Regulatory Disclosures
Regulatory Oversight
Bardin Hill and certain of its affiliated managers are SEC-registered investment advisers and maintain their registered office at C/O Maples Fiduciary Services (Delaware) LLC, Suite 302, 4001 Kennett Pike, Wilmington, DE 19807 and their principal place of business at 299 Park Avenue, 24th Floor, New York, NY 10171.
Sustainable Finance Disclosures
The following definitions shall be used In this "Sustainable Finance Disclosures" section.
ESG means environmental, social and governance;
SFDR or Disclosure Regulation means Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector, as may be amended, supplemented, consolidated, substituted in any form or otherwise modified from time to time;
Sustainability Factors means environmental, social and employee matters, respect for human rights, anti-corruption and anti-bribery matters;
Sustainable Investment means an investment in an economic activity that contributes to an environmental objective, as measured, for example, by key resource efficiency indicators on (i) the use of energy, (ii) renewable energy, (iii) raw materials, (iv) water and land, (v) the production of waste, (vi) greenhouse gas emissions, or (vii) its impact on biodiversity and the circular economy, or an investment in an economic activity that contributes to a social objective (in particular an investment that contributes to tackling inequality or that fosters social cohesion, social integration and labor relations), or an investment in human capital or economically or socially disadvantaged communities, provided that such investments do not significantly harm any of those objectives and that the investee companies follow good governance practices, in particular with respect to sound management structures, employee relations, remuneration of staff and tax compliance;
Sustainability Risk means an environmental, social or governance event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of an investment, including but not limited to, risks stemming from climate change, natural resource depletion, environmental degradation, human rights abuses, bribery, corruption and social and employee matters;
Bardin Hill Investment Partners LP (the “Investment Manager”) recognizes that Sustainability Risks, were they to occur, could have a material negative impact on the value of an investment, and may affect the risk-adjusted returns of funds managed by the Investment Manager in varying ways and to varying degrees depending on the underlying investments. The Investment Manager, therefore, evaluates and integrates Sustainability Risk and other relevant ESG factors at multiple stages throughout the investment process, beginning with initial due diligence (pre-investment) and continuing during the lifecycle of an investment, where Sustainability Risks may become relevant due to changes in operating conditions, changes in law or policy, market expectation, new information or research and other developments. The significance of Sustainability Risks to an investment is assessed in the context of the relevant underlying asset, including its overall risk and return profile. Other relevant considerations include the level of intended or actual control or influence exercised by the Investment Manager over the investee company.
In identifying and assessing sustainability risks, the Investment Manager uses a number of methods, including specialist due-diligence and research tools and service providers and direct engagement with investee companies and their management. The Investment Manager’s engagement with the management of investee companies varies depending on the level of control or influence exercised.
Strategically significant Sustainability Risk and ESG factors and opportunities vary by industry, sector, and within industries. The Investment Manager believes that its inclusion of ESG risks and opportunities in its investment analysis and decisions enhances both risk management as well as the investment process. In addition to allowing the Investment Manager to be a better global citizen by engaging in responsible investment practices, from its perspective, it is a way of driving value. Identification of one or more Sustainability Risks alone will not generally preclude the Investment Manager from pursuing an investment where such investment is otherwise assessed to meet the investment criteria, including where such Sustainability Risks can be appropriately monitored and managed. However, there may be circumstances where the Sustainability Risks are overwhelmingly detrimental to the potential performance of an underlying investment and the Investment Manager may cease to pursue the opportunity further. For more details on how Sustainability Risk and other relevant ESG factors are integrated into the investment process, please reach out to the Investment Managers Investor Relations at IR@bardinhill.com.
Consideration of Principal Adverse Impacts of Investment Decisions on Sustainability Factors
The Investment Manager does not currently consider the principal adverse impacts of investment decisions on Sustainability Factors for the purposes of Article 7 of the SFDR as the detailed rules and guidance regarding such disclosure have not been formally adopted, and given the lack of accessible, relevant and comparable data. The Investment Manager may seek to adhere to best practices where and to the extent appropriate to its business, and will periodically evalulate information available to it.
Investment Manager’s Remuneration Policy
The Investment Manager’s remuneration policy includes a broad range of factors considered in order to determine the appropriate level of remuneration for an employee. However, sustainability risk is not considered as a discrete and separate performance component but rather assessed as part of the wider risk performance of an investment, and the employees contribution to identifying, managing and monitoring the risks attendant to investments the selection and management of which the employee is or has been actively involved.