Sound Bioventures – SFDR Statement
Sound Bioventures aims to build a sustainable venture capital fund structure that invests in clinical-stage lifesaving and life-altering therapies with the potential to enable quality of life, and realize health-economic and patient survival benefits. Sound is committed to providing a high financial return on investment for our stakeholders and professional support to our portfolio companies while realizing our ESG approach for internal processes as well as support and guidance of portfolio companies. We adopt a proactive approach to ESG issues within our investment and portfolio management processes, prioritizing the interests of all stakeholders associated with Sound Bioventures’ funds. This includes our investors, portfolio companies, and the sectors in which they operate. By actively promoting ESG issues and striving for enhanced ESG performance among our portfolio companies, we aim to provide them with a competitive advantage while increasing their societal value.
With the introduction of the Sustainable Finance Disclosure Regulation (SFDR) in March 2021, financial market participants are required to disclose information about their sustainability considerations. Through this statement, Sound Bioventures provides information about its efforts and ambitions, considering sustainability risks and adverse sustainability impacts.
Sustainability risks
A sustainability risk means “an environmental, social or governance event or condition that, if it occurs, could cause an actual or potential material negative impact on the value of the investment”.
Before any new investment, various sustainability risks are assessed as part of the general risk assessment. Each risk’s potential impact or consequence is reviewed, and mitigation measures are identified. Based on the insights from this risk assessment, close collaboration with our portfolio companies is established to address any identified sustainability risks. This entails regular engagement with our portfolio companies to create appropriate mitigation plans and formulating a commitment from the investee to implement suitable measures within the company’s scope and a reasonable timeframe.
The investment committee is responsible for assessing the sustainability risks alongside other relevant factors set out in an investment proposal. Following its assessment, the committee decides on the investment considering all of the assessments.
Remuneration policy
Our compensation policy is to have a competitive and fair approach to remuneration for all employees. Compensation is dependent on various factors such as job profile, experience and personal development. It incorporates both fixed remuneration in terms of salary and variable remuneration in terms of bonuses. The variable component is determined by yearly achievements against performance criteria encompassing financial returns, ESG and the management of sustainability risks. We periodically evaluate and ensure that our remuneration policy remains in line with the market and that the balance between the fixed and variable components of remuneration shall be reasonable and not encourage excessive risk-taking.
Sound Bioventures will proactively engage with portfolio companies to promote competitive and fair remuneration, in some cases, this will entail taking a seat at the remuneration committee of the board of directors.
No consideration of adverse sustainability impacts
Sound Bioventures declares that it currently does not consider adverse impacts of investment decisions on sustainability factors at the entity level as outlined in article 4 sub 1 (a) of the SFDR and therefore does not make the disclosures as described in this article.
Due to the size and early-stage nature of Sound’s investments, not all portfolio companies are capable of reporting on their adverse impact due to the unavailability of data. Consequently, we cannot ensure the required completeness and quality of information to fully meet the technical standards outlined in Article 4 of the SFDR.
We will reevaluate yearly our disclosure practices regarding the adverse impacts of our investment decisions on sustainability factors at the entity level once the data quality and availability reach the required level for full compliance.
SFDR Article 8-fund periodic disclosure for 2022
The periodic disclosure for Sound Bioventures Fund I, 2022, can be received upon request. Please e-mail info@soundbioventures.com
More info: Sustainability-related disclosures fund I