HPE wants to contribute to a higher and more stable return through the integration of responsible investment in its investment policy. We believe that sustainability pays off. This does not alter the fact that as an asset manager HPE must properly assess and control foreseeable risk factors and to mitigate these. If ESG factors have an impact on the financial risks and the return of the investments, or on our reputation and the confidence of our clients’ beneficiaries, then we must analyse these factors and integrate them in the investment decisions.
We have an interest in the quality and continuity of the global investment universe. We are independent on a well-functioning financial and social system. Risk and return of the investments are largely determined by well-functioning markets, economics, sectors and companies. Attention to and the encouragement of well-functioning markets is therefore part of our role.
At the same time HPE sees responsible investments as an important expression of this identity and that of our investors. In our policy and its implementation it must therefore be recognizable and verifiable that we focus on clear principles and criteria that reflect responsible investment. In concrete terms, this can mean that HPE will not invest in certain companies or do business with certain parties.
Actions for responsible investment
The translation of the goals of the responsibility has resulted that in our Fund documentation is incorporated explicitly that the portfolio companies shall not be engaged, directly or indirectly, in:
▪ production of and trade in weapons and ammunition
▪ casinos and equivalent enterprises
▪ production of and trade in tobacco and distilled alcoholic beverages and related products
▪ human cloning for reproduction purposes, or
▪ research, development or technical applications relating to electronic data programs or solutions, which
▪ aim specifically at:
(1) supporting any activity included in the restricted sectors referred to above
(2) internet gambling and online casinos, or
(3) pornography, or which are intended to enable to illegally:
(1) enter into electronic data networks, or
(2) download electronic data
When providing financing to the research, development or technical applications relating to (i) human cloning for research or therapeutic purposes; or (ii) genetically modified organisms (“GMOs”), the Fund shall guarantee specific compliance with European Union legislation on GMOs and provide ethical guidelines and/or foresee appropriate monitoring procedures regarding such Investments.