Responsibility

Responsibility and ESG principles

Armada is committed to responsible investing. As a financing provider, Armada believes that responsible investing and ESG (Environmental, Social and Governance) are important aspects when evaluating the debt service capacity of the portfolio companies’ and when managing investment risks and returns in the short- and long-term.

Armada is fully committed to promoting sound ESG principles. Sustainability factors are an integral part of our investment process and due diligence, consisting of a structured assessment of both opportunities and risks. Armada ensures that the portfolio companies have the approach and the guidance they need to achieve their sustainability goals and Armada is actively working together with them in achieving these goals.

Read more on our approach in our Responsible Investment Policy.

Notice on EU Sustainable Finance Disclosure Regulation (SFDR)

The EU Sustainable Finance Disclosure Regulation (“SFDR”) 2019/2088 involves new transparency obligations and periodic reporting requirements for fund management companies at both a product and company level. The SFDR requires financial market participants to publish on their websites:

• Information about their policies on the integration of sustainability risks in their investment decisions
• Information on how they consider principal adverse impacts of investment decisions on sustainability factors or if they do not consider adverse impacts of investment decisions on sustainability factors, clear reasons for why they do not, including information as to whether and when they intend to consider such adverse impacts
• Information on how integration of sustainability risks is included in their remuneration policies

Policies on the integration of sustainability risks

Sustainability risks, being environmental, social or governance events, if they occur, could cause a negative material impact on the value of the investments, are considered by Armada in its investment processes and due diligence procedures.

Read more on our approach in our Sustainability Risks and Principle Adverse Impacts document.

Remuneration

Armada’s remuneration principles are specified in the Remuneration Policy. The remuneration is not in conflict with principles specified in the Responsible Investment Policy.

Principal Adverse Impacts (PAI)

Armada Credit Partners Oy (Business ID 2306633-6 ) (hereinafter « Armada ») considers principal adverse impacts of its investment decisions on sustainability factors. The present statement is the consolidated statement on principal adverse impacts on sustainability factors (“PAI”) of Armada. Armada’s PAI statement can be seen here.

Armada has currently the following funds: IV, V and VI. Of these, funds IV and V are classified as Article 6 funds. Armada’s funds IV and V do not make new platform investments anymore. Armada’s Article 6 funds have not taken PAI into account as the funds were closed prior to the Sustainable Finance Disclosure Regulation 2019/2088 (“SFDR”) came to force and also before Armada’s policies regarding PAI consideration were implemented. At the present, Armada has one fund at a marketing stage, VI, that is classified as Article 8 fund and will consider PAI.

Armada considers the PAIs described in the following table. Armada’s approach to identifying and prioritizing PAI as well as Armada’s engagement policies, reference to international standards and the availability of the historical comparison is addressed at the end of the table.

Armada’s full statement on principal adverse impacts of investment decisions on sustainability factors can be found here in English (link). Summaries of the PAI statements can be found here in Finnish (link), Swedish (link), German (link), French (link) and Spanish (link).

Armada Fund VI

Sustainability related disclosures: link to the document can be found here.