Purpose

Article 5 of the Sustainable Finance Disclosure Regulation requires financial market participants to include, in their remuneration policy, information on how that policy is consistent with the integration of sustainability risks. A sustainability risk is an environmental, social or governance event or condition that, if it occurs, could cause an actual or potential material negative impact on the value of an investment.

 

This statement describes how the remuneration arrangements of Signature Agri Investments B.V. (“Signature”) are consistent with the integration of sustainability risks.

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Consistency with the integration of sustainability risks

Signature’s remuneration arrangements are designed to be consistent with sound and effective risk management, including the management of sustainability risks, and are structured so as not to encourage excessive risk-taking with respect to sustainability risks.

 

Remuneration at Signature comprises fixed remuneration and may include a variable component. Fixed remuneration is set at a level sufficient to ensure that staff are not dependent on variable remuneration, so that no individual is incentivised to disregard Signature’s risk management standards — including its sustainability risk and environmental and social standards — in pursuit of short-term reward. Where variable remuneration is awarded, it is not structured in a way that rewards the taking of sustainability risks inconsistent with Signature’s ESG and impact standards or the risk profile of the funds it manages. 

 

Signature integrates sustainability risks into its investment process as described in its Sustainability Risk Integration Statement. Adherence to Signature’s policies and procedures, including its ESG and impact standards, forms part of the basis on which staff conduct and performance are assessed. Remuneration decisions are made with regard to long-term, risk-adjusted performance rather than short-term returns alone.

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Governance and review

Signature’s remuneration arrangements are maintained proportionately to its size, internal organisation, and the nature, scope, and complexity of its activities. Responsibility for the remuneration arrangements rests with Signature’s management, which reviews them periodically, including their consistency with the integration of sustainability risks.

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Relationship to other disclosures

This statement addresses the consistency of Signature’s remuneration arrangements with the integration of sustainability risks (Article 5). It should be read together with our Sustainability Risk Integration Statement (Article 3), our statement on the principal adverse impacts of our investment decisions on sustainability factors (Article 4), and, for The Regenerative Capital Fund (ReCa) specifically, the product-level sustainability-related disclosures made under Articles 9 and 10 SFDR.