Introduction to Signature & the SFDR

Signature Agri Investments (hereafter ‘Signature Agri’ or ‘company’) is a fund management company specialized in investing in agricultural assets on behalf of institutional investor clients. Signature Agri is headquartered in the Netherlands. The company currently manages eight large scale commercial farming entities across three fund mandates. It is Signature’s understanding that the requirements of the SFDR apply at Financial Market Participant level in respect of the ‘PCC Fund’ entity-level but not in respect of the ‘Ulimi’ and ‘Transnet’ fund mandates, and further that these funds are all classifiable as ‘Article 8 funds’. The disclosures below have been prepared according to this understanding. 

 

Signature Agri is at the stage of raising funds for the new Regenerative Capital Fund (hereafter ‘ReCa Fund’ or ‘fund’). The ReCa Fund is an open-ended private equity fund which aims to close the existing financing gap and promote climate-friendly and socially inclusive agriculture with a strong focus on biodiversity and natural capital. By making technologically advanced and nature-based investments across Sub-Saharan Africa, the ReCa Fund seeks tocontribute to climate change mitigation and adaptation, promote ecosystem health, improve livelihoods with a focus on vulnerable communities and minorities, and increase food security.

 

The ReCa Fund will operate under a European Venture Capital Fund (EuVECA) license. It is Signature Agri’s understanding that the requirements of the Sustainable Finance Disclosures Regulation (SFDR) will apply in full to the ReCa Fund and that compliance with these requirements is legally required. This statement serves to express Signature Agri’s commitment to meet the SFDR requirements and its intention to position the ReCa Fund as an impact-focused Article 9 fund.

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Future SFDR Requirements

Signature Agri is committed to implementing the entity-level requirements at fund manager level, and the product-level requirements for the ReCa Fund, including all required website disclosures, pre-contractual disclosures and disclosure of information in periodic reports. Given the highly technical and (legally) complex nature of SFDR, SIGNATURE Agri will seek specialized advisors to support in developing the required SFDR disclosures. This will include any (potential) Limited Partner (LP) preferences or requirements related to SFDR.

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SFDR Article 10 Disclosure – Applicable to all (PCC, Ulimi and Transnet) Funds​

1. Summary

These financial products are identified as Article 8 Funds. They promotes environmental and/or social characteristics through investments in sustainable

agriculture projects across Africa. They do not have a sustainable investment objective as defined in Article 9 of the SFDR, nor do they use a reference

benchmark to attain the promoted characteristics.

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3. Environmental or Social Characteristics Promoted

• Enhancement of soil health and biodiversity through regenerative agricultural practices.

• Improved water use efficiency and irrigation management.

• Promotion of decent work and community development in rural farming regions.

• Avoidance of deforestation and land degradation.

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4. Investment Strategy

The strategy integrates ESG criteria into the due diligence and monitoring processes, including:

• Negative screening for activities such as large-scale deforestation, harmful pesticides, and land grabs.

• Promotion of climate-smart agriculture, smallholder inclusion, and sustainable input use.

• Assessment of governance structures, compliance with labor standards, and transparency in reporting​​.

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5. Proportion of Investments

100% of the portfolio is allocated to agricultural investments aligned with the promoted characteristics.

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6. Monitoring of Environmental or Social Characteristics

Indicators monitored include:

• Hectares under regenerative practices

• Water use per hectare

• Employment quality indicators (e.g. wages, training, gender inclusion).

• Areas under active conservation.

• Energy and renewable energy usage.

• Direct and indirect beneficiaries.

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7. Methodologies

Assessment relies on:

• Self-reported sustainability KPIs from investee companies.

• On-farm verifications by Signature’s ESG & Sustainability teams

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8. Data Sources and Processing

Data is sourced from farm-level reporting, independent verifiers, and satellite monitoring tools.

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9. Limitations to Methodologies and Data

Limitations include variability in local data collection capacity, delayed reporting cycles, and lack of harmonised metrics across different African

jurisdictions. To address this, the portfolio applies triangulation using third-party verification and long-term monitoring.

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10. Due Diligence

Each investment undergoes ESG due diligence focusing on environmental sustainability, social inclusion, and governance

integrity. This includes site visits, compliance assessments, and stakeholder interviews. Ongoing monitoring is conducted

annually.

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11. Engagement Policies

The products adopt an active engagement strategy with investee companies and farms, including:

• ESG performance improvement plans.

• Training and capacity building.

• Corrective action protocols in case of non-compliance.

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12. Designated Reference Benchmark

These financial products do not use a designated reference benchmark to attain the environmental or social characteristics they promote.

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DISCLOSURE SUMMARIES

Sustainability Risk Policy (Article 3 SFDR)

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Integration of Sustainability Risks in Investment Advice

Signature Agri Investments integrates sustainability risks into its investment advice in line with Article 3 of the SFDR. Sustainability risks are defined as environmental, social, or governance (ESG) events or conditions that, if they occur, could cause an actual or potential material negative impact on the value of an investment.

 

Our investment process includes both qualitative and quantitative ESG screening tools to identify material sustainability risks that could affect the long-term performance of financial instruments we recommend. We regularly update our assessment methodology to reflect evolving ESG data, market developments, and regulatory expectations.

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Principal Adverse Impacts Statement (Article 4 SFDR)

Signature Agri Investments considers principal adverse impacts (PAIs) of investment decisions on sustainability factors in accordance with Article 4(1)(a) of the SFDR. Our due diligence policies include collecting data on adverse indicators such as greenhouse gas emissions, biodiversity, water usage, and social/labour matters, based on the SFDR's Annex I indicators.

 

From 2026 onwards, we will publish an annual PAI statement, which will include:

• A description of our due diligence approach

• Metrics for key sustainability indicators

• Actions taken to mitigate negative impacts

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For the Ulimi and Transnet Funds, where we act as fund advisor only, we do not consider ourselves a Financial Market Participant (FMP) within the definition of the SFDR. For the PCC Fund, we act as Fund Manager and do consider ourselves to be a FMP in respect of these investee companies. As such, the PAI reporting for the PCC fund is found below.

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Remuneration Policy Disclosure (Article 5 SFDR)

Alignment of Remuneration with Sustainability Risks

Our remuneration policy is aligned with the integration of sustainability risks as required under Article 5 of the SFDR. Incentive structures are designed to support long-term performance and risk-adjusted outcomes, including the consideration of ESG risks that could materially affect investment advice quality or client outcomes.

 

Performance reviews may consider how staff have integrated ESG considerations, where relevant to their role, to encourage responsible advisory practices.

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PCC FUND: PRINCIPAL ADVERSE INDICATORS

 

Table 1

Statement on principal adverse impacts of investment decisions on sustainability factors​

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