Principal Adverse Impacts
At Fondita, we consider the investment decisions’ principal adverse impacts (PAI). Before investing, we evaluated the ESG risks associated with the company which includes the mandatory PAI-indicators and two voluntary PAI-indicators. If we perceive the risk to be higher, it affects our potential investment decision. We avoid companies where the risks of principle adverse sustainability impacts are, in our judgment, high and likely to cause damage to the company, as an example reputational or decrease in stock value. The PAI evaluation is completed by screening the PAI parameters in MSCI. As reporting requirements such as CSRD have are being implemented we expect to see a better coverage of all indicators in the relevant ESG databases.
We monitor the principal adverse sustainability impacts throughout the time we own a holding. Our latest consolidated company level PAI report is available here.
We strive to form a holistic picture with the data we have available in our third party databases, conduct the assessment based on regulation and internal guidelines and thereby minimizing the PAI related negative consequences in our investments.
Fondita