Our approach
V PLUS PLUS considers environmental, social and governance factors where they are material to investment value, risk and long-term performance. These factors form part of the firm’s investment and risk assessment process, in accordance with the relevant fund documentation and the applicable EU Sustainable Finance Disclosure Regulation (SFDR).
ESG is integrated into investment analysis where relevant, rather than treated as a standalone label. Where material, relevant findings are reflected in valuation, risk assessment and investment decisions.
Environmental, social and governance factors may affect investment value and risk where they are material. Governance failures, climate-related exposures or social factors may therefore be considered as part of the broader risk assessment, depending on the nature of the relevant investment strategy.
Where applicable, alignment of interests is supported through the relevant fund structure, governance framework and conflict of interest controls: duties defined by regulation, oversight exercised independently, and conflicts identified, managed and, where required, disclosed, in the interest of the funds and their investors.
Ethics at V PLUS PLUS is practical, not declaratory. It means acting in the best interests of the funds and their investors, identifying and managing conflicts of interest, being transparent about terms, costs and risks, and declining opportunities that are not consistent with the applicable investment strategy, governance framework or regulatory obligations. As a CySEC-regulated AIFM, these duties form part of the firm’s regulatory framework and are treated as a minimum baseline for the standards we apply.
Our drivers
We integrate environmental, social and governance factors into analysis where they are material to value and risk: asset by asset, not by label.
ESG findings can change a valuation, reshape a structure, add conditions to an investment or end our interest in a transaction.
In real assets
Energy efficiency, climate resilience, permitting and community impact.
In companies
Governance quality, management incentives, labour practices and regulatory exposure.
In portfolios
Concentration in activities vulnerable to environmental or social transition.
Statements made in accordance with the applicable provisions of Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector (SFDR), Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment and amending Regulation (EU) 2019/2088 (Taxonomy Regulation), and Commission Delegated Regulation (EU) 2022/1288 of 6 April 2022 supplementing Regulation (EU) 2019/2088 (SFDR Delegated Regulation).
A sustainability risk is an environmental, social or governance event or condition that, if it occurs, could cause an actual or potential material adverse impact on the value of an investment. In accordance with the SFDR, which has applied since 10 March 2021, V PLUS PLUS Ltd considers sustainability risks as part of its investment decision-making processes. Such risks are generally identified and assessed within the broader investment due diligence process. Sustainability risks may arise independently or affect, and contribute to, other investment risks, including market, operational, liquidity and counterparty risks. The AIFM therefore treats sustainability risks both as standalone risks and as cross-cutting risks that may affect other risk categories. Particular consideration is given to potential environmental and climate-related risks. Sustainability risks include, but are not limited to, risks arising from climate-related events and the physical consequences of climate change (“physical risks”), as well as risks arising from society’s transition towards a lower-carbon economy (“transition risks”). These risks may result in unexpected losses affecting the relevant investments. Social factors, including inequality, inclusion, labour relations, investment in human capital, workplace health and safety and changes in customer behaviour, may also give rise to sustainability risks. Similarly, governance shortcomings, including significant or recurring breaches of international standards, bribery and corruption, deficiencies in product quality or safety, and inappropriate selling practices, may adversely affect investments. Following an assessment of the likely impact of sustainability risks on the returns of the funds under management, V PLUS PLUS Ltd considers that such risks could adversely affect financial performance. The application of sector exclusions, due diligence procedures and risk-return assessment frameworks is intended to identify and, where appropriate, mitigate these risks. On this basis, sustainability risks are not currently expected to have a material adverse impact on the long-term financial returns of the funds. However, no assurance can be given that such risks will not have a material adverse impact in the future.
The remuneration policy of V PLUS PLUS Ltd is based on appropriate risk-management considerations and risk assessment. It does not encourage or reward excessive risk-taking, including the excessive assumption of sustainability risks, and is consistent with the integration of sustainability risks into the firm’s investment decision-making processes.
Principal adverse impacts are the most significant negative effects that investment decisions may have on sustainability factors, including environmental, social and employee matters, respect for human rights, and anti-corruption and anti-bribery matters. In accordance with the discretion available under Article 4 of the SFDR, V PLUS PLUS Ltd does not currently consider the principal adverse impacts of its investment decisions on sustainability factors in respect of the funds under management. This position reflects the size, nature and scale of the Manager’s activities, the investment strategies pursued by the funds under management, and the current availability, consistency, reliability and proportionality of the data required to assess the indicators set out in Table 1 of Annex I to Commission Delegated Regulation (EU) 2022/1288. The Manager will keep this position under review and may consider principal adverse impacts in the future if they become materially relevant to the applicable investment strategies, if sufficiently reliable and proportionate data become available, or if consideration is required under applicable law or regulation.
Unless otherwise stated in the relevant fund documentation, the funds under management do not promote environmental or social characteristics within the meaning of Article 8 of the SFDR and do not have sustainable investment as their objective within the meaning of Article 9 of the SFDR. For the purposes of Regulation (EU) 2020/852, the investments underlying the funds under management do not take into account the EU criteria for environmentally sustainable economic activities, unless otherwise stated in the relevant fund documentation.
How the standard described here is applied in practice: our philosophy, our process and the asset classes through which we invest.
Discover moreOur team is available to discuss the firm’s approach to ethics, ESG integration and responsible investment.
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