulation (EU) 2020/852 on the establishment of a framework to facilitate sustainable investment (‘Taxonomy’)[2].
This is the first periodic report under SFDR for People Ventures that includes sustainability indicators why a comparison to previous periods is not feasible (December 2023/January 2024).
Now, more than ever, we at People Ventures hold the conviction that cultivating awareness of sustainability is pivotal in addressing global challenges of the future. Therefore, we are devoting more attention in terms of our investment practices. Our focus lies in supporting and investing in early-stage startups, with the anticipation that the sustainability indicators will align and grow alongside the companies.
Integration of sustainability risks in the investment process
The Fund understands a ‘sustainability risk’ to refer to:
‘Environmental, social or governance factors or conditions that, if it occurs, could cause an actual or a potential material negative impact on the value of the possible investment’[3].
When making investments, we therefore consider the ethical, environmental, and societal consequences of such investments and that the investments do not significantly harm any of the above-mentioned objectives. These objectives will be referred to below as ‘ESG Factors’. However, we see that the integration of sustainability risks is an evolving field, which is why we will review and modify these processes regularly.
At The Fund these ESG Factors are implemented through a ‘ESG Scorecard’. The ESG Scorecard refers to Factors such as ‘ESG Awareness’, ‘ESG Strategy’, ‘ESG Reporting’, and ‘ESG Mission’. The ESG Scorecard can be found upon request.
Every year we screen hundreds of startups, and as a part of the investment process for a potential fund investment, a high-level assessment of ESG-factors including human and labor rights, ethics, environment and governance factors is carried out and shall always comply with the Funds’ ESG and Investment Policy.
The established assessment consists of collecting relevant data, benchmarking to peers, dialogue about priorities and intellectual talks facilitated by The Fund. We believe that this will equip our portfolio companies with a stronger integration of sustainable processes.
Given the type of investments targeted by the Fund, the Fund Manager assesses the sustainability risks as such to possibly impact the returns of the funds only to a minor extent.
As of now, the Fund Manager does not consider impacts of investment decisions on sustainability factors as specifically set out in the SFDR. This is chosen as it is considered that the existing ESG Factors are appropriate, proportional and tailored to the investment strategy of the Fund. These will be assessed with time and altered appropriately.
Remuneration Policy
The Fund does not have a remuneration policy, and remuneration structures are not linked to the integration of sustainability risks
[1] https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32019R2088
[2] https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32020R0852&from=EN
[3] https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32019R2088 (14)