Regulation (EU) 2019/2088 of 27 November 2019 on sustainability‐related disclosures in the financial services sector as amended ("SFDR")
The SFDR forms part of the European Commission's action plan on sustainable finance and imposes new transparency obligations and periodic reporting requirements on financial market participants (including authorised and registered alternative investment fund managers ("AIFMs")) at both product and entity level.
As a financial market participant, IP Lab GP S.à r.l. (the "General Partner"), as general partner and registered alternative investment fund manager of IP Lab Ventures Fund I SCSp (the "Partnership") makes the following disclosure in accordance with SFDR.
The investments underlying the Partnership do not take into account the EU criteria for environmentally sustainable economic activities. The Partnership is a financial product falling within Article 6 SFDR.
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 an investment.
Those sustainability risks are not currently considered by the General Partner in its investment decision-making processes and due diligence procedures, as the General Partner believes that they are not material to the investment decision-making process considering the nature and the size of the Partnership's investments. The General Partner's prior assessment shows that the likely impact of sustainability risks on the Partnership is low.
In accordance with Article 4(1) of the SFDR, the General Partner is required to make a "comply or explain" decision as to whether it considers the principal adverse impacts ("PAIs") of its investment decisions on sustainability factors.
In this respect, the General Partner does not currently consider any adverse impacts of its investment decisions on sustainability factors. The General Partner lacks the necessary resources and sufficiently reliable, complete and comparable data to comply with the requirements of the PAI regime, considering the nature and size of the Partnership's investments, which consist of seed and early-stage financing rounds in early-stage, deep-technology start-ups originating primarily through technology transfer activities in the Czech Republic and the broader Central and Eastern European region.
Therefore, while supportive of the policy aims of the PAI regime, the General Partner does not currently intend to consider such adverse impacts and has not set a specific date for doing so. This decision will be kept under review having regard to the indicators set out in Annex I to Commission Delegated Regulation (EU) 2022/1288 and to the availability and quality of the relevant data.
The General Partner's remuneration policy is consistent with its approach to the integration of sustainability risks and does not encourage excessive risk-taking that would be inconsistent with the risk profile, investment strategy or constitutional documents of the Partnership.
The General Partner is remunerated by means of a management fee payable by the Partnership, calculated by reference to each limited partner's capital commitment during the investment period and, thereafter, reduced annually, subject to a cap on aggregate management fees over the life of the Partnership. A carried interest is allocated to the carried interest partner designated by the General Partner. The foregoing is further described in the Partnership's limited partnership agreement. This remuneration structure does not encourage excessive risk-taking that would be inconsistent with the sustainability risk profile of the Partnership's investments.