A sustainability strategy is the first step to a profitable and sustainable transformation" At Nazca we firmly believe that a responsible investment contributes to the creation of value, and we therefore incorporate environmental, social and corporate governance (ESG) considerations into our investment strategy.
Annual Reports on Sustainability
At Nazca we have a clear climate change strategy, based on the following pillars:
- Channeling part of the funds we manage towards climate change mitigation opportunities
- Clear objective of decarbonization throughout our portfolio, having approved an emissions reduction plan and reviewing KPIs annually (both at management and portfolio level)
- Continuous professionalization of our climate risk management (physical and transitional)
We have a responsible investment policy that guides our actions throughout the various stages of the investment process and an ESG Committee in which our senior management participates and which ensures its implementation.
The binding elements of our investment strategy are aimed at improving the ESG performance of our portfolio companies.
These binding elements are:
- The performance by an external expert of a Due Diligence of the main ESG risks and opportunities of the companies in which we invest, as well as the main adverse impacts in the pre-investment phase. The Due Diligence includes recommendations to exploit the opportunities found and to mitigate and reduce the risks and negative impacts identified.
- The findings of the ESG Due Diligence, together with the action plan, are discussed in the Investment Committee before the investment decision is made.
- During the investment holding period, an action protocol is applied to improve the ESG performance of the companies in which we invest. This protocol includes:
- A medium/long-term ESG strategic plan prepared by an external expert with specific ESG objectives, which is periodically monitored by the Board of Directors.
- A set of ESG indicators (KPIs) that allow us to measure the evolution of the actions included in the strategic plan, the main adverse incidents and thus monitor the achievements in improving the ESG performance of each of our companies.
DOWNLOAD (Nazca's Responsible Investment Policy (ESG) (25.07.2023) v4)
Our sustainability commitments
and principles
SDGs
Nazca seeks to contribute positively to the UN Sustainable Development Goals (SDGs) through its activities, by mapping the specific contribution of each portfolio company. All SDGs are taken into account when making investment decisions, with the following being those in which we have the greatest positive impact:
UNPRI
Nazca is signatory to the United Nations Principles for Responsible Investment since 2016 and we are committed to its 6 principles.
TCFD
Nazca's responsible investment policy and practices are aligned with the recommendations of the Task Force on Climate-Related Financial Disclosures regarding climate-related risks. We incorporate their recommendations into our investment decisions and procedures.
ESG DCP
We joined the Data Convergence Project in 2022 in order to contribute to the creation of a stable framework for the measurement, comparability and transparency of KPIs that meets the needs of investors.
SFDR
All of our investment vehicles are registered as SFDR Article 8 and promote environmental or social characteristics.
SpainCap
We are members of SpainCap.
Disclosure Regulation (SFDR):
At Nazca we consider the material or potentially material principal adverse impact (PAIs) of our vehicles' investments on sustainability factors. These PAIs are identified during the Due Diligence phase and are actively managed throughout the investment period, defining and implementing actions that contribute to their reduction. Its evolution is measured through the annual calculation of 14+2 indicators listed in Table 1 of Annex I of the SFDR's Delegated Regulation 2022/1288 of April 6, Technical Development (RTS).
Fondo Nazca IV, F.C.R. promotes the environmental and/or social characteristics defined in Article 8 of EU Regulation 2019/2088 (SFDR).
More information on the environmental and/or social characteristics promoted by the Fund, including the binding elements of our investment strategy and the sustainability indicators used to measure the achievement of these characteristics, can be found here:
DOWNLOAD (Nazca Capital - Website Disclosures article 8 - Fondo Nazca IV, FCR (10.03.2023) #1)
Fondo Nazca Small Cap I, F.C.R. promotes the environmental and/or social characteristics defined in Article 8 of EU Regulation 2019/2088 (SFDR).
More information on the environmental and/or social characteristics promoted by the Fund, including the binding elements of our investment strategy and the sustainability indicators used to measure the achievement of these characteristics, can be found here:
Nazca Opportunity I, S.I.C.C., S.A. promotes the environmental and/or social characteristics defined in Article 8 of EU Regulation 2019/2088 (SFDR).
More information on the environmental and/or social characteristics promoted by the investment vehicle, including the binding elements of our investment strategy and the sustainability indicators used to measure the achievement of these characteristics, can be found here:
Fondo Nazca SC II, F.C.R. promotes the environmental and/or social characteristics defined in Article 8 of EU Regulation 2019/2088 (SFDR).
More information on the environmental and/or social characteristics promoted by the Fund, including the binding elements of our investment strategy and the sustainability indicators used to measure the achievement of these characteristics, can be found here:
DOWNLOAD (Nazca Capital - Website Disclosures article 8 - Fondo Nazca SC II, FCR (11.24.2023) #1)
Our ESG path
2016
- Creation of the ESG Committee
- Approval and implementation of Responsible Investment Policy
- UN PRI signatories
- Start of annual ESG training for employees and portfolio companies
2017
- Formal integration of ESG factors in investment processes
- ESG Due Diligences in opportunity analysis
- Instructing investees to implement Corporate Compliance Programs
2018
- First UN PRI report
- Rating “A | Direct – Private Equity” (UNPRI)
- Rating “B | Strategy & Governance” (UNPRI)
- Web disclosure of ESG information to investors
- Approval of the Volunteer Plan
- Approval and implementation of the Good Environmental Practices Guidelines
- Implementation of Corporate Compliance Program
2019
- Rating “A” (UNPRI)
- ESG Protocol aprroval
- Adherence to Level 20
- Hiring of external ESG experts
- Approval of Annual ESG Plans in portfolio companies
- Presentation at Invest Europe Summit
- Participation in ASCRI ESG Best Practices Guide
- Participation in the "Alliance for Global Growth”
2020
- Rating “A | A+ Strategy & Governance” (UNPRI)
- Inclusion of Nazca in Stafford and Aberdeen ESG Reports
- Approval of ESG monitoring tool
- Nazca finalist in the ASCRI ESG Awards
- Case presented to UNPRI awards
- Presentation at Amexcap
- Participation in the ASCRI ESG Best Practices Guide
- Participation in the "Alliance for Global Growth”
- TCFD participants
- ESG Policy web publication
- ESG awards to portfolio companies: Terratest, Cinelux, Herbex
2021
- Adaptation to SFDR standards
- Update of KPIs based on SFDR and ILPA and others selected based on financial materiality (SASB)
- Approval of TCFD Roadmap
- Carbon footprint measurement project in 100% of portfolio companies
- ESG awards to portfolio companies: Filmin, OneShot, Diater
2022
- Registration of investment vehicles as Article 8 products
- Approval of a climate strategy
- Preparation of the first TCFD Report
- Approval of long term ESG Strategic Plans in portfolio companies prepared by external experts
- Alignment of management team
- Eligibility analysis of portfolio companies according to EU taxonomy
- Adherence to the Data Convergence Project
- Nomination for Best ESG Family Business Investment Strategy by Capital Finance International
- Filmin achieves carbon neutrality
- Scope 3 emissions calculation at portfolio level
- Reassessment of Taxonomy eligibility of our portfolio companies
- CSRD scoping and readiness assessment of our investees
- SFDR PAIs disclosure
- UN PRI score: 5/5 in the Private Equity category and 4/5 in both Policy, Governance & Strategy and Confidence building measures
- Average progress of >80% in the application of ESG Action Plan’s initiatives at portfolio level
- “ESG Advantage” platform used for portfolio data gathering
Our ESG results
*PCs : Portfolio Companies
100% PCs
have approved Long term ESG Strategic Plan
60% PCs
have diversity and inclusion plans
33% PCs
taxonomy elegible
10.076
jobs created in 2023
87% PCs
Calulate Scope 3 emissions
93% PCs
Have emissions reduction plans
100% PCs
measure KPIs
