Disclosure Statement of Relevant Climate-Related Risks
Oscar and Partners Capital Limited acknowledges that climate change is emerging as a major driving factor affecting long term resilience in the industry and the global economy. Thereby, this creates an urgent need to accelerate the transition towards a net-zero economy. While climate change poses a systemic and unprecedented risk to the global economy, the impacts on specific markets, regions, communities, and investments are complex, dynamic, and uncertain.
As an SFC licensed corporation, we take our fiduciary responsibility to consider and disclose all material factors that may impact the risk-adjusted returns of our investments, including climate-related financial risks and opportunities.
As an investor in the global economy, the scale and multi-faceted nature of climate change presents a systemic risk to our portfolio. Climate change impacts investors like us in two main ways:
● Physical impacts (e.g., wildfires, extreme weather, sea-level rise, drought) can affect our fixed assets (e.g., real estate) and disrupt portfolio companies' supply chains and operations. Climate change's acute and chronic physical impacts can affect people's health, food security, migration, water supply, and other ecosystem services in ways that could bring heightened volatility to financial markets and harm economic growth.
● Transition risks, or shifts in policies, technologies, industries, and customers, due to changed climate norms or movement toward a lower-carbon economy can affect the financial success of existing business models and industries. Our portfolio companies' long-term success depends on the degree to which they can successfully navigate the transition.
Given our investment portfolio, frequency of trading and investment scope, we take climate-related risks into account in our investment and risk management process. In light of this, we are taking the necessary action to account for such risks, as explained below.
Our governance structure consists of a.) supervising and overseeing of climate-related risk at the Board of Directors level and b.) planning, coordinating and promoting climate-related risk management at the management level.
To integrate climate-related risk considerations into our existing governance structures, different roles and responsibilities have been assigned to ensure proper monitoring is in place:
The Board of Directors is generally responsible for supervising the climate-related risk management process and relevant company development strategies. Its main responsibilities include:
Our management team is responsible for developing, coordinating and promoting climate-related risk management. Its main responsibilities include:
Investment and Risk management process of Climate-related Risk
Board Committee to oversee the framework and regularly review the funds’ portfolio to assess the relevance of climate related risks. The Board will consider engaging online tools and metrics to assess the climate risks relevance when the strategies or portfolios materially changed or the potential size of climate risks arises. The board will also consider engaging individual third parties to generate annually climate related risks per our funds’ portfolios and strategies, and to update this discloser when the Board consider appropriate and needed.
We have found that relevant physical/transitional climate-related risks have been identified in relation to below funds under management:
· OP Multi Strategies Investment Fund SP
· OP New Economy Growth Fund SP
· OP Stable Return Investment Fund SP