Teslin Participaties Coöperatief UA (“Teslin Participaties”) holds substantial long-term stakes in Dutch publicly listed companies as a constructive and engaged shareholder. Teslin Participaties promotes ecological and social characteristics but does not have a sustainable investment objective. Teslin Participaties does not currently take into account the principal adverse impacts of its investment decisions on sustainability factors but expects to have sufficient data to do so in the short to medium term.
No Sustainable Investment Objective
This financial product promotes ecological or social characteristics but does not have a sustainable investment objective as defined in Article 9 of Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (the “SFDR”).
Ecological or Social Characteristics of the Financial Product
Teslin Participaties promotes ecological and social characteristics.
Teslin Participaties promotes the following environmental objectives as defined in Regulation (EU) 2019/2088 (the “Taxonomy”): climate change mitigation, climate change adaptation, sustainable use and protection of water and marine resources, transition to a circular economy, pollution prevention and control, and protection and restoration of biodiversity and ecosystems.
Teslin Participaties promotes the following social objectives: decent work, adequate living standards and well-being, and inclusive and sustainable communities and society. The sub-objectives of these goals include employee safety, employee well-being, recruitment, development and retention of employees, diversity, human rights, data privacy, and security.
Teslin uses quantifiable and qualifiable sustainability indicators and reports annually on these. See the description under ‘Methodology.’
Investment Strategy
The investment strategy of Teslin Participaties can be summarized as follows:
- Teslin Participaties aims to acquire stakes of at least 5% in publicly listed companies with a market capitalization of up to €2 billion (small and mid-caps) at the initial time of investment by the fund;
- It may also invest in preferred shares and (convertible) bonds of these companies;
- It may retain a stake following a delisting;
- It may participate in a planned IPO and thus invest in a company that is not yet publicly listed;
- It is an active and engaged investor focused on long-term value creation, considering the interests of relevant stakeholders involved in the investment.
Teslin Participaties actively invests in companies well-positioned for a sustainable future or at least have the ambition to become so. Teslin Participaties believes that this is only possible if a company conducts business responsibly, meaning that the company must consider the interests of all stakeholders, the environment, and society. The fund focuses on long-term value creation while considering the interests of relevant stakeholders. A key part of the investment strategy is identifying and managing risks, including sustainability risks. Teslin Participaties achieves this through in-depth knowledge and close involvement with a select number of companies.
Sustainability aspects are an integral part of Teslin's investment activities and operations, both before and during the investment period.
The binding elements used in selecting investments to meet the ecological and/or social characteristics promoted by Teslin Participaties are:
- Investment universe and exclusion policy: Teslin Participaties invests in Dutch small and mid-caps, which entails relatively low exposure to sustainability risks. The country risk is relatively low, and certain high-risk sectors, such as mining and oil production, are not present in this investment universe. Additionally, Teslin Participaties explicitly excludes certain sectors, such as tobacco, weapons, pornography, and gambling. Teslin Participaties also does not invest in a company if it has reason to believe that an investment in that company cannot qualify as sustainable in the medium to long term.
- Conducting fundamental analysis of the company: ESG is a part of Teslin Participaties' fundamental analysis, aiming to determine whether a company can sustainably create value in the medium to long term and is therefore future-proof.
- Exercising active shareholder engagement, as outlined in the Stewardship Policy of Teslin Capital Management BV (“TCM”): Teslin Participaties actively supports companies in their transition to a sustainable future. Because Teslin Participaties takes substantial stakes in the companies it invests in and positions itself as a constructive shareholder, it is uniquely positioned to challenge these companies on ESG matters, encourage improvements, and monitor progress over time.
Regarding the proper governance structure of publicly listed companies, TCM has outlined its vision in the Stewardship Policy. Teslin Participaties focuses on the following topics:
- Appointment and composition of the management board and supervisory board;
- Independence and responsibility of the management board and supervisory board;
- Remuneration policy, shareholder rights, and integrity (throughout the value chain);
- Compliance with laws and regulations.
TCM has an ESG committee whose goal is to identify and implement potential sustainability improvements within the investment funds it manages and the companies in which these funds invest.
Allocation of Investments
Teslin Participaties will allocate its assets based on its investment strategy, as discussed under “What investment strategy does this financial product follow?” Teslin Participaties has not set a minimum percentage for its investments used to meet the ecological or social characteristics it promotes. Teslin Participaties has also not established a minimum share of its investments as sustainable investments.
Teslin Participaties intends to allocate its assets entirely to sustainable investments in the long term, in accordance with the chart below. The percentages in the table below reflect the intended relative weighting of its investments.
