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.
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.
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.
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.