The new EU Sustainable Finance Disclosure Regulations (“SFDR”) came into effect on 10th March 2021.

SilverStreet and its Funds comply with the disclosure requirements applicable to ‘Article 9 funds’, the most stringent classification under SFDR.

SilverStreet and its Funds have a sustainable investment objective to seek attractive returns for investors whilst achieving a substantial positive social, environmental and climate impact.

The sustainable investment objective will be achieved by focusing investments on those parts of agricultural value chains where a positive social, environmental and climate impact is expected to be highest and by integrating the highest Environmental, Social and Governance standards in the investment cycle.

The purpose of the SFDR is to increase transparency regarding the integration of sustainability risks and opportunities by asset managers into their investment cycle with the aim of preventing ‘greenwashing’.

SilverStreet has, for a number of years, already:

• operated with a core objective that incorporates a positive social, environmental and climate impact;

• integrated impact and ESG criteria into its full investment cycle from pre-investment to exit;

• reported annually and in detail on its impact and ESG objectives; and

• maintained transparency on ESG factors.

We welcome the implementation of the new SFDR as we believe that it will help investors to better differentiate between financial products that claim sustainability credentials.

To read more about our Impact and ESG approach, refer to our Annual Impact and ESG Report here.

What is the classification of funds under SFDR?

Article 9:  Funds which have a sustainable investment objective as defined in SFDR (broadly, funds with a non-financial objective and provided portfolio companies follow good governance practices).

Article 8: Funds which promote environmental or social characteristics (provided portfolio companies follow good governance practices).

Article 6: Funds which may integrate sustainability risk in investment decision-making but may otherwise have no specific ESG focus.