Kairos Partners SGR, the management company of the closed-end fund called Kairos Ventures ESG One, is aware that ESG (environmental, social, governance) themes are becoming increasingly important in today’s world and constitute both a threat and an opportunity for the global economy. The effort to reduce the risks associated with these factors has stimulated the search for innovative solutions in all fields and is expected to lead to substantial economic growth in the medium to long term.
In this context, the SGR has integrated dedicated processes for the analysis and monitoring of ESG parameters, allowing it to promote and increase value creation in the medium to long term.
The SGR has equipped itself with: i) a Responsible Investment management policy; ii) an investment procedure for the Fund that takes into account ESG aspects (as indicated in section 4) and iii) internal tools developed to analyze the ESG themes of the companies potential target for investment.
The investment policy of the Fund focuses on companies (hereinafter referred to as “Companies” or “Startups”) operating in sectors and markets characterized by the technological and commercial challenges arising from the post-pandemic Covid-19 recovery and on opportunities arising from the resources of the so-called Recovery fund. The Fund will have as its main focus of investment innovative companies operating in the following sectors: (i) healthcare and health technologies; (ii) digitization, software, internet of things, artificial intelligence and cyber security; (iii) new space economy; (iv) green revolution, sustainability and ecological transition.
The Fund intends to qualify as an OICR that mainly invests in innovative startups or SMEs and, therefore, it is expected that such investments will represent at least 70% of the total value of the Fund’s assets resulting from the management statement.
The investment operations will be the so-called early stage and growth/expansion capital round, intended as investments to support companies in the early stages of life.
The target companies of the Fund, i.e. high-tech startups and the reference sectors mentioned above, make the Fund’s strategy aligned with some of the United Nations (UN) Sustainable Development Goals (SDG) defined as, for example:
Objective 3 – Ensure health and well-being for all and for all ages;
Objective 7 – Ensure access to affordable, reliable, sustainable and modern energy systems for all;
Objective 8 – Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all;
Objective 9 – Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation;
Objective 12 – Ensure sustainable consumption and production models;
Objective 13 – Promote actions at all levels to combat climate change.
In this context and in line with the above-mentioned Sustainable Development Goals (SDGs), the Fund promotes the following environmental characteristics:
– Sustainable use and protection of water;
– Prevention and reduction of pollution;
– Mitigation of climate change;
– Adaptation to climate change.
The social characteristics mainly concern:
– Human capital development;
– Respect for diversity;
– Health and safety at work;
– Involvement of local communities.
In addition to these general considerations, the Fund adopts appropriate measures in the analysis and management of ESG issues as described in section 4.