Insight Venture – Sociedade Capital de Risco, S.A., attaches great importance to the integration of sustainability risks, in its three aspects (Environment), Social and Governance ("ESG") in the pursuit of its activity.
The main objective is to create long-term value for our investors, participants and clients, ensuring the competitiveness of the entities invested by the Funds managed by Insight Venture, trying to promote a positive impact in the ESG domain.
In line with this concern, Insight Venture promotes the United Nations "Principles for Responsible Investment" (PRI).
In compliance with the applicable legislative framework in the field of sustainability, in particular Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosure duties in the financial services sector ("Sustainability Finance Disclosure Regulation" or "SFDR") and Commission Delegated Regulation (EU) 2022/1288, of April 6, 2022 ("Delegated Regulation"), Insight Venture hereby discloses its ESG Policy. This Policy defines how environmental, social and governance risks are incorporated and integrated into our activity.
Notwithstanding the prospect of gradual integration of ESG risks into decision-making, particularly investment decision-making, Insight Venture does not take into account the negative impacts of its investment decisions on sustainability factors. In accordance with the provisions of article. 4(1)(b) of the "SFDR" Regulation, supplemented with the provisions of Article 12 of the "Delegated Regulation", Insight Venture presents in Autonomous Statement the reasons why it does not consider, in relation to its investment decisions, the negative impacts on sustainability factors.
Given the importance of the ESG theme for Insight Venture and the expectations it has regarding its evolution, as well as its implications for Insight Venture's activity, it undertakes to periodically review its position regarding the way sustainability factors are integrated and considered.
From an Environmental point of view and as investors and service providers, the main concerns are:
The definition of investment rules and the incorporation of ESG factors in investment analysis
The digitalization and security of operations with dematerialization of processes in the performance of the activity
The promotion of a smart use of resources and reduction of the ecological footprint
From the point of view Social Insight Venture adopts the following practices:
Concern for the well-being of employees, ensuring a balanced management between professional and personal life
Balanced remuneration systems between the company's management and employees
Health protection systems across all employees
Gender equality, ages or other related issues are internalized and are an integral part of current concerns
From the point of view Governance Insight Venture adopts the following practices:
Active communication system between Management and Shareholders
Independent and professional management
Adoption of risk control practices and mechanisms to ensure business continuity
Sustainability risks
In the Funds managed and as a management entity, Insight Venture incorporates the analysis, monitoring and resolution of existing risks with an impact on sustainability into its investment decisions.
This weighting is considered throughout the investment, monitoring and exit process.
i. In the Pre-Selection of Projects: In this first process, it evaluates the framework in the company's exclusion policy and investment policy, considers factors such as sectors, objectives and exposure to risks, namely ESG risk;
ii. In Analysis and Assessment: In this phase, the selected projects are analyzed in more depth with the collection of complementary information, carrying out a risk classification that includes risk with an impact on sustainability through an analysis grid of ESG factors.
iii. In Investment Decisions: After a positive opinion reached in the previous phases, all results and classifications are compiled and analyzed so that an informed decision can be made;
iv. No Due diligence: The proposals and information that should be used as the basis for decision-making are documentally validated and, when necessary, audited;
v. Failure to Monitor Investments: Insight Venture is committed to monitoring and controlling all its investments, mainly with regard to compliance with pre-defined conditions with special relevance to the potential risks identified.
This weighting is considered throughout the investment, monitoring and exit process.
i. In the Pre-Selection of Projects: In this first process, it evaluates the framework in the company's exclusion policy and investment policy, considers factors such as sectors, objectives and exposure to risks, namely ESG risk;
ii. In Analysis and Assessment: In this phase, the selected projects are analyzed in more depth with the collection of complementary information, carrying out a risk classification that includes risk with an impact on sustainability through an analysis grid of ESG factors.
iii. In Investment Decisions: After a positive opinion reached in the previous phases, all results and classifications are compiled and analyzed so that an informed decision can be made;
iv. No Due diligence: The proposals and information that should be used as the basis for decision-making are documentally validated and, when necessary, audited;
v. Failure to Monitor Investments: Insight Venture is committed to monitoring and controlling all its investments, mainly with regard to compliance with pre-defined conditions with special relevance to the potential risks identified.
Failure to consider the negative impacts of investment decisions on sustainability factors
Insight Venture is not covered by the criteria defined in points 3 and 4 of article 4 of the SFDR.
Although Insight Venture monitors its investments with special attention to ESG factors, the negative impacts of investment decisions on sustainability factors are not considered.
The main reason is due to the fact that the universe of companies normally invested in by Insight Venture is mostly made up of small or medium-sized companies (SMEs), not having the resources and means to adequately consider the impacts.
As this is a subject that is constantly evolving and crucial, Insight Venture seeks to find compatible solutions for the reality of investments, and the information provided here will be updated in the event of changes.
Although Insight Venture monitors its investments with special attention to ESG factors, the negative impacts of investment decisions on sustainability factors are not considered.
The main reason is due to the fact that the universe of companies normally invested in by Insight Venture is mostly made up of small or medium-sized companies (SMEs), not having the resources and means to adequately consider the impacts.
As this is a subject that is constantly evolving and crucial, Insight Venture seeks to find compatible solutions for the reality of investments, and the information provided here will be updated in the event of changes.
Remuneration Policy
Insight Venture's current Remuneration Policy includes sustainable measures, which include:
i. Balanced remuneration systems between company management and employees;
ii. Alignment between Management's remuneration policy and shareholders' medium-term strategic objectives;
iii. Topics such as gender equality, age equality or other similar issues are internalized and form an integral part of current concerns.
Concerned about issues of sustainability risks in remuneration, the Company opted for a fixed remuneration system, which is expected to be complemented in the short term with a transversal, variable remuneration system that takes into account risk appetite and long-term values and interests. term of the Company. Therefore, this variable remuneration component should be based on long-term performance and take into account the current and future risks associated with it.
The policy relating to variable remuneration will be different from fixed remuneration, which includes payments, proportional and regular contributions to pensions or other benefits.
Variable remuneration will include additional payments or benefits that depend on performance and, in exceptional circumstances, other contractual elements, except those that form part of usual employment packages (such as healthcare, or proportional and regular pension contributions). Both cash and non-cash benefits must be included in the variable remuneration.
Management periodically reviews the company's remuneration policy, adapting fixed remuneration, other benefits and perks and variable remuneration, with the aim of ensuring its sustainability.
As remuneration policy is a fundamental topic for Insight Venture, there is a constant concern in its reassessment and adaptation of best practices so that it incorporates other risks in terms of sustainability.
i. Balanced remuneration systems between company management and employees;
ii. Alignment between Management's remuneration policy and shareholders' medium-term strategic objectives;
iii. Topics such as gender equality, age equality or other similar issues are internalized and form an integral part of current concerns.
Concerned about issues of sustainability risks in remuneration, the Company opted for a fixed remuneration system, which is expected to be complemented in the short term with a transversal, variable remuneration system that takes into account risk appetite and long-term values and interests. term of the Company. Therefore, this variable remuneration component should be based on long-term performance and take into account the current and future risks associated with it.
The policy relating to variable remuneration will be different from fixed remuneration, which includes payments, proportional and regular contributions to pensions or other benefits.
Variable remuneration will include additional payments or benefits that depend on performance and, in exceptional circumstances, other contractual elements, except those that form part of usual employment packages (such as healthcare, or proportional and regular pension contributions). Both cash and non-cash benefits must be included in the variable remuneration.
Management periodically reviews the company's remuneration policy, adapting fixed remuneration, other benefits and perks and variable remuneration, with the aim of ensuring its sustainability.
As remuneration policy is a fundamental topic for Insight Venture, there is a constant concern in its reassessment and adaptation of best practices so that it incorporates other risks in terms of sustainability.
Última atualização: 06/2024
