Responsible Investment
Explorer Investments aims to be at the forefront of international best practices and to translate this action into the creation of value for the investors in its funds, for the communities covered and for a sustainable future, through the development of the companies in its portfolio and with the consequent impact on the environment and society.
Explorer Investments donates, annually, 10% of its profits to support education programs, which will always be based on merit and excellence.
Integrity
We conduct our activities based on the highest ethical standards with all stakeholders.
ESG
Environmental, Social, Governance
Explorer Investments has been a signatory to the UN Principles for Responsible Investment (UN PRI) since 2018 and also sees the Paris Agreement as a key instrument for the sustainability of the financial system in the coming decades.
Environment
(i) Energy and productive efficiency; (ii) Reduction of plastic, water and paper consumption; and (iii) Reduction of environmental pollution.
Social
(i) Creating a healthy work environment; (ii) Continuous improvement of employees and (iii) Social Awareness.
Social Governance
(i) The ethics of the portfolio companies; (ii) Are supported by a Board of Directors with the proper competences and (iii) Are grounded on a robust internal control.
Our vision is to focus on the above ESG criteria.
Sustainable Development Goals
The previous referred ESG criteria are intended to contribute to the following Sustainable Devolution Goals:
Decent work and economic growth
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.
Industry, innovation and infrastructure
Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.
Responsible consumption and production
Ensure sustainable consumption and production patterns.
Explorer Investments is a private equity management fund governed by Portuguese law. As an alternative investment fund manager ("AIFM") it is subject to EU Regulation 2019/2088 of the European Parliament and Council published November 27, 2019 regarding the disclosure of information on sustainability in the financial services sector (Sustainable Finance Disclosure Regulation - "SFDR").
Explorer Investments is not covered by SFDR’s criteria set out in Article 4(3) and (4) of the SFDR which applies to larger institutions.
Currently Explorer Investments does not market or manage funds that promote, among others, environmental or social characteristics[ASM1] or a combination of both (as set out in Article 8 of the SFDR) nor those aimed at sustainable investments (as set out in Article 9 of the SFDR). In line with the above, the underlying investments of said funds do not consider the EU criteria applicable to environmentally sustainable economic activities.
Explorer Investments must always comply with the investment policies set out in the management regulations of the funds it manages and which, at this time, do not provide for characteristics or objectives such as those referred to in the preceding paragraph, even though this type of result may be collaterally achieved.
Sustainability risk
A sustainability risk is defined in the SFDR as an environmental, social or governance event or condition that, in the event of occurrence, could cause an actual or a potential material negative impact on the value of the investment.
As a diligent and judicious fund manager, Explorer Investments will look to integrate sustainability risk in its investment decisions, as well as the likely impacts of sustainability risks on the returns of the financial products, if these are relevant to the activity of the fund and aligned with the investment policies in the funds’ regulations.
No consideration of adverse impacts of investment decisions on sustainability factors
Explorer Investments does not take into account the adverse impacts of investment decisions on sustainability factors.
To this end it is relevant to consider the universe of companies in which Explorer Investments typically invests and lack of information, or at least of sufficient available and satisfactory data or which could be obtained at a cost and resources proportionate to Explorer Investments’ dimension and activity, meaning that it is not able to consider those impacts.
In addition, current investment mandates do not require that such factors must be considered when making an investment decision.
As this is a subject under continuous review, Explorer Investments intends to reassess its position on an annual basis updating, when possible, its practices and information made available here.
Remuneration Policy
The remuneration policy currently in force does not consider the integration of sustainability risks, although this may be adjusted in the future.
Final considerations
Explorer Investments is fully aware of the importance of sustainable practices within the financial system and of its responsibility as a fund manager to encourage its portfolio companies to introduce sustainability principles into their management. Hence, and in the interest of its investors and other stakeholders, Explorer Investments incorporates in its activity a series of responsible investment values and principles, and intends to progressively include environmental, social and corporate governance issues in the various decision-making processes throughout the life cycle of each investment.
As this is a matter under continuous review, the policies, procedures and information made available will be updated as needed.