Polestar Capital and the integration of sustainability risks
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 any sustainability risks into its investment decision-making process, and it is assured that the assets under management are not subject to uncontrollable ESG events that could materially reduce the value of these assets.
No consideration of principal adverse impacts statement
When making its investment decisions, Polestar Capital will not take the potential adverse investment impacts on sustainability factors into account as yet. Polestar Capital has chosen to do so for the time being, given that it is currently insufficiently clear how Polestar Capital must shape the detailed requirements imposed by the European legislator on Polestar Capital when taking such negative impacts into consideration.
Polestar Capital intends to take the adverse impacts on sustainability factors into account in its investment decisions as soon as it is clear which detailed requirements Polestar Capital must meet. Polestar foresees that these requirements set by the European legislator will be finalised in the second quarter of 2021. Once this is the case, Polestar Capital will start implementing these requirements in its organisation. Where possible, Polestar Capital will already implement preparatory measures beforehand in order to factor in any unfavourable impacts on sustainability factors.
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 of categories of staff whose work has a material impact on Polestar Capital’s risk profile. This is why Polestar Capital has linked the variable remuneration for that staff category to non-financial performance indicators as well, including sustainability risks.