Responsible Investment

Holland Capital is convinced that investing extends beyond traditional topics such as finance and efficiency. A clear Environmental, Social and Governance (ESG) policy is used as an important method for identifying and managing risks. In addition, we contribute with our ESG policy to promote a sustainable future for companies, society and the environment. This is how we create value within both our portfolio companies and Holland Capital itself.

Sustainable Development Goals

The Sustainable Development Goals (SDGs) are 17 goals developed by the United Nations that serve as a global compass for sustainable development. Due to our focus on Healthcare & Technology, we have an impact on SDG 3. In addition, we have embraced three additional SDGs in our ESG policy.

Holland Capital contributes to the following 4 SDGs:

  1. Good health and well-being
  2. Gender equality
  3. Decent work and economic growth
  4. Responsible consumption and production

ESG objectives

Together with our strategy and core values, we have translated the four selected SDGs into the following five ESG objectives:

These ESG objectives also guide the ESG policy of our portfolio companies and our own organization. The objectives are included in both the pre-investment phase (selection and due diligence) and the post-investment phase (monitoring). We also encourage our portfolio companies to formulate their own ESG policy.

Stimulate health and well-being;

Stimulate diversity and equal opportunity, regardless of sex and background

Stimulate good and transparent entrepreneurship, guided by ethical principles;

Increase economic productivity by innovation, technological modernisation and creativity;

Limit the use of natural resources and decrease the emittance of greenhouse gases.

Initiatives

Holland Capital has endorsed the UN Principles for Responsible Investment and acts according to these principles. We are also proud to be affiliated with the organizations below. Their initiatives enable us to implement our ESG policy.

Good health and well-being

Gender equality

Decent work and economic growth

Responsible consumption and production

SFDR

On March 10, 2021, the European Sustainable Finance Disclosure Regulation (Regulation (EU) 2019/2088, SFDR) became applicable. This regulation emerged from the EU’s 2018 Action Plan on Sustainable Finance[1] and is thus part of wider efforts at European level to make the financial sector more sustainable.

The SFDR requires fund managers like Holland Capital Management B.V. to provide information with regards to (inter alia) the integration of sustainability risks, the consideration of adverse sustainability impacts, and where applicable, the promotion of environmental or social characteristics, and sustainable investment as an investment objective.

In accordance with the SFDR, Holland Capital makes the following disclosures in respect of:

(i)              Integration of sustainability risks in the investment decision making;

(ii)             Principle adverse impact statement; and

(iii)            Remuneration policy.

Integration of sustainability risks in investment decision making

A sustainability risk means “an environmental, social or governance event or condition that, if it occurs, could cause an actual or potential material negative impact on the value of the investment“.

Before an investment decision is made on behalf of a fund that Holland Capital manages, an investment decision process is followed. Part of the investment decisions process is that the Holland Capital assess the risks attached to a potential investment opportunity, which includes sustainability risks. Identified sustainability risks are taken into account by the investment committee and the board of Holland Capital when making investment decisions.
The portfolios and investments that Holland Capital manages do not promote sustainability features or do not have sustainable investment as their objective, as referred to in Articles 8 or 9 of the SFDR. Due to our investment focus on technology and healthcare we do not come across severe climate-related risks. Though, as described above we have incorporated a climate-related objective in our ESG activities.

Principal adverse impact statement
In accordance with article 4 sub 1 (b) of the SFDR, Holland Capital states that it does not consider adverse impacts of investment decisions on sustainability factors as set forth in article 4 sub 1 (a) of the Disclosure Regulation and therefore does not make the disclosures as described in article 4 sub 1 (a) of the SFDR. Given the small size of the organisation of Holland Capital, such disclosure as set forth in article 4 sub 1 (a) of the SFDR and the administrative burden in connection therewith would not be proportional.

Renumeration policy
Employees play a crucial role in achieving the Holland Capital objectives and therefore form a central part of the organization. Holland Capital attaches great importance to the development of the competences of its workforce.

Compensation depends on the job profile, experience and personal development. This is determined according to the Holland Capital salary model. Holland Capital regularly benchmarks its salary to ensure that our remuneration policy remains in line with the market and that the balance between the fixed and variable component of remuneration shall be reasonable and not encourage excessive risk taking.
During the performance review of the partners and employees of Holland Capital, the compliance with the ESG policy applicable within Holland Capital is taken into account, which includes the integration of sustainability risks in respect of investments.

1We refer to the website of the European Commission for more background information: Renewed sustainable finance strategy and implementation of the action plan on financing sustainable growth | European Commission (europa.eu)

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