Insight Venture incorporates ESG factors - Environmental, Social and Governance in its activity and in the analysis of its investments.
In the funds it manages, Insight Venture makes responsible investments in sustainable companies with the capacity to be productive while safeguarding their potential returns.
Being sustainable means actively pursuing goals such as the responsible use of natural resources, both in its own operations, as well as in those of its Clients and Suppliers, with total respect for social rights in the markets where they all operate, providing information to all its Stakeholders.
Insight Venture is responsible for the impacts it causes.
This commitment is transversal to the activity developed by Insight Venture and this responsibility is incorporated by the companies where it invests.
From an Environmental perspective 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 the dematerialization of processes in the performance of the activity
The promotion of a smart use of resources and reduction of the ecological footprint
From a Social perspective Insight Venture adopts the following practices:
Concern for the well-being of employees, ensuring a balanced management between professional and personal life
Balanced compensation systems between company management and employees
Health insurance across all employees
Gender equality, age and other issues are internalized as part of everyday concerns
From a Governance perspective Insight Venture adopts the following practices:
Active communication system between Management and Shareholders
Professional and independent Management
Adoption of risk control practices and mechanisms to ensure business continuity
Sustainability Risks
In the Funds managed by Insight Venture and as a management entity, it incorporates in its investment decisions the analysis, monitoring and resolution of existing risks that impact sustainability.
This consideration is taken into account throughout the overall investment, monitoring and exit process.
i. Pre-selection of Projects: In this first process, it assesses the project's fit with the company's investment policy, considers factors such as sectors, objectives and exposure to risks, namely ESG risk;
ii. Analysis and Evaluation: In this phase the selected projects are further analyzed with the compilation of complementary information, proceeding to a risk classification that includes risk with impact on sustainability through a grid analysis of ESG factors;
iii. Investment Decision:After a positive feedback obtained in the previous phases, all the results and ratings are compiled and analyzed so that an informed decision can be made;
iv. Due dilligence: The assumptions and information that were the basis for decision making are validated documentally and when necessary audited;
v. Investment follow-up: Insight Venture undertakes the commitment to monitor and control all its investments, mainly regarding the compliance with the pre-defined conditions with special emphasis on the potential risks identified.
Non consideration of the negative impacts of investment decisions on sustainability factors
Insight Venture does not meet the requirements set out in Article 4 (3) and (4) of the SFDR. Although Insight Venture monitors its investments with special attention to ESG factors, it does not consider negative impacts on sustainability factors in its investment decisions. The main reason is that the universe of companies normally invested in by Insight Venture are mostly small or medium size companies (SMEs) and they do not have the resources and facilities to adequately consider the impacts. As this is a constantly evolving issue, Insight Venture seeks to find solutions that are compatible with the reality of the investments. The information provided herein will be updated in case of changes.
Remuneration Policy
Insight Venture's current Remuneration Policy contemplates sustainable measures:
i. Balanced compensation systems between company Management and employees;
ii. Alignment between Management's compensation policy and the shareholders' medium-term strategic objectives;
iii.Themes such as gender equality, age or other related issues are internalized as an integral part of current concerns.
Concerned with sustainability risk in remuneration, Inisight Venture has opted for a fixed remuneration system, and it is expected that in the short term it will complement this with a variable, transversal remuneration system which takes into consideration the appetite for risk and the values and long-term interests of the Firm. Thus, 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 regarding variable remuneration will be distinct from fixed remuneration, which includes payments, proportional and regular contributions for 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 are part of customary employment packages (such as healthcare, or proportionate and regular pension contributions). Both pecuniary and non-pecuniary benefits should be included in variable pay.
The Board periodically reviews the company's compensation policy, adjusting fixed remuneration, other benefits and perks, and variable remuneration to ensure its sustainability.
As the remuneration policy is a key issue for Insight Venture, there is a constant concern in its re-evaluation and adaptation to the best practices in order to incorporate other sustainability risks.
Last update: 03/04/2023
