Sustainability – Disclosures under Regulation (EU) 2019/2088 (SFDR)

Transparency of remuneration policies in relation to the integration of sustainability risks

Magnify Capital Partners – Sociedade de Capital de Risco, S.A.

Published on: 4 April 2023

Last updated on: 5 July 2024

Under 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), Magnify Capital Partners – Sociedade de Capital de Risco, S.A. (MAGNIFY) is required to disclose information on how its remuneration policy is consistent with the integration of sustainability risks.

For this purpose, according to the SFDR, sustainability risk means an environmental, social or governance (ESG) event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the investment.

MAGNIFY has designed a remuneration policy which intends to promote the compliance with the strategies, risk profiles and objectives established for its investment process and decision, which include ESG issues.

In particular, we highlight the following features of the remuneration policy that are consistent with the integration of sustainability risks in MAGNIFY’s activity:

  • The attribution of variable remuneration takes into account whether the policies for integration of sustainability risks in investment decision processes have been complied (or not) by the relevant employees or members of the management body (for example, basing its decision on a previously performed ESG due diligence).
  • The attribution of certain variable remuneration portions is deferred for a defined period, which allows to consider MAGNIFY’s business cycle and the relevant business risks, including sustainability risks.
  • The establishment of limits to the attribution of both fixed and variable remuneration, in order to avoid high risk taking, including sustainability risks.

MAGNIFY is currently reviewing and improving its internal procedures to better accommodate sustainability issues, so its policies, including the remuneration policy, may be amended during such process. Any changes or amendments to the information published on MAGNIFY’s website regarding sustainability matters will be duly explained and published, as required by the SFRD.