Our commitment to sustainable investments
We are strongly committed to responsible investing and promoting sound ESG-principles. ESG-factors are an integral part of our investments process and due diligence, consisting of a structured assessment of both opportunities and risks related to ESG. Together with other stakeholders, we ensure that our portfolio companies have the approach and the guidance necessary to achieve their ESG-related goals. We believe that by actively enhancing sustainability aspects across our portfolio companies, companies will strengthen their business models and long-term competitive advantages by being future-proof. Furthermore, we believe that responsible investing can enable higher risk-adjusted returns our investors and it is also the right thing to do.
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.
Consideration of principal adverse impacts
Armada is committed to a comprehensive ESG due diligence procedure in aits investment operations and has developed criteria which defines when an investment may present a sustainability risk.
Armada does not currently consider the adverse impacts of its investment decisions on sustainability factors set out in the SFDR, in particular because the relevant regulatory technical standards have not yet been finalized by the European authorities.
When the finalised Regulatory Technical Standards (RTS), supplementing the SFDR, are published and the rules are made sufficiently clear, Armada intends to comply with the relevant requirements by developing processes to gather information on the sustainability impact of its portfolio companies and by undertaking a relevant principal adverse impact assessment.
Armada’s remuneration principles are specified in the Remuneration Policy. The remuneration is not in conflict with principles specified in the Responsible Investment Policy.