Wellstreet has developed a unique framework to support our portfolio companies. We are sharing and explaining that framework together with our models, tools and best practices to the startup and VC community here: Wellstreet ESG Framework
This disclosure is made in accordance with the EU Sustainable Finance Disclosure Regulation (the “SFDR”). Wellstreet’s Fintech Fund I promotes, among other characteristics, environmental and social characteristics, in accordance with article 8 of the SFDR. Those characteristics are met since the fund invests in companies that have a net positive impact in environmental, social and corporate governance aspects throughout their value-chain, by doing this we drive development step by step in the right direction. The fund takes into account principal adverse impacts on sustainability factors.
Potential sustainability risks and potential positive and negative impact on sustainability factors are screened as a part of the initial due diligence before investing in a portfolio company. Sustainability risks and sustainability factors are also monitored during the investment period together with other material risks and aspects in order to assess risks and possibilities and incorporate necessary actions. This is done by continuously collecting data from portfolio companies and when necessary, holding workshops with portfolio companies to increase awareness.
Wellstreet will at all times act as a responsible owner. Wellstreet considers the due diligence guidance for responsible business conduct developed by the Organisation for Economic Cooperation and Development (OECD) and the United Nations supported Principles for Responsible Investment. Wellstreet will act in a manner to influence the portfolio companies in material aspects relating to sustainability through the board of directors and/or through the shareholders’ meeting. Wellstreet is of the firm opinion that a focus on sustainability is the best way to increase resilience in any business and thereby the best way to generate a high profit to investors.
The companies Wellstreet invest in are mainly early-stage tech companies hence the low negative impact on climate and environment. We have medium low impact on social and employee matters, mainly gender balance. This is identified to be due to the fintech environment having a significantly higher proportion of men than women. We have the ambition to balance the gender proportion on a board level.
Low impact < 18 MSEK
Medium low impact 18-35 MSEK
Medium high impact 35-53 MSEK
High Impact > 53 MSEK