The European Commission adopted a package of measures on sustainable finance in May 2018. One component of this package is the Sustainable Finance Disclosure Regulation (“SFDR”) which aims to standardize disclosure requirements on how financial market participants integrate environmental, social and governance (“ESG”) factors in their investment decision-making and risk processes.
TIR is committed to operating in accordance with its Sustainable Forestry Policy once an investment in the timberland asset class is made. Prior to making any decision to invest in a timberland asset, a review of the potential acquisition is performed as part of the due diligence process. However, there is no systematic process for assessing any adverse impacts of investment decisions on broader sustainability factors, given that any investment is made with a view to ensuring the day-to-day management of the forest is carried out sustainably. In terms of sustainability risks, TIR considers relevant financial and non-financial risks during the initial stages of the investment decision making process. Given the nature of investing in forestry, risks relating to environmental factors are taken into consideration in the due diligence phase prior to making an investment decision. In addition, the remuneration policy has been designed to ensure that employee compensation is consistent with and promotes sound and effective risk management; does not encourage excessive ESG-related risk taking; includes processes to avoid conflicts of interest; and is in line with the firm’s business strategy, objectives, values and long-term interests.
At the product level, for any TIR funds disclosing under Article 8 or Article 9 of the SFDR, TIR has published the following website disclosure statements.