ALSA Ventures I GP S.à r.l. does not consider possible adverse impacts of its investment decisions on sustainability factors when managing the Luxembourg based alternative investment fund ALSA Ventures I SCSp (the“Fund”), therefore, the Fund is classified as a non-sustainable fund under the terms of SFDR (Article 6 SFDR).
ALSA recognizes the growing importance of environmental, social and governance issues in today’s society. Therefore, in order to help support and develop successful biotech companies, factors that affect a company’s employees, its impact of the environment and society need to be considered to promote good practice, preserve reputation and ultimately profitability.
ALSA abides by the principles of the United Nations Principles for Responsible Investment and as such, is committed to being a socially responsible investor and to ensuring it has processes embedded to evaluate and consider the social, environmental and ethical issues of its proposed investments, whilst aiming to improve the health and well-being of the population by supporting investment into biotech companies, with the potential to significantly improve healthcare treatment for patients with serious diseases.
In addition, ALSA aims to conduct its own business within a clear corporate governance structure, with high standards in relation to promoting an open, equality rich culture, and aim to be an employer of choice, whilst encouraging sustainability and reducing its environmental impact wherever possible.
ALSA believes that the SFDR regulations bring attention to matters of high importance for society and the environment. However, currently these are in their early stages, need further development in order to consider applying them in relation to Research and Development companies in the biotechnology sector. For example, they do not capture all relevant ESG and regulatory factors e.g. compliance with the Medicines and Healthcare products Regulatory Agency’s (MHRA) Good Clinical Practice Guidelines or the Animal Welfare Industry Standards (3Rs) guiding principles for more ethical use of animals in testing, which are key factors in ALSA’s investment approval process.
Finally, SFDR regulations are not practical to implement in such small fledgling companies, so ALSA will continue to monitor the developments in the regulations and look for consideration of the above factors to be introduced.