Information on sustainability of Széchenyi Alapos Zrt. (hereinafter referred to as the “Company”) pursuant to Regulation (EU) 2019/2088 of the European Parliament and of the Council on sustainability-related disclosures in the financial services sector (hereinafter referred to as “SFDR” or “Regulation”)

The Regulation marks a milestone for EU legislation on ESG (social responsibility and environmental awareness). In this context, SFDR requires the disclosure of specific information to financial market participants, including alternative investment fund managers, on the approach to integrating sustainability risks and taking into account the adverse effects of sustainability. In order to fulfil the obligations set out in the Regulation, the Company publishes the following information.

In line with the spirit of the Regulation, the Company supports all initiatives aimed at strengthening environmental protection and sustainable investment, including environmental, social and workers' issues, as well as respect for human rights.

The Company is committed to fulfilling the objectives of the Regulation, in order to take into account their adverse effects on sustainability factors in accordance with Article 4 (1) (a) of the Regulation in its investment decisions.

When selecting projects, the Company takes into account and examines the size of the target company, the nature of its activities and the magnitude of the respective target company, which may have an impact on sustainability factors. In its investment decisions, it also takes into account environmental, social and corporate governance (ESG) factors, while aiming to promote local consumption through investments, thereby reducing the ecological footprint resulting from the use of products and services. The way sustainability risks are taken into account depends on the nature of the portfolio and the investment policy of the portfolio.

The Company refrains from investing in companies whose activities are considered harmful according to international standards, so not only economic and financial criteria but also moral considerations prevail in decision-making.

During its monitoring activities, the Company continuously monitors the operation of the portfolio companies involved with its investments, participates in the decision-making of the main organ, during which it monitors the sustainability commitment of the companies concerned, and strives to enforce sustainability aspects in decision-making.

Further steps taken by the Company to take into account and manage sustainability risks:

the introduction of separate waste collection in the office area to reduce environmental risks associated with emissions of waste and other pollutants;
in order to comply with social and ethical principles, the Company excludes from its potential investments companies that may be associated with child labor, pornography, gambling, arms trafficking, and entering into speculative transactions;
it shall not support investment in undertakings for the processing or use of palm oil in order to prevent the destruction of primeval forests.
The Company incorporates the principles of SFDR into its decision-making processes and develops the relevant internal regulations in order to comply with the Regulation.

In addition to the above, the Blue Planet Climate Protection Venture Capital Fund, managed by the Company, plays a significant role in enforcing the objectives of the Regulation and the ESG, which aims to provide funds for competitive enterprises committed to environmental protection, sustainable development, environmentally friendly water management and especially climate protection, in this context the Company actively seeks and prioritizes investments in sustainability and climate protection.