Angelwise ESG Statements

Last updated: 29/09/2023

Introduction

At Angelwise, we are aware of our responsibilities to society, including those related to environmental, social, and governance ("ESG") matters. The transition to a low-carbon, more sustainable, resource-efficient, and circular economy will impact all economic actors, including the portfolio companies in which we invest. By considering sustainability factors when making investment decisions, we can not only contribute to a more sustainable economy and society but also believe that sustainability factors should not be overlooked when making sound investments.

Policy on Sustainability Risks

Responsible investing and avoiding sustainability risks will enhance the value of our investments: certain ESG-related events or circumstances can potentially have a (negative) impact on the value of our investments.

Therefore, we integrate an assessment of sustainability risks into our decision-making process when considering an investment. We mitigate sustainability risks by carefully selecting potential portfolio companies for investments and the sectors in which they operate. Additionally, through the long-term investments our funds make in portfolio companies, we can influence the activities and policies of those portfolio companies regarding sustainability, reducing sustainability risks for our investments.

Careful selection is also made when considering new potential investments in portfolio companies. Before making an investment, we conduct a thorough due diligence investigation of the target entities. This due diligence investigation includes a focus on the target company's compliance with applicable laws, including ESG-related legislation. The results of the due diligence and the assessment of whether the target complies with (ESG) laws are taken into consideration when making an investment decision.

As active investors, we seek representation on the boards of companies in our portfolio. Throughout the life cycle of our investments, we monitor whether these companies comply with (ESG) laws and human rights. We encourage entities in our portfolio to take initiatives that reduce carbon emissions, contribute to a more sustainable, resource-efficient, and circular economy, and promote diversity.



Not Taking into Account Adverse Sustainability Impacts

We are aware that our investment decisions and the activities of our portfolio companies can impact sustainability factors. By selecting portfolio companies for investment and monitoring them for ESG issues as outlined above, we seek to limit any adverse impacts on sustainability that our investments may have and contribute to a more sustainable economy.

Our ESG policy is in line with the values that have guided Angelwise since its inception. We strive to operate as a responsible corporation that also acts as a responsible investor, thus contributing to sustainable value creation within our portfolio companies. As an investor, in close collaboration with these companies, we aim to create strategic value that goes beyond the purely financial aspect and can provide solutions to broader socio-economic and societal issues.

For the purposes of Article 4 of Regulation (EU) No 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector ("SFDR"), however, Angelwise does not take into account the adverse impacts of our investment decisions on sustainability factors.

These adverse impacts are not taken into account because Angelwise is a small organization with limited resources and personnel and, consequently, is not fully equipped to precisely determine what the adverse impacts of its investment decisions would be based on the various criteria set out in the SFDR and the implementing legislation of the SFDR. Additionally, we invest in small and medium-sized companies that, due to their size and limited resources, are unable to provide the information necessary to accurately determine the adverse impacts of our investment decisions in accordance with the SFDR and the implementing legislation of the SFDR.

Therefore, for the reasons mentioned above, Angelwise cannot take into account adverse effects of investment decisions on sustainability factors in the future in accordance with Article 4 of the SFDR.