Responsibility

Making a positive contribution.

Taking responsibility is in our DNA. We’re particularly aware of the great responsibility we carry for our portfolio companies, their employees and families, their home regions, suppliers and customers as well as the environment and our surroundings at large.

HERE YOU CAN FIND OUR RECENT ESG REPORT 2022

Afinum’s history spans more than two decades. Because of the special responsibility we carry, we’ve made good use of this time to define clear objectives both internally as well as at the level of our portfolio companies, and we’ve put relevant measures in place. These take into account the expectations of the above-mentioned stakeholders and ensure that we make a positive contribution on several levels.

For instance, Afinum has signed on to the UN Principles for Responsible Investment (UN PRI), is committed to the United Nations Sustainable Development Goals (SDGs) and has already achieved climate neutrality at the level of Afinum Management GmbH.

The UN Principles for Responsible Investment (UN PRI), defined in 2006, provide a framework for investment decision-making processes that are both sustainable and responsible. As a signatory, Afinum is fully committed to these principles.

Afinum supports the 17 United Nations Sustainable Development Goals. The goal of this UN initiative, which will run until 2030, is to achieve worldwide sustainable development economically, socially and environmentally.

Afinum makes a financial climate contribution and is partnering with ClimatePartner to achieve this goal. This company charts our CO2 emissions and offsets them by investing in trusted environmental projects.

We’ve never considered ‘value creation’ and ‘values’ to be contradictory. At Afinum, we’re not only convinced that we can reconcile our social and environmental responsibility with an attractive value enhancement perspective for our investors – we consider it an imperative. To be economically successful for the long term, companies will need to remain attractive to both customers and employees in the future – and they’ll need to be committed to sustainable development goals and be technologically future-viable, too.

Dr. Gernot EisingerManaging Partner

Sustainability has always been an important concern for us at Ledlenser. Afinum supports us in our ESG strategy and contributes experience, valuable guidance and a professional network. We’ve already achieved great things together and will continue to expand our positive contribution in the future.

Michael ReuterCEO Ledlenser
In detail

Responsible in every way.

Afinum Management GmbH

Becoming aware of our responsibility as a company doesn’t just happen by itself. This is why we regularly provide training to our own employees with the goal of raising awareness and conveying Afinum’s values to our team. Our focus lies on environmental, social and governance issues. During our training sessions, we also work out together how Afinum as a company, and each employee as an individual, can actively support the UN Sustainable Development Goals.

Focus on climate responsibility: To reduce the impact of our activities on nature and the environment, Afinum calculates its own annual carbon emissions and, through Climate Partner, offsets the consumption in tons. Beyond mere offsetting, our goal is to achieve a steady reduction of carbon emissions. For this reason, we regularly review and revise our internal guidelines with regard to such topics as travel activities.

Afinum is committed to being an attractive employer for all people, regardless of their geographical origins, gender or age. To ensure this, we have, among other things, launched a team diversity initiative and offer flexible working models specifically aimed at young parents.

After completing the onboarding training, each Afinum employee commits to Afinum’s Code of Conduct and undertakes to adhere to our compliance system. The principles laid down there serve as guidelines for our conduct and collaboration in both internal and external interactions.

Investment process

Responsible action is also a top priority for Afinum in the investment process. This builds on Afinum’s Code of Conduct and ESG checklist, the UN Principles for Responsible Investment (UN PRI) as well as the mandatory, detailed ESG Due Diligence with experienced partners.

What’s more, investments in industries that are incompatible with Afinum’s values are generally excluded. In all other cases, during the investment process, the mandatory, detailed ESG Due Diligence paints a clear picture of the company’s current situation. This assessment enables concrete goals to be derived early on, which we then discuss together with the management, along with strategic and financial goals. Ideally, the management goes on to implement initial measures in the first months of the holding period.

 

 

Portfolio

All managing directors of Afinum’s portfolio companies sign the Afinum Code of Conduct at the beginning of the collaboration. The parties involved evaluate the results of the ESG Due Diligence and, with this as a basis, develop a catalog of measures.

In order to continuously reduce carbon emissions, our portfolio companies rely on a combination of reduction and compensation with the aim of positioning the respective shareholding as a leading company within its own peer group when it comes to climate friendliness.

As an integral part of their home region, many companies make an invaluable contribution by supporting regional education and training programs as well as local institutions and sports facilities. Afinum welcomes and supports this. In addition, these companies work with Afinum to develop measures to make them an even more attractive employer for employees from diverse backgrounds, genders and ages, while also promoting equality.

Afinum’s Code of Conduct sets clear framework conditions. Violations of the principles of good corporate governance are systematically prevented.

Mandatory disclosures under the Regulation of the European Parliament and of the Council on sustainability-related disclosure requirements in the financial services sector (EU) 2019/2088 (“Disclosure Regulation”):

I. Transparency of sustainability risk policies (Article 3 SFDR)

Afinum Management GmbH (the “Fund Manager”) is a long-term investor that embraces its responsibility towards investors, portfolio companies and stakeholders in the wider ecosystem in which the firm and its portfolio companies operate. The Fund Manager takes sustainability risks into account as an integral part of the risk management processes and manages them through Afinum’s Code of Conduct and ESG Policy, the UN Principles for Responsible Investment (UN PRI) as well as the mandatory, detailed ESG Due Diligence with experienced partners.

The Fund Manager has a strict exclusion list as defined in the ESG Policy, which is applied fund-wide and prohibits investments in industries that are not deem ethical (e.g., weapons production and arms trade, gambling). Before entering into an investment, potential risks are reviewed together with the ESG Officer and the transaction team and discussed in the Investment Committee. Should the Fund Manager identify significant risks or issues during the ESG Due Diligence at the latest, it will not move forward with the transaction.

II. No consideration of adverse impacts of investment decisions on sustainability factors (Article 4 SFDR)

Article 4 SFDR provides for a framework aimed at achieving transparency with regard to any principle adverse impacts of investment decisions on sustainability factors. For this purpose, financial market participants such as the Fund Manager must disclose certain information (taking into account the Commission Delegated Regulation (EU) 2022/1288). Currently, the 500-employee criterion, as laid down in Article 4 (3) SFDR, will not be exceeded. Consequently, the Fund Manager does not consider any principle adverse impact of investment decisions on sustainability factors at entity level. In addition, the information provided by the portfolio companies in relation to the investments is currently only partially available. An acceptable data coverage for a PAI disclosure cannot be ensured for the time being. The Fund Manager will monitor developments with regard to available information and consider whether it is reasonably possible in the future to disclose the information required by the Article 4 SFDR-framework.

III. Transparency of remuneration policies in relation to the integration of sustainability risks (Article 5 SFDR)

As a registered AIFM within the meaning of section 2(4) of the German Capital Investment Code (Kapitalanlagesetzbuch), the Fund Manager does not have a remuneration guideline (remuneration policy) in accordance with the requirements of the German Capital Investment Code (Kapitalanlagesetzbuch). Accordingly, the integration of sustainability risks is not considered with respect to the determination of the remuneration.

 

(updated on 6th November 2023)

From entrepreneur to entrepreneur Get in contact