Approach

Sylvan SFDR Statement

SCROLL

01

SFDR Fund Manager Disclosures

Last Updated: June 2022

In accordance with the requirements of Article 3, 4, and 5 of Regulation EU 2019/2088 on sustainability-related disclosures in the financial services sector (“SFDR”),
The Sylvan Group (“Sylvan”) hereby publishes its policy and approach on the integration of sustainability risks in its investment decision-making process,
Principal Adverse Impact Statement (“PAIS”), and Remuneration policy.

SFDR Fund Disclosure
Sustainability Risk Policy

Under its mission to connect capital, business, and community to create fundamental solutions for important problems, Sylvan invests solely in companies and assets that can create value and grow by providing commercial solutions to key challenges faced by the world for a more sustainable world.

In accordance with Sylvan ESG and Impact(“ESGI”) Investment Policy, Sylvan aims to integrate social and environmental risks, or sustainability risks in our due diligence, decision-making process, and the management of portfolio companies. The policy also presents its adherence to international standards, ESGI governance structure, impact themes, ESGI integrated investment process, and so forth.

Furthermore, Sylvan ESGI Integrated Investment Process describes in detail how ESG factors are integrated into each of our investment phases, from initial screening through the exit process.

PAIS

No Consideration of Sustainability Adverse Impacts
Sylvan does not currently consider the principal adverse impacts of its investment decisions on sustainability factors due to a lack of quality, consistent and available data. By end of 2022, Sylvan intends to comply with the relevant requirements by developing processes to gather information on the sustainability impact of its portfolio companies and by undertaking a full principal adverse impact assessment.

Remuneration Policy

In accordance with the Sylvan Remuneration Policy, all identified staff and investment professionals are remunerated as employees, with a combination of fixed and variable remuneration. The policy encourages all identified staff and investment professionals to consider the sustainability aspects of their decisions and dis-encourage taking short-term risks in order to achieve personal gain.

02

SFDR Fund Disclosures

Last Updated: June 2022

The Sylvan Group (“Sylvan”) considers Sylvan Asia Growth Fund I, L. P. (“Fund”) an Article 8-type fund under Regulation EU 2019/2088 on sustainability-related disclosures in the financial services sector (“SFDR”), meaning that the fund promotes, amongst other characteristics, environmental and/or social characteristics, and that the companies in which investments are made follow good corporate governance practices.

SFDR Fund Disclosures
Integration of Sustainability Risks in Investment Decisions

The fund is managed by Sylvan, hence being managed by the Sylvan ESG and Impact(“ESGI”) Investment Policy.
In accordance with Sylvan ESGI Investment Policy, Sylvan actively assesses and integrates sustainability risks in the investment due diligence, decision-making process, and the management of portfolio companies.

Environmental and/or Social Characteristics

The fund promotes environmental and/or social characteristics in accordance with Article 8 in the SFDR. The fund follows Sylvan’s strategy within three investment themes: Innovation for Sustainable Life; Inclusive Society and; Climate Change.

  • Investments made within ‘Innovation for Sustainable Life’ and ‘Climate Change’ promotes smart green city, innovative agriculture and food technology, energy technology, climate resilience, clean water, and waste management - which are namely environmental characteristics of the fund in accordance with Article 8 in SFDR.
  • Investments made within ‘Inclusive Society’ promotes access to quality healthcare, inclusive finance, innovative education, and disruptive education pedagogies, which are namely social characteristics of the fund in accordance with Article 8 in SFDR.

Above environmental and/or social characteristics are assessed, measured, and monitored through ESGI management and reporting plans.

  • Target companies funneled through the initial screening process are further scrutinized under an ESGI due diligence process to assess their management of material ESG factors and impact potential.
  • Prior to finalizing the investment, the investment team and investee companies develop a tangible and coherent ESGI management plan including Impact KPI and ESG Improvement/reporting Plan. The indicators are individual to each company as they are closely related to the business model of each company.
  • Investee companies are required to submit ESGI data to Sylvan in accordance with the agreed terms and conditions set in the ESGI management plan.
  • Submitted data are internally assessed and published in our annual report.