Remuneration Policies and Sustainability Risks
The information below regarding how the remuneration policies of IK Investment Partners AIFM (together with IK Investment Partners Limited and their principal group companies, “IK”) are consistent with the integration of “sustainability risks” in its investment decision-making process is provided in accordance with Article 5(1) of the EU Sustainable Finance Disclosure Regulation (Regulation (EU) 2019/2088) (“SFDR”).
IK maintains a Remuneration Strategy Policy (“Remuneration Policy”), which sets out the general principles that underpin IK’s strategy, procedures and decision-making processes for the payment of variable remuneration to its personnel.
IK personnel are subject to two annual performance reviews, which inform IK’s decision as to whether variable remuneration will be paid to such personnel and the extent of such remuneration. Environmental, social and governance (ESG) risk management is considered as part of each relevant individual’s performance review, including the individual’s adherence to IK’s ESG policy, which details IK’s consideration of sustainability risks in its decision-making process, as well as IK’s monitoring and oversight of portfolio companies in relation to the management and mitigation of ESG risks and the realisation of ESG-related opportunities. This forms part of IK’s effective monitoring and reporting to ensure that excessive risk taking, including in relation to sustainability risks, is discouraged and prevented.
In addition, where an individual has made a significant effort or value-add contribution to the implementation of IK’s sustainability and ESG initiatives, a discretionary reward may be paid to that individual.