In accordance with Regulation (EU) 2019/2088 of the European Parliament and of the Council on Sustainability-Related Disclosures in the Financial Services Sector ("SFDR"), Castik Capital S.à.r.l. (“Castik Capital”) makes the following disclosures in accordance with Articles 3(1), 4(1)(b), 5(1) and 10 of the Disclosure Regulation.
Sustainability risk policies
For the purposes of SFDR, a sustainability risk is defined in Article 2(22) as "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”.
Castik Capital believes the integration of sustainability risk considerations into our investment process is an important component of sound risk management and long-term value creation.
Sustainability risks we consider
Sustainability risks are assessed qualitatively and, where data permits, quantitatively. They include, but are not limited to:
- Environmental: Climate change risks including physical and transition risks arising from the transition to a low-carbon economy, energy consumption and intensity, and water and waste management.
- Social: Employee health, safety and wellbeing, labour standards and human rights, employee engagement and diversity, equity and inclusion (DEI), community and stakeholder relations, product and customer safety.
- Governance: Anti-bribery and anti-corruption, data security and privacy, business integrity and ethics, tax compliance and executive remuneration alignment.
Integration into our investment process
- Screening: All potential investments are subject to an initial ESG screen to identify material sustainability risks and excluded activities prior to formal due diligence. Castik Capital does not invest in companies operating in sectors which are part of our exclusion policy.
- Due Diligence: ESG due diligence is conducted for each proposed investment and presented to the Investment Committee.
- Investment decision: The Investment Committee reviews material sustainability risks and related mitigations alongside financial and other factors before approving any investment.
- Ownership: Sustainability risks and ESG performance are monitored throughout the ownership period via annual ESG reviews and portfolio company engagement.
- Exit: Prior to or in preparation for exit, Castik Capital seeks to ensure material ESG matters are appropriately documented and disclosed, as part of the exit process.
Principal adverse sustainability impacts
Castik Capital considers the principal adverse impacts ("PAIs") of its investment decisions on sustainability factors. The PAI statement covers the reference period from 1 January 2024 to 31 December 2024 and is available to download here:
It describes:
- The principal adverse impacts across Castik Capital’s investment portfolio;
- The policies and actions taken or planned to address those impacts;
- The data sources, methodologies and limitations used; and
- Measures to reduce adverse impacts.
Remuneration policy
The remuneration policy of Castik Capital is consistent with the integration of sustainability risks into our investment decision-making process, in accordance with Article 5 of SFDR.
Castik Capital’s remuneration policy promotes sound and effective risk management and discourages risk-taking that is inconsistent with the risk profiles, investment objectives, and governing documents of the Funds that Castik Capital manages, including risks arising from environmental, social, and governance factors.
Castik Capital pays its staff a combination of fixed remuneration (salary and benefits) and variable remuneration (including bonus). Variable remuneration for relevant staff takes into account compliance with all of the company’s policies and procedures as well as with the company’s internal risk management framework and risk limits, including those relating to the integration of sustainability risks.
The full policy is available to investors upon request.
Fund-level disclosures (Article 8)
