Luxcara follows a sustainability themed investment strategy by specializing exclusively on renewable energy investments. The company’s responsible investment policy includes not only ecological factors, but also social and corporate governance aspects. Luxcara screens ESG factors during the investment and decision processes as well as part of the regular monitoring.
Environmental: Luxcara’s core business is renewable energy and thereby contributes to environmental sustainability per se. In addition, all assets undergo a detailed due diligence process including ESG issues. With respect to environmental issues, all of Luxcara’s investments need to make a positive contribution to climate change and to reaching the Sustainable Development Goals (SDG). It is not possible for Luxcara to invest in assets, which do not make a contribution against climate change. Furthermore, already at the pre-investment stage it is checked whether the deconstruction / recycling plan meets Luxcara’s waste management expectations, and if the investment does compensate its environmental impact.
Social: Luxcara only realizes investments that comply with human rights and working rights standards. Luxcara does include in its ESG DD prior to the investment decision the possibility of conflicts with the local community before and after commissioning, e.g. due to construction works and noise or light pollution. Luxcara actively engages in strengthening community relations.
Governance: Every investment needs to comply with anti-corruption standards and needs to be independent and stable. The supply chain needs to be fully transparent regarding all involved parties. Every business partner is asked to sign Luxcara’s business partner code of conduct, which is based on the UN Global Compact, the UN Principles for Responsible Investment, the German Corporate Governance Codex and the CFA Asset Manager Code.