Disclosures pursuant to the Sustainable Finance Disclosure Regulation (Regulation (EU) 2019/2088)
This disclosure applies to Futurum Ventures Management AS (“Futurum”) as an alternative investment fund manager registered with the Norwegian Financial Supervisory Authority.
I. Sustainability risks
Futurum Ventures Management AS considers sustainability risks in its investment decision-making process. As defined in the SFDR sustainability risks are environmental, social or governance events or conditions, the occurrence of which could have an actual or potential material adverse effect on the value of the investment. Futurum analyzes potential risks, including sustainability risks, in its due diligence process prior to investing.
II. No consideration of adverse impacts of investment decisions on sustainability factors
At this time, Futurum does not consider principal adverse impacts in the manner set out in article 4 of the SFDR of its investment decisions on sustainability factors and does not use the sustainability indicators listed in Annex I of the Regulatory Technical Standards (Delegated Regulation (EU) 2022/1288, “RTS”) to assess potential adverse impacts. Sustainability factors are environmental, social and employee concerns, respect for human rights and the fight against corruption and bribery.
Given that the SFDR, the Regulation (EU) 2020/852 (“EU Taxonomy”) and the accompanying RTS are relatively new legislative acts, there is very little practical experience or practice with regard to the application of their respective provisions. Therefore, substantial legal uncertainties would remain when applying those provisions to the strategies pursued by Futurum. Moreover, as a minority investor to early-stage startups, Futurm expects significant challenges in obtaining information of sufficient quality and level of detail from potential portfolio companies as would be required to meaningfully report on the principal adverse impact indicators set out in the regulatory technical standards accompanying the SFDR. Futurum will therefore not be issuing a principal adverse impact statement under article 4 of the SFDR.
Futurum will re-evaluate the integration of principal adverse impacts of its investment decisions in due course. In the meantime, Futurum remains free in its decision to use part of the sustainable indicators listed in Annex I of the RTS and/or an own set of indicators.
III. Remuneration policies in relation to the integration of sustainability risks
Futurum Venture Management’s remuneration policy promotes effective risk management and asset management in accordance with the investment mandates for The Fund.
Further, the remuneration policy is in accordance with the company's and The Funds' business strategy, overall goals, risk tolerance and long-term interests. The remuneration policy, and in particular concerning the variable part of the remuneration, shall not encourage risk-taking that is incompatible with the risk profile, the mandate or other founding documents for funds under management.
The integration of sustainability risks is part of the total risk assessment of the investments for The Fund and is hence included in all risk references in the remuneration policy. Importantly, the remuneration policy does not encourage excessive risk‐taking with respect to sustainability risks and the variable component is linked to risk‐ adjusted performance and not just short-term goals.
IV. Sustainability-related disclosures
In accordance with EU Regulation 2019/2088 on sustainability-related disclosures in the financial services sector (“Sustainable Finance Disclosure Regulation” or “the SFDR”), Futurum Ventures Fund I AS (“the Fund”) provides the following information:
1. Integration of Sustainability Risk:
The Fund takes into account sustainability risk in the investment decision-making process. Sustainability risk is defined as environmental, social or governance events or conditions that, if they occur, could cause an actual or potential material negative impact on the value of the investment.
2. Assessment of Sustainability Risk:
Sustainability risk is assessed alongside other relevant risk factors in our due diligence process and ongoing monitoring of investments. However, the Fund is primarily focused on maximizing financial returns for our investors, and sustainability considerations are not the main focus of our investment decisions.
3. Potential Impact on Returns:
The integration of sustainability risk in the investment process may affect the fund's returns both positively and negatively. By considering these risks, we seek to mitigate potential negative effects on the fund's long-term returns.
4. No Specific Sustainability Objectives:
The Fund does not have as its objective the promotion of environmental or social characteristics, nor does it have sustainable investment as its objective as defined in the SFDR.
5. "Do No Significant Harm" Principle:
The investments underlying this financial product do not take into account the EU criteria for environmentally sustainable economic activities.
The Fund will continue to monitor developments in sustainable finance and may choose to integrate additional sustainability considerations into our investment strategy in the future.
This document will be regularly reviewed and updated as necessary to ensure compliance with applicable regulations and industry best practices.