Responsibility and Sustainability

At Indico Capital Partners we are dedicated to driving positive change through our investment practices. As a leading venture capital firm, we acknowledge the critical importance of sustainability and responsible investment in fostering long-term value and creating a better world for future generations. We recognize, in our role as investors, the responsibility to contribute towards improving the financial sector’s sustainable practices. Our commitment to responsible investment is not just a mandate. We believe that environmental, social, and corporate governance (ESG) issues can affect the performance of investment portfolios, and it is our fiduciary duty to manage these risks in order to generate sustainable long-term returns to our limited partners, while contributing to social cohesion and environmental sustainability.

Indico Capital Partner’s commitment to invest responsibly and embedding our funds with high-standards of sustainable investment practices is ensured by our sustainability policies and its ESG investment management framework, with ESG criteria integration at each stage of the investment cycle, implemented by investment officers and with senior management oversight. We are proud to be subscribers and members of several key global sustainability initiatives that underscore our commitment to responsible investment, such as the UN Principles for Responsible Investment (UNPRI), the UNEP FI Sustainable Blue Economy Finance Initiative (SBE) 14 Principles for Sustainable Ocean Finance, and currently in the process of becoming subscribers to the United Nations Global Compact*. As such, Indico Capital Partners continuously actively manages the environmental or social characteristics of its Funds, championing sustainability, and fostering a resilient future for all.

From 10th March 2021, a new regulation on sustainability-related disclosures in the financial services sector - The Sustainable Finance Disclosure Regulation (SFDR) - applies to all EU market participants, including venture capital funds. Indico Capital Partners - Sociedade de Capital de Risco, S.A. (“Indico Capital Partners”) is a Capital Management Company governed by Portuguese law. The information we publish on our website is in accordance with this SFDR Regulation (EU 2019/2088). Unless information is explicitly provided in relation to a specific fund managed by Indico Capital Partner, the following statements refer to Indico’s management and investment decision-making processes in general.

Signatory of:

Indico Sustainability Policies

ENVIRONMENTAL, SOCIAL & GOVERNANCE POLICY
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Sustainability has been at the core of Indico Capital Partners since its inception. Indico first started its investments in tech startups - Web3, Artificial Intelligence (AI), big data, enterprise SaaS, fintech and marketplaces, among others - and most recently in ocean related startups and SMEs - digitalization, innovative hardware and novel sustainable ocean solutions - with the aim of giving them scale and enabling their global expansion and positive impact in terms of climate action. It is our conviction that helping grow a portfolio of profitable sustainable businesses can help shape a more socially cohesive and environmentally sustainable world.

Indico Capital Partner's ESG policy - June 30th, 2024

REMUNERATION POLICY
‍Remuneration and integration of sustainability risks (SFDR - Article 5)
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‍Indico Capital Partners recognizes the importance of its remuneration policy in aligning interests and ensuring fair and equitable compensation that attracts, retains, and motivates team members. To this end, sustainability criteria are incorporated when evaluating and selecting candidates for Indico’s team and our remuneration policy adheres to the principle of equal pay for equal work or work of equal value, ensuring it is non-discriminatory and promotes balance, efficiency, and diversity within Indico's team.

Notwithstanding, given the current circumstances, particularly the nature of the companies targeted by the financial instruments managed by Indico Capital Partners (i.e., early-stage start-ups), we acknowledge that we are presently unable to independently integrate sustainability risks into our remuneration policy. Should these circumstances change, we will reassess the feasibility of incorporating sustainability risks into Indico’s remuneration policy. Any such changes will be promptly reflected in updated information provided herein.

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ESG INVESTMENT FRAMEWORK
‍Integration of Sustainability Risks (SFDR - Article 3)

Indico Capital Partners ensures responsible investment practices across its entire investment fund offering through its Environment, Social and Governance and Impact Management System (ESGI-MS). Indico’s ingrained belief about the importance of sustainability across its activity is reflected in the ESGI-MS’s integration of key responsible investment guiding principles, linked to Indico’s several formal commitments with the global reference responsible investment and sustainability initiatives such the United Nations Principles for Responsible Investment (UNPRI), the United Nations Environmental Program Financial Initiative (UNEP FI) Sustainable Blue Economy Financing Principles (SBE FP), and the United Nations Global Compact*.

Indico Capital Partner's ESG Investment Management System - November 29th, 2024

Consideration of Principal Adverse Impacts

No consideration of principal adverse sustainability impacts (SFDR - Article 4)

Indico Capital Partners does not consider adverse impacts of investment decisions on sustainability factors as recommended by the Commission Delegated Regulation (EU) 2022/1288 of 6 April 2022.
Indico Capital Partners recognizes the importance of the Principal Adverse Impacts of investment decisions on sustainability factors. We are developing internal frameworks to identify, evaluate, and prevent principal adverse impacts on ESG criteria, the assessment of ESG related risks and opportunities, the collection, quantification and reporting data as an integral part of Indico’s investment strategy.
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Annual Statement on Adverse Impacts of Investment Decisions on Sustainability Factors 2024 - March 03, 2024

Indico Investment Funds

SFDR Product Categorization (SFDR - article 10)
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Indico’s Funds pursue a venture capital strategy and focus on investments in startups that develop transformative technologies to fundamentally change our lives by solving significant problems. Investees are predominantly startups at their early-stages of development, which are not under the obligation to, and do not have reasonable capacity, make available structured ESG information. However, Indico strives to work together with its investees to ensure adequate ESG risk management and proactive engagement on developing the necessary practices and systems towards building ESG aligned business. All of Indico’s Funds have environmental, social and governance risks integrated in their investment management. Some Fund offering promotes environmental or social characteristics but do not have as their objective sustainable investments. As such, and in accordance with SFDR Product Categorization, Indico’s Funds qualify for either Article 6 or Article 8 financial products, as follows:

INDICO SFDR Article 6 Funds
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An Article 6 fund under SFDR is a financial product that integrates sustainability risks into its investment decisions but does not specifically promote ESG characteristics or pursue sustainable investments.
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     - INDICO VC FUND I;
     - INDICO ACCELERATION FUND;
     - INDICO OPPORTUNITY FUND;
     - INDICO R&D & CO-INVESTMENTS VC FUND II;
     - INDICO VC FUND II - EuVECA.


INDICO SFDR Article 8 Funds

SFDR Article 8 requires financial products that promote environmental or social characteristics to disclose how these characteristics are met. An Article 8 fund promotes ESG factors but does not necessarily have sustainable investment as its main objective.
     - INDICO BLUE FUND.

* Indico Capital Partners is currently on the membership process for the UN Global Compact
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