Mandatory disclosures under Regulation of the European Parliament and of the Council on sustainability-related disclosures in the financial services sector (EU) 2019/2088 (“SFDR”)
Sustainability risk policies statement
At Kernel Capital we recognise that companies with a strong environmental, social or governance (“ESG”) proposition can build a better business case. Integrating ESG criteria into our early-stage investment process enables us to mitigate risks and identify value creation opportunities. We believe that by embedding ESG throughout our portfolio management lifecycle, from investment decision making through to exit will ensure Kernel Capital is a responsible investor, enhancing the overall outcome for our Funds and ultimately the generation of strong returns for our investors.
Principal adverse sustainability impacts statement
Whilst we do assess various adverse impact criteria at the point of making an investment as part of our ESG Policy, at present we do not consider adverse impact reporting of our investment decisions on the express sustainability factors as set out under the SFDR. We have significantly less than 500 employees and do not currently deem it proportionate to our size, nature and scale of our activities to do so. The SFDR includes metrics which are not directly applicable to our portfolio of investee companies. Nonetheless, we wish to reiterate our commitment to ESG matters and to continue to monitor the regulatory framework as the position settles. We continue to keep our current position on the Principal Adverse Impact regime under SFDR under regular review.
Kernel Capital’s remuneration policy ensures an appropriate remuneration framework exists to support our strategic priorities. The Remuneration Policy motivates employees to achieve individual and Fund performance outcomes that deliver long-term sustainable results, adhere to legal and regulatory requirements, promote sound and effective risk management and avoid conflicts of interest.