OUR COMMITMENT TO SUSTAINABILITY

In a world where we are becoming more aware that everything we do has a significant impact on the environment, society and future generations, the Kairos Group has decided to join the United Nations initiative and become a signatory of the Principles for Responsible Investment (PRI) because we firmly believe in the importance of a responsible management philosophy that takes into account the long-term implications of investment choices and directs capital towards activity which, beyond generating returns, also create value for society.

Integrating ESG (environmental, social, governance) factors into our investment analyses and decision process was only the first step in a broader commitment, however.

According to the Art. 6, 8 and 9 of the EU Regulation 2019/2088 (Sustainable Finance Disclosure Regulation – “SFDR”), Kairos adopts guidelines that are applied in the management of products that integrate the sustainability risk, that promote environmental and social characteristics or that have sustainable investments as their objective. The same guidelines apply to assess and monitor the sustainability risks for the other products and services offered by the Asset Management Company.

SUSTAINABILITY-RELATED DISCLOSURES

Kairos believes that sustainability risk management will make it possible in the future to enhance issuers less exposed to events that could significantly reduce the financial value of the investment and therefore expects that the assessment and monitoring activities of the same risks will have a positive impact in the long term term on the returns of financial instruments.

The description of the approach adopted by Kairos regarding sustainability risk can be consulted in the “ESG Policy” (ART. 3 EU REG 2019/2088)

ESG POLICY

Negative effects for sustainability

Kairos Partners SGR, starting from 1 January 2023, takes into consideration the Principal Adverse Impacts (or “PAI”) of its investment decisions on sustainability factors for all the products and services provided (art. 4 reg UE 2019/2088).

Declaration on Principal Adverse Impacts (PAI) for sustainability

Remuneration and Incentive Policy

Kairos adopts specific ESG objectives consistent with its business model which it integrates into its corporate strategy, promoting sound and effective risk management in the context of sustainability risks also through a remuneration system that does not encourage excessive risk-taking ESG risks.

The description of the approach adopted by Kairos regarding the integration of sustainability risks can be consulted in the “Summary of the Remuneration and Incentive Policy”.

(ART.5 EU REG 2019/2088)

Summary of the Remuneration and Incentive Policy

We are signatories of the PRI, Principles for Responsible Investment, the United Nations initiative which contributes to developing a more sustainable global financial system.

We are members of the Italian Sustainable Investment Forum (ItaSIF), the not for profit association that aims to promote sustainable finance in the Italian financial community through research activities, projects and advocacy with Italian and European institutions.

We are signatories of the Carbon Disclosure Project (CDP), the international non-profit organization that intends to contribute to the construction of a sustainable economy for people and the planet.

Products that promote environmental and social characteristics or that have sustainable investments as their objective

Looking to a sustainable business culture, within its product offering, the Kairos Group has integrated investment solutions based on principles of environmental sustainability, respect for society and the responsible governance of the companies in which it decides to invest. Thus, Kairos actively supports sustainability features, increasing the value of its customers assets with an approach based on continuity and capital preservation, helping day after day to create a more just world.

Kairos adopts an active and dynamic management philosophy, based on fundamental analysis, with a deep “bottom up” study of the companies in which it invests, allowing the Group to identify the most efficient and best performing businesses. For its products that promote ESG characteristics, Kairos adopts ESG researches by Sustainalytics, a provider able to filter out the most responsible businesses from among the ones chosen, creating value and promoting sustainability criteria.

What does ESG mean? An ESG rating (or sustainability rating) is a synthetic opinion that certifies the stability of an issuer, security or fund from the perspective of environmental, social and governance performance. It complements the traditional rating – which only considers the economic and financial variables – and aims to improve the quality of the information available, taking into consideration additional factors connected to potential risks and opportunities while facilitating assessments and investment decisions.

It is important to emphasise that promoting sustainabile features does not mean financial performance ceases to be an objective. On the contrary, ESG factors are essential for an investment model that is modern, efficient and capable of more effectively adapting to different market cycles. Rewarding the most ethical companies means choosing businesses with a more pronounced orientation towards the future, capable of earning stakeholder trust, of evolving and, in the long term, achieving better results because of the competitive advantage received by, for example, investing in innovation or protecting the environment.

Beyond being the answer to the needs of customers who are sensitive to ESG issues, who want to promote the creation of sustainable value, choosing this type of financial product also means aligning one’s interests with a global megatrend that is creating a revolution in the investment world.

Choosing an ESG investment, sustainable and socially responsible, allows you to direct your savings towards an economy that seeks to respect the environment and society, creating a positive impact on the world without losing out on profit.