Our vision and strategy on sustainability matters and its integration in our investment processes and procedures is described in the Polestar Capital Sustainability Policy. For each investment risk that Polestar Capital has identified, Polestar Capital records a description of the risk, the management measures taken, and the monitoring of the management measures. The methodology described above is laid down in the Polestar Capital Risk Management Policy, which has been approved by Polestar Capital’s Executive Board. Polestar Capital’s Risk Management Policy has been elaborated in further detail into analyses, processes, and protocols.
Via this methodology, Polestar Capital (also) monitors the sustainability risks (an environmental, social or governance event or condition that, if it were to occur, would cause a real or potential material adverse effect on the value of the investment) that its investments may be exposed to.
Polestar Capital has integrated sustainability risks into its investment decision-making process.
Consideration of principal adverse impacts statement
When making its investment decisions, Polestar Capital considers the potential principal adverse impacts on sustainability factors. Polestar Capital addresses principal adverse impact in different stages of its investment process as outlined in the Sustainability Policy. Its focus is primarily on the environmental factors that align with the investment objectives, as well as violations of social norms such as the UN Global Compact principles.
Polestar Capital Remuneration policy and integration of sustainability risks
Polestar Capital’s remuneration policy is consistent with and will further a sound and effective risk management with a long-term focus. The remuneration policy does not induce any risk-taking that would exceed the risk level tolerated by Polestar Capital. The impact of the remuneration policy may be relevant to Polestar Capital, seen from an ESG point of view. When it comes to variable remuneration Polestar Capital has the opinion and policy not to provide any variable salaries to its employees. We believe that financial incentives does not trigger the most effective outcome in realizing our investment targets in general or ESG/impact targets specifically.