SFDR Disclosures
Knight Capital B.V. (“Knight Capital”) is committed to transparency regarding how sustainability considerations are integrated into its investment activities. This page sets out our disclosures under the Sustainable Finance Disclosure Regulation (EU Regulation 2019/2088, “SFDR”), which establishes a harmonised framework for sustainability-related disclosures within the financial services sector.
Integration of Sustainability Risks
A sustainability risk is an environmental, social, or governance event or condition that, if it were to occur, could have a material negative effect on the value of an investment. Knight Capital incorporates sustainability risk considerations into its investment decision-making process. When evaluating prospective investments, we assess ESG-related factors alongside traditional financial criteria to form a holistic view of risk and opportunity.
Our investment committee reviews potential sustainability risks as part of its standard due diligence procedures. This may include an evaluation of a company’s environmental footprint, governance structure, labour practices, and exposure to regulatory or reputational risk. Where relevant, these considerations inform our decision whether to proceed with, modify, or decline an investment.
In relation to employee remuneration, Knight Capital ensures that compensation policies do not incentivise excessive risk-taking with respect to sustainability risks. The remuneration structure for relevant persons is aligned with our overall approach to responsible and long-term value creation and takes sustainability factors into account where appropriate.
Principal Adverse Impacts Statement
Knight Capital does not currently consider the principal adverse impacts of its investment decisions on sustainability factors within the meaning of Article 4(1)(a) of the SFDR. This decision has been taken after careful consideration of the following factors:
- Data availability: Reliable and comprehensive sustainability data across the range of asset classes and geographies in which Knight Capital invests is difficult to obtain on a consistent basis. The quality and comparability of available data do not yet allow for a meaningful and accurate assessment of principal adverse impacts.
- Proportionality:Given the size, nature, and scale of Knight Capital’s activities, the resources required to collect, verify, and report on principal adverse impact indicators would not be proportionate at this stage.
Knight Capital reviews this position on an annual basis. As sustainability reporting frameworks, data infrastructure, and market practices continue to mature, we may determine that it is appropriate to begin considering and reporting on principal adverse impacts in future periods.
Contact
Should you have any questions regarding our sustainability-related disclosures, please contact us at info@knight.capital.
Knight Capital B.V. · Apollolaan 76, 1077 BD Amsterdam, The Netherlands