Sustainability

Management Company’s Overall Sustainability Policy

Eika Asset Management (hereinafter “EAM”), as part of the Eika Group, follows the Group’s sustainability strategy, which emphasizes accountability for environmental, social, and community impacts. In line with these principles, EAM ensures that its investment management processes contribute to environmental protection, social well-being, and adherence to high governance standards.

EAM focuses on reducing environmental impact throughout the investment life cycle and fostering strong relationships with clients and partners. Each managed project is expected to create added value for customers and communities while maintaining transparency, responsibility, and alignment with sustainability principles.

Integration of Sustainability Risks into Investment Decisions

In accordance with Regulation (EU) 2019/2088 of the European Parliament and of the Council (SFDR), EAM integrates sustainability risk assessments into its investment decision-making processes to promote long-term investment stability.

All EAM-managed funds fall under Article 6 of the SFDR. Accordingly, sustainability risks are assessed in line with each fund’s investment strategy, with primary emphasis on financial performance.

The sustainability risk assessment process includes:

  • Investment Environment Analysis: Evaluation of how environmental, social, and governance (ESG) factors may impact the sectors in which investments are made—e.g., climate change, technological shifts, or evolving social standards.

  • Use of Quantitative and Qualitative Data: EAM employs third-party data, ESG ratings, and internal methodologies to identify material sustainability risks that could affect investment returns.

  • Proportionate Decision-Making: Where risks are identified as material, EAM adjusts portfolio structure or asset selection to mitigate potential negative impacts.

Priority Areas in Sustainability Risk Integration

  • Climate Risks: EAM assesses the exposure of investments to physical and transition risks from climate change—e.g., extreme weather (floods, storms), long-term shifts (temperature increases), or evolving regulatory standards (energy efficiency, emissions reduction). These factors may influence both asset values and operational costs.

  • Social Factors: Investments are evaluated for compliance with labour law, human rights, diversity, and fair working conditions. EAM also assesses how companies manage their impact on surrounding communities.

  • Governance Quality: EAM reviews governance practices, with attention to transparency, ethics, and board competence in addressing ESG challenges. The ability to adapt to environmental and social change is key to ensuring long-term resilience.

This approach not only protects investor capital from ESG-related risks but also reinforces responsible investment practices, in compliance with SFDR requirements.

Statement on Principal Adverse Impacts (PAI)

In accordance with Regulation (EU) 2019/2088, EAM hereby discloses that it does not currently consider principal adverse impacts (PAI) on sustainability factors.

This position reflects the fact that none of the funds under EAM management promote environmental or social characteristics, nor do they pursue sustainable investment objectives. As such, EAM does not collect the data necessary to perform PAI assessments. All funds fall under SFDR Article 6.

EAM continuously monitors regulatory developments and market practices. Should data availability or regulatory expectations change, the approach to PAI may be reassessed. This position is reviewed annually.

Remuneration Policy

EAM’s remuneration policy is aligned with Regulation (EU) 2019/2088 and supports responsible, sustainability-conscious investment practices.

The policy incentivizes employees to consider long-term value creation, including the integration of sustainability risks, and to avoid excessive risk-taking. Although EAM-managed funds do not fall under SFDR Articles 8 or 9, the policy ensures that investment-related staff operate with a focus on transparency, risk discipline, and long-term sustainability.

These principles apply to all employees involved in investment decisions.

Last Updated: 2024-12-20

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