Environmental, Social & Governance

Environmental, Social and Governance

At Obsidian Fund Services Limited (“Obsidian”) we understand the need to place ourselves alongside the rest of the world in solving our biggest problem, that being, to slow the substantial or irreversible damage happening to our society and environment.

 

Obsidian is therefore committed to net-zero greenhouse gas emissions across its operations from inception.

 

As part of this value, we strive to influence our counterparts in using investment practices compliant with the Principles for Responsible Investment issued by the UN. The six principles we commit to continuing are:

1.  We do incorporate ESG into investment analysis and our decision making.

2.  We do actively incorporate ESG in our own policies and practices.

3.  We do seek to ensure appropriate disclosure on ESG issues by the entities in which our funds invest.

4.  We do promote the acceptance and use of the principles within the investment industry.

5.  We do work together to enhance our effectiveness in implementing the principles.

6.  We do report on our activities and progress towards implementing the principles.

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Responsible investment

 

We share the public view that ESG is an incredibly important part in ensuring responsible and sustainable investment.  In as far as we are able, we will review investments of our funds for criteria such as location, operations, internal policies on responsible investment and actions encouraging greater sustainability.

 

Where appropriate, we do not support investments in funds with little or no commitments to behaving more sustainably.

ESG at Obsidian


Obsidian endeavours to exhibit best practices in its organisation.


Environmental considerations:

 

  • We will monitor our usage and production of energy, CO2, water and waste to reduce our carbon footprint wherever possible.
  • As a service provider we understand the ability to operate virtually paperless. Obsidian therefore strives to keep any paper usage to a minimum.
  • As far as is possible, we will limit travel for business purposes to reduce our im-pact on the environment.

 

Social considerations:

 

  • Exemplary labour standards for staff. All staff are trained to a high standard on fraud, anti-money laundering and conflicts of interest.
  • In a view to promoting integrity within our industry, all staff complete an integrity assessment certified by the Chartered Institute for Securities and Investment.
  • We aim for good employee-employer relationships. All staff are treated equally with respect and transparent communication.

 

Governance considerations:

 

  • We exercise our fiduciary duty and act in the best interest of our clients without bias.
  • We strive to act fairly and transparently treating all investors equally.
  • Obsidian’s compensation is fully disclosed and agreed with our clients in advance. We will never unlawfully profit from our client relationships.
  • We encourage and exhibit board diversity and appointment of independent non-executive directors.

Information about Obsidian’s Integration of Sustainability Risk

 

The below information is disclosed in line with regulatory obligations relating to Regulation (EU) 2019/2088 (SFDR) of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector which came into force on the 10th March 2021.


In line with SFDR obligations, Obsidian falls under the scope as a Financial Market Participant.


Article 3 of SFDR requires Financial Market Participants to publish on their website information about their policies on the integration of sustainability risk in their investment decision processes.


Obsidian has in place a sustainability risk policy which overseen by the Board. The policy provides that Obsidian seeks to inform its clients in relation to sustainability factors and to develop internal tools and resources which promote awareness and understanding of ESG risks within the firm as well as additional reporting for our clients. Obsidian is committed to assisting our clients to delivering attractive risk-adjusted returns for their investors over the long-term and encourages our clients to adopt a system where ESG risk factors are considered as part of the broader investment process. Such an approach results in managed portfolios that do not automatically exclude issuers from investment purely on ESG criteria but helps our clients to be aware of and take informed investment decisions with knowledge of key ESG risks. Obsidian considers that this approach to the investment process whereby emphasis is made on ‘looking at the bigger picture’ will ensure that while ESG factors are an important factor of investment decisions, these are not necessarily the key determinants in the final investment decision making process, which ultimately reflects the view of an investment’s risk or return.


Obsidian is committed to sustainability over the long term and will provide our clients with the necessary tools and reporting to actively monitor and manage these risks.


Remuneration Policy


Obsidian’s employee remuneration is set to ensure that remuneration rewards staff members that act in line with the mission, vision and strategy adopted by the Company. Sustainability risk is integrated within Obsidian’s remuneration policy and therefore, Obsidian expects all employee members to follow such practices as set by the Company.