Periodic disclosure for the financial products referred to in Article 8, paragraphs 1, 2 and 2a, of Regulation (EU) 2019/2088 and Article 6, first paragraph, of Regulation (EU) 2020/852
Product name: Stella One Fonds GmbH & Co. KG
Legal entity identifier: 529900G4E3449ZXHI029
Reference period: 01.01.-31.12.2022
Environmental and/or social characteristics
Did this financial product have a sustainable investment objective?
|| ☒ No
☐ It made sustainable investments with an environmental objective: 0%
|☐ It promoted Environmental/Social (E/S) characteristics and while it did not have as its objective a sustainable investment , it had a proportion of 0% of sustainable investments
☐ in economic activities that qualify as environmentally sustainable under the EU Taxonomy.
☐ with an environmental objective in economic activities that qualify as environmentally sustainable under the EU Taxonomy
☐ in economic activities that do not qualify as environmentally sustainable under the EU Taxonomy.
☐ with a social objective
|☐ It made sustainable investments with a social objective: 0%
||☒ It promoted E/S characteristics, but did not make any sustainable investments .
To what extent were the environmental and/or social characteristics promoted by this financial product met?
The following environmental and/or social characteristics are promoted by Stella One Fonds GmbH & Co. KG:
- Climate mitigation
- The transition to a circular economy, the avoidance of waste, and recycling
- Compliance with recognised labour standards (no child labour, forced labour or discrimination)
What actions have been taken to meet the environmental and/or social characteristics during the reference period?
The fund promotes E/S characteristics by ESG Integration into the investment strategy.
Pre-due diligence phase
Investment opportunities are assessed on ESG aspects (the “ESG Assessment”) in two main dimensions (the “ESG Dimensions”):
- The “What” dimension: assessing the extent to which the products and services offered by the target company and its value chain positively contribute to the United Nations Sustainable Development Goals (“UN SDG’s”).
- The “How” dimension: assessing the ESG impact coming from the way the target company operates and the extent to which the management company can act as a catalyst/sparring partner in favour of a better management of externalities during the Ownership phase.
During the Pre-due diligence phase, any ESG Assessment is included in the deal assessment summary documentation prepared by the Investment Team (the “Deal Team”) and presented to the to the Investment Committee. The Investment Committee considers the ESG Assessment in the investment opportunity review process, and factors it in its decision whether to to issue a non-binding Term Sheet to the target company.
Due diligence phase
During this next phase, the Deal Team performs a more in-depth due diligence on the target company, including in respect of the ESG criteria a refinement of its pre-due diligence ESG Assessment (with a focus on the “How” dimension). A typical due diligence mainly consists of interviews with the target company’s management team, a vendor-related ESG review, desk-top document review (data room), onsite visits, reference calls, as the case may be.
Further, the Deal Team may decide to involve external advisers in the ESG due diligence. ESG and climate risks are considered while modelling the business plan of the target company and in the different scenario leading to its valuation.
The Deal Team then aggregates the data collected in the ESG due diligence and condenses it into a final ESG Assessment (again looking at the two distinct ESG Dimensions). This final ESG Assessment is included in the overall due diligence review summary and presented to the Investment Committee for final decision.
The investment Decision by the Investment Committee factors in all relevant ESG findings and considerations. Depending on whether material ESG risks are identified during the Due diligence phase, an action plan to address specific ESG issues or to commensurably mitigate ESG risks is included in a post-acquisition plan for the
The fund promotes E/S characteristics by the application of exclusion criteria, so called values-based screening.
The exclusion criteria are taken into consideration during the pre-due diligence phase. Potential assets are screened and if they fall into the exclusion list they are not taken into further consideration.
The environmental and/or social characteristics promoted by the Fund are its investment exclusions. The Fund shall not invest, guarantee or otherwise provide financial or other support, directly or indirectly, to companies, including Portfolio Companies:
- which the fund is aware is involved in illegal activities;
- which is engaged in the manufacturing, distribution or sale of arms or ammunitions (other than for game hunting purposes);
- which is engaged in the manufacturing, processing, distribution or sale of tobacco products or hard spirits (other than the distribution in an ancillary capacity through retailers such as supermarkets or restaurants);
- which is engaged in human cloning or genetically modified organisms; or
- which is directly linked to gambling.
In addition, the following actions have been taken:
The fund engages frequently with its portfolio companies to ensure that aim to best in class in terms of greenhouse emissions.