SFDR

Arkwright X SFDR disclosure

Article 3 - Integration of Sustainability Risk

At Arkwright X, sustainability risk assessment is integral to our due diligence process. We include impact evaluations in our investment documentation, utilizing both qualitative and quantitative analyses, including interviews with management and industry experts, and thorough assessments of products, technology, and value chains. We evaluate potential investments based on their impact creation and associated risks, refraining from investing in cases with high sustainability risk. We refrain from investing in companies involved in human right violations, significant environmental degradation, corruption or financial crime, and avoid industries inherently exposed to sustainability risk, such as coal, oil, tobacco, weapons, gambling, and pornography. We monitor our portfolio’s impact risk throughout the holding period and encourage our portfolio companies to avoid significant sustainability risks through active ownership.

Article 4 - Consideration of Adverse Sustainability Impact

Arkwright X currently does not consider principal adverse impacts (PAIs) as defined by SFDR in our investment decisions. We focus on small, early-stage companies that lack sufficient resources to gather and verify the necessary data for SFDR compliance. The data collection, quality assurance, and reporting requirements are currently not considered proportionate to the anticipated risks. However, we remain vigilant regarding the potential adverse impacts of our investments and are confident that these impacts are not material.

Article 5 - Remuneration Policy

Arkwright X’s remuneration policy promotes sound and effective risk management, ensuring that compensation structures do not encourage excessive risk-taking related to sustainability risks. It incentivizes decision-makers to adhere to the defined investment strategy of Arkwright X, integrating sustainability risks into the overall risk assessment of investment decisions.