The Disclosure Regulation aims to provide more transparency in terms of environmental and social responsibility within financial markets, in particular through the provision of information on the sustainability of financial products (integration of risks and negative impacts in terms of sustainability ). Its objectives are to ensure alignment between commercial documents and the reality of practices, to ensure the comparability of products in these terms and to orient private investments towards more responsible investments. This regulation intervenes at the level of the entities (management companies, investment companies, financial advisers), but also at the level of the products. The publications of the companies and the pre-contractual documents of the products will be modified as a result.
The Disclosure Regulation firstly requires defining the classification of each product according to its characteristics. The definition of each of these categories:
NextStage AM's mission is to invest in a sustainable and responsible manner alongside talented entrepreneurs at the head of growth ETMs, champions in their market.
Taking into account the management process implemented in our funds, we have classified the funds as follows according to article 6 and article 8. No funds have at this stage been identified as falling under article 9.
Since the products have been classified in accordance with the provisions of the Disclosure Regulation, the regulatory documentation has been updated accordingly and each investor may consult the related amended documentation:
Sustainability risks are defined by the Disclosure Regulation on the Disclosure of Sustainability Information in the Financial Services Industry as "an event or situation in the environmental, social or governance field which, if occurs, could have a material adverse effect, actual or potential, on the value of the investment ”.
NexStage AM integrates sustainability risk management processes into its management. These processes evolve regularly through the strengthening of governance of ESG subjects, procedures and associated tools.
The current modalities for integrating sustainability risks into NextStage AM's activities are as follows:
Among the seven partners of NextStage AM, two are in charge of supervising ESG issues. They cover the ESG subject in the various governance bodies, and in the daily investment activity of NextStage AM.
NextStage AM actively participates in several French and international initiatives directly linked to ESG. By participating in these initiatives, NextStage AM affirms its commitment to environmental, social and governance issues, and strengthens dialogue and the sharing of best practices between investors.
NextStage AM integrates an ESG approach as part of its investment activities in the unlisted, at the different stages of the investment cycle:
Article 4 of the Disclosure Regulation on the Disclosure of Sustainability Information in the Financial Services Sector provides for greater transparency on the negative impacts of investment decisions. NextStage AM does not currently take these impacts into account for the following reasons:
• NextStage AM is not subject to this provision, not exceeding the threshold of five hundred employees.
• The availability and quality of data is currently limited.
• The implementation of the regulatory framework on this subject is still incomplete.
Consequently, NextStage AM considers that its governance of the ESG subject, its procedures and its tools (see also the statement concerning the integration of sustainability risks) enable it to understand the impact of its investment decisions on the factors sustainability more adequately than through the elements presented in Article 4 of the Disclosure Regulation.
Depending on the evolution of the regulatory framework, the improvement, availability and quality of data, NextStage AM reserves the right to take into account in the future the negative effects of investment decisions on the factors sustainability within the meaning of article 4 of the Disclosure Regulation.
Unlisted ESG report (2020)
ESG NextStage AM Charter
LinkedIn publication: https://www.linkedin.com/posts/nextstage-am_recrutement-privateequity-nextstage-activity-6808341278170865664-cIQo
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