Armònia is aware that the process of long-term value creation requires careful management of environmental, social, and governance risks capable of enhancing the value of a company for all stakeholders involved.
Since 2020 Armònia has been a signatory to the Principles for Responsible Investments ("PRI"), the six Principles for Responsible Investment promoted by the United Nations with the aim of helping to develop a more sustainable financial system through the incorporation of ESG factors into investment practices.
In 2020, Armònia also prepared and approved an ESG policy then updated in January 2022.
The importance of environmental, social and governance issues is considered in investment choices, not only for their ethical value, but also for their economic significance.
- Fostering efficient use of natural resources and protecting the environment
- Minimizing negative impacts and increasing positive environmental outcomes
- Supporting the reduction of greenhouse gas emission
- Promotion of an ethical and responsible work environment
- Management and development of human capital and promotion of diversity
- Health and safety of workers
- Governance and business ethics
- Transparency of information to stakeholders
- Promotion of international best practices in corporate governance
Art. 3 – Transparency of sustainability risk policies.
By subscribing to the PRIs and drafting the ESG policy, Armònia has committed to include environmental, social and governance considerations when analyzing an investment by concretizing this commitment both directly through the activities of the SGR and indirectly through the companies it invests in.
Armònia excludes from investment activity companies involved in criminal or illegal activities or involved in serious and systematic violations of human rights, serious damage of the environment or cases of manifest corruption, as well as in activities or sectors considered controversial as made explicit within the regulations of the funds managed each time.
For each investment opportunity, via ESG due diligence entrusted to leading specialized advisors, Armònia analyzes the risks and opportunities related to ESG issues relevant to the individual target company and its sector, taking into consideration current and future trends in sustainability, along with a careful and thorough assessment of the ethics and reputation of the relevant corporate management.
Based on the results of the above due diligence, Armònia identifies the most relevant ESG risks and areas for improvement for the target company by formulating a corrective action plan (ESG Action Plan) broken down into specific refinement goals.
The highlighted sustainability risks are also monitored and managed during the holding period, through the company's implementation of the ESG Action Plan and periodic review of the company's performance in relation to the developed adaptation plan.
Article 4 - Transparency of adverse sustainability effects at the entity level
Pursuant to Article 4(1)(b) of Regulation 2019/2088 (SFDR) - Transparency of Sustainability Adverse Effects at the Entity Level - Armonia SGR currently does not consider the adverse effects of its investment decisions on sustainability factors. This approach is applied in consideration of the current size of the SGR's investment activity, as required by the SFDR Regulations.
Armonia will continue to reassess its approach from time to time, and if deemed appropriate, the negative impacts of its investment decisions on sustainability factors at the overall entity level will be considered.
The assessment of Principal Adverse Impacts (PAIs) of investment choices may also be an intrinsic part of the approach to the management of investment funds that promote, among others, environmental and/or social characteristics, pursuant to Article 8 SFDR. In selecting the adverse impact indicators to be monitored, the SGR makes direct reference to the material issues of the sectors in which the companies in the portfolio of funds classified as defined in Article 8 SFDR operate on each occasion. Therefore, the SGR may consider and manage PAIs in accordance with the principle of relevance and materiality at the individual product level as provided in Article 7 of the SFDR.