Responsible investing

Taiga Fund adheres to a philosophy of Responsible Investing primarily to protect and enhance risk adjusted returns for investors in the fund. Our Responsible Investing framework is a tool that systematically captures our risk and exposure in a bottom-up investment process through three partially overlapping assessments:

• Sustainability: a company’s ability to mitigate and overcome internal and external risk factors from an economic, environmental and social perspective.

• Ethics: the objective and subjective evaluation of activity, conduct and consequences from a moral and reputational perspective.

• Engagement: the ability and opportunity to influence company decision-making and outcomes.

In practice, the framework directs our investment decision process in the following ways:

Sustainability
When evaluating and analysing both new and existing investments Taiga Fund will conduct bottom-up risk assessments, including ESG analyses, as an integral part of our processes. Sustainable business models and value propositions are key criteria in the evaluations. Profitability and a company’s ability to invest in its operations to uphold or improve its sustainability is vital in this respect. We require and promote transparent and meaningful reporting, including SFDR and Taxonomy disclosure. For further detail on Taiga Fund’s approach to Sustainability please see our Sustainability Statement.

Ethics
Taiga Fund will avoid companies with disreputable dominant owners based on historic conduct and business practices. Management integrity and trustworthy communication are also key considerations. We furthermore exclude long investments in businesses that challenge legal or regulatory standards or do harm to customers. These include companies that we have reason to believe could be violating national or international laws or human rights, companies whose activities cause serious environmental damage, companies involved with controversial weapons or companies engaged in corruption. We specifically do not invest in predatory consumer lending, gambling, tobacco or cannabis companies.

Engagement
Taiga Fund seeks to engage in an active dialogue with the management, the Board of Directors and other stakeholders. We participate and vote in all Shareholder General Meetings. Furthermore, we monitor and promote management incentives schemes for alignment with shareholders’ interests and company strategy, including Sustainability. When required we seek to effect change, including through participation at the Nomination Committee level.

Taiga Fund only invests in companies that satisfy minimum criteria under all three partially overlapping dimensions, while acknowledging that all risks cannot be eliminated and are subject to changes based on scientific and social developments. We will continue to refine our approach and incorporate additional detail and data into our analyses as it becomes more available, objective and reliable. Finally, Taiga Fund supports the development of objective rules and standards that promote transparency on the dimensions our Responsible Investing philosophy is based on.

For complete disclosure and information please see the following documents:

Taiga Fund Sustainability Statement:
210309 – Taiga Fund Sustainability Statement

Policy on the Consideration of Adverse Impacts of Investment Decisions on Sustainability Factors:
210927 – Taiga Fund Article 4 Statement

Statement on How the Remuneration Policy is Consistent with the Integration of Sustainability Risk:
210309 – Taiga Fund Article 5 Statement