SMERemediumCap follows policies and practices of responsible investment and recognises that turning sufficient attention to environmental, social as well as corporate governance (“ESG”) related issues is essential in today’s business and investment environment.
Along with standard financial and governance issues we have incorporated environmental and social considerations in our investment process as well as our daily operations.
We are convinced that our engagement in environmental, social and governance related matters is a prerequisite for a sustainable long-term operation improving the performance and attractiveness of our portfolio companies and reducing our overall exposure to risk.
We encourage responsible investment and business principles in our portfolio companies, implementing a robust Environmental and Social Management System (ESMS).
Commercial, governance, management, environmental and social issues are equally important for a long-term sustainability in any organisation and when combined can provide additional value increase.
We understand that addressing environmental and social performance metrics while restructuring SMEs and mid-market companies via the provision of long-term financing will strengthen their competitiveness, while the economic performance of the portfolio companies will contribute positively to neighboring societies and local communities.
We have a comprehensive investment exclusion list and among others we do not invest in companies engaged in arms manufacturing, tobacco, hard spirits and gambling.
We always take an active shareholder role in each portfolio company and participate in strategic decision-making. The alignment of interest of key stakeholders (our investors, multilateral development banks, other shareholders of portfolio companies, employees, contractors, community) is of utmost importance to SMERemediumCap.
Our firm is conducting its operations in accordance with the highest legal and ethical standards and we promote the use of best corporate governance practices in our portfolio companies.
We take our environmental footprint seriously and seek to adopt and implement environmentally sound policies in our portfolio companies, and in our own internal operations. All our portfolio companies need to comply with applicable environmental regulations and standards and strive beyond compliance.
Through effective environmental and social due diligence, we monitor portfolio companies on an annual basis, having also in place appropriate grievance mechanisms for external stakeholder communication.
With our investment we seek to improve the environmental performance of our portfolio companies primarily through incorporating environmental considerations into product and service development, adopting new and efficient technological solutions, reducing the energy consumption, waste and emissions and fostering the adoption of environmental management systems.
Being a corporate citizen and with regard to our human capital and labour and social issues we remain committed to respecting human rights, supporting the payment of fair and competitive wages, providing a safe and healthy workplace, promoting long-term human resource planning, facilitating training and competence development, promoting work-life balance and promoting equal opportunity in employment practices and procedures.
Declaration of non-consideration of the adverse effects of investment decisions on sustainability factors
For the purpose of Article 7 (2) of Sustainable Finance Disclosure Regulation (EU) 2019/2088, adverse impacts of investment decisions on sustainability factors are not considered at the present time (given the company size and the absence of sufficient available data on these factors).
However, the Company follows policies and practices of responsible investment both in its own operations as well as in its business activities, i.e. portfolio companies.
The Company intends to monitor the industry position closely and update its approach in due course as further regulatory guidance and the above data on sustainability factors is made available. Thereafter, the Company intends to modify its existing policy, adopting a specific process, to consider the main adverse effects of investment decisions on sustainability factors.