Oquendo’s investment process fits within a strict socially responsible investment policy that takes into account sustainability and ethical impact of the businesses of invested companies.
Since 2008, Oquendo Capital SGEIC, S.A. (“Oquendo”) is a signatory of the United Nations PRI (Principles for Responsible Investment) and its funds are committed to the Six Principles of the UN Global Compact.
Aware of the importance of climate change, Oquendo is committed to align its activity with Paris Agreement. During 2020 Oquendo committed to TFCD (Task Force on Climate-related Financial Disclosures) and, therefore, to implement its recommendations in climate matters. Oquendo has developed its own Climate Strategy which shows the objectives regarding these matters for coming years.
In this context, Oquendo integrates sustainability risks into the investment decisions of most of funds that manages. In particular, Oquendo Senior Debt Fund II ELTIF S.C.A. SICAV-RAIF, Oquendo Senior Debt Fund II S.C.A. SICAV-RAIF, Oquendo IV ELTIF S.C.A. SICAV-RAIF and Oquendo IV S.C.A. SICAV-RAIF (the “Funds”) promote environmental and social characteristics through their investments and therefore are defined as sustainable products according to article 8 of SFDR(Sustainable Financial Disclosure Regulation).
In 2022 Oquendo was certified as B Corp company thanks to its compliance with the highest standards in terms of social and environmental performance, transparency and corporate responsibility
Oquendo applies the following investment decision process principles:
- Compliance with applicable regulation
- Respect for human rights
- Respect for labour conditions
- Respect for the environment, and
- Compliance with local and regional corporate governance
In general, the objective of the Funds is to invest in loans, securities andinstruments of any kind and other permitted assets of companies that comply with the following KPIs:
(i) Environmental: Energy efficiency, sustainability policy, low level of Co2 emission, no waste, analyse ESG aspects taken into account, recycling, sensibilization, and environmental certificates.
(ii) Social: Low staff turnover, training and qualification, low number of working hours, high number of women employed, equality plan, policies of work/life balances, measurement of work environment, volunteering and donations, and health & safety.
(iii) Governance: High turnover of the year, high number of women in the board of manager, no anti-competitive behaviour, no corruption, compliance model, no residence in fiscal paradise. Oquendo maintains a responsible investment policy that is updated periodically since 2016, and which applies to all the managed funds, including the Funds.
To see the latest version, click here.
Oquendo bases its investment decisions on its own analysis. Indeed, no index has been designated as a reference benchmark for the purpose of attaining the environmental and social characteristics promoted by Oquendo.
However, Oquendo has implemented a specific investment protocol in order to integrate ESG criteria and its governing principles to its investment decision process and ownership practices.
The main methods used to evaluate, measure and control the environmental and social characteristics of the investments of the Funds, and their impact, are:
- Negative screening: Oquendo has a negative screening procedure to discard potential transactions that are considered as negative screening.
- Investment protocol: Oquendo has implemented a specific investment protocol in order to integrate ESG criteria and its governing principles to its investment decision process and ownership practices.
All phases, including fund raising, assessment of the potential target companies, execution of the project finance and monitoring of the portfolio companies, are covered by such protocol.
Oquendo aims to ensure that the conduct of its portfolio companies are law-abiding and proportionated, maintaining business integrity and being compliant with relevant international standards, conventions and agreements on business integrity, anti-corruption and anti-bribery.
Every year, Oquendo publishes an ESG memory which summarizes the evolution of the different ESG dimensions Oquendo follows in its responsible investing. Please contact our ESG team (email@example.com) for a copy of the latest report.
The Funds have so far invested approximately [seventy million euros] in companies that meet the aforementioned environmental and social characteristics.
Oquendo is a member of ASCRI (Asociación Española de Capital Riesgo) and follows the industry recommendations issued by ASCRI and EVCA (European Venture Capital Association).