Regulation 2019/2088/EU

The following information has been generated in accordance with Regulation 2019/2088/EU of the European Parliament and the European Council. This regulation, which focuses on sustainability-related disclosures in the financial services sector, became effective on March 10, 2021.

General considerations for sustainability risks:

We integrate awareness of sustainability risks into every essential step of our operations, encompassing our screening and due diligence processes for potential target companies, as well as portfolio governance and ongoing monitoring of our existing portfolio companies.

Pre-contractual information: Integration of sustainability risks and effect on return.

The White Box’s primary goal is to generate value and enhance the performance of our portfolio companies by actively engaging in their ownership. This approach ultimately leads to higher returns for our investors. However, even if an investment opportunity demonstrates strong potential for financial gains, The White Box maintains its commitment to sustainability and ESG (Environmental, Social, and Governance) initiatives. Therefore, if a prospective investment fails to meet our sustainability criteria, despite being a promising candidate in terms of financial return, The White Box will opt not to invest. This decision aligns with our dedication to sustainability and our commitment to making a positive societal impact

Statement on principal adverse impacts of investment decisions on sustainability factors.

At The White Box, we adhere to rigorous policies to ensure that our investments align with our stringent sustainability criteria. Our approach involves extensive research and engaging in critical dialogues with potential target companies to evaluate their sustainability impact. We maintain a steadfast stance against investing in industries such as tobacco, firearms, armaments, oil, gambling/betting, or pornography. In addition, our portfolio companies are required to establish governance structures that adhere to our sustainability principles. This includes abstaining from affiliations with “no-go” industries, adhering to UN sanctions lists, and implementing robust processes and policies to effectively manage sustainability risks. We place great value on active ownership and strong corporate governance, as these factors contribute to creating value within our investments. Furthermore, we are committed to upholding the UN Principles for Responsible Investment.

Integration of sustainability risks in renumeration policies.

The White Box requires portfolio company boards to establish comprehensive policies and systems that ensure effective board oversight of executive management. This includes conducting performance and remuneration reviews, ensuring legal compliance, adhering to accounting standards, implementing robust internal controls, and establishing solid risk management processes. These measures are essential components of The White Box’s monitoring and reporting mechanisms, which aim to mitigate excessive risk-taking, including sustainability risks, through discouragement and prevention.

The White Box’s personnel undergo an annual remuneration review in January, which takes into account their performance and adherence to our Sustainability Principles and ESG initiatives. Furthermore, if an individual, regardless of their level or seniority, has made a significant and tangible effort or has provided value-added contributions to the implementation of The White Box’s Sustainability Principles, this may be considered during the remuneration review as a discretionary reward.