Sustainability

In light of the implications of climate change in general – as recently evidenced by the sixth assessment report by the IPPC – both in terms of physical and transitional risks and opportunities, and the fact that the shipping sector holds responsibility for its adverse impact on the climate, Navigare Capital Partners places great emphasis on its responsibility in the field of sustainability.

Responsible Investment Policy

Responsible investing is a key element of Navigare Capital Partners’ investment strategy – an element which is integrated into the entire investment process and all key decisions related to it, from deal origination to exit.

Its integration is ensured via the careful consideration of sustainability – covering the most material environmental, social and governance (ESG) issues – in every process and decision of the company across the entire value chain through clear guiding principles as well as measurable KPIs.

The purpose of the Responsible Investment Policy is to set the principles and framework for Navigare Capital Partners’ integration of sustainability into all aspects of the company, including all steps in the investment process, and the supporting governance processes and stakeholder relations.

See the Responsible Investment Policy here

Policy for integration of sustainability risks

In Navigare Capital Partners we perceive sustainability risks or ESG risks as environmental, social, or governance events or circumstances which - if they occur - may have an actual or potentially significant adverse impact on the value of an investment in one of the Maritime Investment Funds we have under management.

We continuously strive to work in the best interests of our investors and therefore, when making investment decisions, we consider the main adverse sustainability effects that may arise in executing the investments. Our policy for integration of sustainability risks describes how sustainability risks are integrated into our investment decision-making process.

See the policy for integration of sustainability risks here

Principal adverse sustainability impacts statement

As manager of alternative investment funds Navigare Capital Partners is dedicated to serve professional investors by facilitating investments in maritime assets within different shipping segments and thereby create diversified investment portfolios of maritime assets.

As a responsible fund manager, Navigare Capital Partners is committed to the highest degree of business conduct and to comply with the provisions in the following convention:

  • UN Principles for Responsible Investments

In doing so, Navigare Capital Partners acts in the best interest of the investors, including but not limited to, conducting adequate due diligence activities prior to making investment proposals and investments. The impact of sustainability risks is integrated in these due diligence activities and in the subsequent investment decisions.

The adopted due diligence policies ensures that potential investment opportunities are thoroughly screened to assess their principal adverse sustainability impacts through:

  • Emissions of greenhouse gases, including CO2, NOx, SOx: Assets must comply with regulatory provisions on emissions
  • Fuel consumption and fuel efficiency: Assets must comply with regulatory provisions on fuel and energy consumption
  • Ballast water treatment: Assets must comply with regulatory provisions on ballast water

Further, any proposed counterparty who is a candidate to enter into a charter agreement regarding the investment asset must be thoroughly screened to assess their competencies and their compliance with the provisions in the following international conventions:

  • UN Global Compact
  • UN Guiding Principles on Business and Human Rights
  • OECD Guidelines for Multinational Enterprises
  • ILO Declaration on Fundamental Principles of Right at Work

While operating the assets, Navigare Capital Partners has effective operational procedures ensuring continuous follow-up on quality, resources, results, and the ESG-related practices of the counterparties having chartered the assets. The follow-up is organized in such a way as to ensure that the portfolio is compliant with the sustainability standards defined by Navigare Capital Partners.

Any detected deviation must be investigated and sought to be remedied as soon as possible.

Remuneration

Navigare Capital Partners remuneration policy reflects the objectives of corporate governance as well as sustainable and long-term value creation for the investors.

The remuneration policy meets, among other things, the new requirements under EU Regulation (EU) 2019/2088 to describe how sustainability risks are handled in relation to remuneration.

Sustainability risks are included in the overall risk parameters in the remuneration policy to determine the remuneration in Navigare Capital Partners, just as the remuneration policy aims to prevent financial incentives for excessive risk-taking with respect to sustainability risks, which may lead to adverse negative consequences for the return to our investors.

Overall, the following principles are set out in the remuneration policy:

  • Material Risk Takers are identified on an annual basis by the Board of Directors
  • Fixed remuneration is determined based on the role and position of the individual employee
  • Performance-based remuneration is subject to relevant restrictions in accordance with the AIFM regulation
  • Any bonus criteria are determined on an annual basis by the Board of Directors and shall not conflict with sound and efficient risk management principles, including in relation to sustainability risks, and shall be designed in a way to avoid risk taking with respect to sustainability risks and other relevant risks

Navigare Capital Partners is a signatory to the Principles for Responsible Investment (PRI) Association

The PRI works to understand the investment implications of environmental, social and governance (ESG) factors and to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions. The PRI acts in the long-term interests of its signatories, of the financial markets and economies in which they operate and ultimately of the environment and society as a whole.

Navigare Capital Partners is a member of the Maritime Anti-Corruption Network (MACN)

The MACN is a global network of maritime companies working to ensure that the maritime industry remains free of corruption. Established in 2011 by a small group of committed stakeholders, the MACN has grown to include 130+ companies globally. To date, the MACN’s collective work has led to a significant reduction in demands for facilitation payments in many hot spots worldwide. Through MACN´s pillars – the three C’s: capacity building, collective action and collaboration – experts are working together to raise the integrity standard in maritime trade.

Navigare Capital Partners consistently sets the bar high and maintains high standards in all aspects of our business, and we are especially focused on operational ethics, transparency and proper working conditions. MACN’s aim to eliminate corruption in the maritime industry is closely aligned with our own values, philosophy and way of doing business.