Redbreast Associates N.V. (“Redbreast”) is a manager of investment funds. This means that Redbreast falls within the scope of sustainability regulation within the financial sector. These regulations mainly consist of:
- The Sustainable Finance Disclosure Regulation (“SFDR”) (Regulation (EU) 2019/2088); and
- Sustainable Finance Taxonomy Regulation (Regulation (EU) 2020/852).
Pursuant to the SFDR Redbreast is required to publish the following disclosures.
Sustainability risk policy
“Sustainability risk” within the meaning of the SFDR means an environmental, social or governance event or circumstance which, if it occurs, could have an actual or potential material adverse effect on the value of an investment fund’s investments.
Redbreast finances and supports third parties in the settlement of legal disputes and the recovery of damages (“cases”, each a “case”) (third party litigation funding). In principle, a separate investment fund is set up for each case. For each case, the legal feasibility, potential damages awards and return scenarios are assessed in advance. Sustainability risks generally do not play a role in the cases that Redbreast finances. Insofar as a specific case would entail sustainability risks, Redbreast will consider these in advance (i.e. prior to the decision to invest in a particular case) and include them in its decision-making. This can lead, for example, to a decision not to invest in a case.
No principal adverse impact statement
Redbreast does not promote environmental and/or social characteristics with its investment funds (“light-green” within the meaning of Article 8 SFDR) and the investment funds do not have sustainable investments as their objective (“dark green” within the meaning of Article 9 SFDR). With regard to sustainability, Redbreast therefore limits itself to assessing the impact of possible sustainability risks on the return of the investment funds in the manner described above under the heading “Sustainability risk policy”.
For these reasons, Redbreast currently does not specifically consider the potential impact of investment decisions in the areas of the environment and social affairs, employment, respect for human rights and the fight against corruption and bribery and therefore does not issue an annual statement on the most important negative sustainability impacts (also referred to as principal adverse impact statement, hereinafter: “PAI statement”).
The above may be reconsidered if the circumstances change, e.g. if Redbreast’s investment policy changes.
Redbreast does not fall within the scope of rules for remuneration for the financial sector and is therefore not obliged to have a remuneration policy. The employee remuneration policy pursued by Redbreast does not contain any incentives that could lead to sustainability risks being neglected when making investment decisions and when monitoring investments.