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Sustainability

At Standout Capital, sustainability is integral to how we invest and operate. We take a structured approach to environmental, social, and governance (ESG) factors — from initial screening through ownership to exit — because we believe responsible investing creates better long-term outcomes for our portfolio companies, our investors, and society at large.

Standout Capital III AB (Reg. No. 559514-1101) and Standout Capital III (D) AB (Reg. No. 559543-0751), acting together as Standout Capital III (“SC III”), is classified as an Article 8 product under the SFDR — a financial product that promotes environmental and social characteristics. The following disclosures are made in accordance with SFDR and the accompanying Regulatory Technical Standards (EU) 2022/1288.

Transparency of sustainability risk policies

Standout Capital Management AB integrates sustainability risks into investment decisions at every stage of the investment lifecycle:

  • Sourcing and screening: ESG screening to identify material sustainability risks before commitment.
  • ESG due diligence: Mandatory pre-investment assessment of environmental, social, and governance risks and opportunities.
  • Investment decision: Material ESG risks are assessed by the Investment Committee alongside financial considerations.
  • Ownership and monitoring: Annual KSI data collection and board-level ESG engagement during the holding period.
  • Exit: ESG performance communicated to potential buyers as part of vendor due diligence.

For a detailed overview of how we integrate sustainability-related risks into our investment decisions, please refer to our ESG Policy.

No consideration of principal adverse impacts

Standout Capital Management AB does not currently consider principal adverse impacts (PAI) on sustainability factors at entity level. This reflects the limited availability of standardised ESG data from the privately held, small-cap Nordic technology companies in which we invest. We monitor a defined set of key sustainability indicators that are practically measurable for our portfolio companies and review our PAI approach annually.

Transparency of remuneration policies in relation to sustainability risk

Standout Capital Management AB’s remuneration policy is designed to be consistent with the integration of sustainability risks into investment decisions, in accordance with Article 5 SFDR. The remuneration structure does not create incentives to take excessive risks — including sustainability-related risks — that are inconsistent with the investment mandate.

Standout Capital III — Sustainability-Related Disclosure

Standout Capital III AB (Reg. No. 559514-1101) and Standout Capital III (D) AB (Reg. No. 559543-0751) together promote the following environmental and social characteristics:

  • GHG Emissions Intensity — Scope 1 and 2 emissions relative to revenue. Target: no year-on-year increase at portfolio level.
  • Diversity Metrics — Gender diversity in boards and senior leadership.
  • Employee Wellbeing — Annual turnover rate and employee satisfaction.
  • Corporate Governance — Code of Conduct, anti-corruption, and AML policies in place.

Annual sustainability performance is reported in the fund’s periodic investor report (SFDR Annex IV), published after each financial year.