Sustainability Disclosures

Sustainability related disclosures

As a consequence of Regulation (EU) 2019/2088 (SFDR) on sustainability-related disclosures to be provided in the financial services sector, Adaptive Hedge Fund Management AB (Adaptive) as an authorized manager of alternative investment funds, provides information on how sustainability risks are integrated into our investment decision process.

We are convinced that good management of environmental, social and governance-related (ESG) matters is synonymous with good business, and work continously with the implementation of these areas in our own business, and as an integral part of our management.

Sustainability related risks

Adaptive acknowledges that sustainability risks that may have a negative impact on the return on our investments. A sustainability risk is defined as an environment-related, social or governance-related event or circumstance that, if it were to occur, would have an actual or potentially significant negative impact on the value of an investment.

As a fund manager, Adaptive has integrated sustainability risks into our investment decision and risk management process within the framework of our regulated management. The management of sustainability risks is based on the list of sustainability risks that the we have identified. 

Sustainability risks are managed contiunously in our investment process. Before an investment idea passes the idea stage, we make a qualitative analysis of the sustainability risks the Company has identified in the light of the theme of the proposed investment thesis. This is to assess whether the proposed ideas is exposed to any particular sustainability risk that needs to be managed before work on the paradigm progresses, or if such a risk disqualifies it from further exploration. An example would be an investment idea likely to fall within one our exclusion list. 

At later stage in the analysis process, we assesses the sustainability risks of the companies that have been identified as possible investments within a certain investment idea. The assessment consists of two parts: 

  • The first part is used to exclude companies that do not comply the requirements in relation to the Company’s exclusion policy (see sustainability policy).
  • The second part is a points-based system where each potential company is assessed based on a number of different ones ESG factors.

No consideration of principle adverse impacts (PAI)

The company has taken into considered the nature and size of our business and decided not to take into account, in accordance with Article 4 (1) (b) of SFDR, the main negative consequences of investment decisions on sustainability factors. This decision is mainly based on the lack of available reliable data. 

The Company will review this decision on a periodic basis, at least annually, in the light of developments in the market for available data, the final adoption of the technical standards of the regulations, and the Company’s organizational development.