At FGI Capital
we don’t just invest,
we shape the future.

At FGI Capital, we recognize the importance of integrating sustainability risks into our investment decision-making process. In accordance with Regulation (EU) 2019/2088 (SFDR), sustainability risks refer to environmental, social, and governance (ESG) factors that could potentially have a material negative impact on investment value.

As a responsible asset manager, FGI Capital carefully evaluates and incorporates sustainability risks across all investment activities. Our approach is guided by the following principles:

• Commitment – We proactively identify and monitor not only traditional risks (market, credit, liquidity, operational risks) but also sustainability risks that may impact investment value.

• Adaptability – We assess sustainability risks on a case-by-case basis, ensuring tailored evaluations based on fund characteristics and target investments.

• Proportionality – Sustainability risks are considered relative to the nature, scale, and complexity of each investment, ensuring a balanced and effective approach.

These principles are embedded throughout our investment process:

• Screening – We assess potential investment opportunities using publicly available data and third-party insights, identifying exposure to sustainability risks. Sectoral risk profiles are periodically updated.

• Investment Analysis – Our team conducts in-depth research, including engagement with target companies, to refine risk assessments.

• Due Diligence – Where applicable, sustainability risks are integrated into due diligence activities, often with external consultants, ensuring proper risk mitigation strategies.

• Investment Decision – Sustainability risks are factored into investment decisions, with mitigation measures applied where necessary, including shareholder engagement.

• Portfolio Monitoring – ESG risks are continuously reviewed throughout the investment lifecycle, with mitigation strategies adjusted as needed.

FGI Capital remains committed to enhancing the integration of sustainability risks in our decision-making process. As industry standards evolve, we will update our approach and disclose relevant changes on our website.

At this time, FGI Capital does not formally consider the adverse impacts of investment decisions on sustainability factors, as outlined in Article (3) and (4) of the SFDR. This decision is based on the following considerations:

• Our funds do not fall within the scope of Article 8 or Article 9 of the SFDR.

• Investments under our management do not specifically align with EU criteria for environmentally sustainable economic activities.

• The availability of public ESG data, particularly regarding the indicators listed in Annex I of Commission Delegatet Regulation (EU) 2022/1288, is currently insufficient for meaningful assessment.

• Acquiring comprehensive ESG data externally would impose disproportionate costs without ensuring the necessary depth of information for effective decision-making.

However, FGI Capital remains open to reassessing this position in the future. Should circumstances evolve, we will transparently update our investors and stakeholders on any changes to our approach.

FGI Capital recognizes the importance of a fair and competitive remuneration policy in aligning the interests of investors, stakeholders, and employees. However, at this stage, sustainability risks are not directly integrated into our remuneration structure, due to:

• Our funds not being classified under Article 8 or Article 9 of the SFDR.

• The current lack of sufficient ESG data to effectively incorporate sustainability risks into compensation strategies.

Despite this, FGI Capital will continue to reassess the integration of sustainability risks into its remuneration policy and will provide timely updates should this approach evolve.

At FGI Capital, we are committed to responsible investment, ensuring that risk management and value creation align with long-term sustainability considerations.