EU Sustainable Finance Disclosure Regulation

Pursuant to EU Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (the “SFDR”), BIP General Partner (the “AIFM”) is required to disclose the manner in which Sustainability Risks (as defined hereafter) are integrated into the investment decision and the results of the assessment of the likely impacts of Sustainability Risks on the returns of the AIFM.

"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 the investments made by the company.

Such risk is principally linked to climate-related events resulting from climate change (i.e. physical risks) or to the society’s response to climate change (i.e. transition risks), which may result in unanticipated losses that could affect the company investments and financial condition. Sustainability Risks can also affect companies by introducing social risks (e.g. gender gaps, social inequality) and governance risks (e.g. bribery issues, selling practices).

Environmental, social and governance aspects represent important considerations through the whole investment process from identification of investment opportunities, value creation strategy to divestment decisions and form an integral part of the dialogue with respective stakeholders. Sustainability Risks are integrated into the investment decision making and risk monitoring to the extent that they represent a potential or actual material risks and/or opportunities to maximizing the long-term risk-adjusted returns.

The impacts following the occurrence of a Sustainability Risk may be numerous and vary depending on the specific risk, region and asset class. In general, where a Sustainability Risk occurs in respect of an asset, there will be a negative impact on, or entire loss of, its value.

Sustainability adverse impacts

The AIFM does not consider the adverse impacts of investment decisions on sustainability factors (as defined hereafter) in the manner prescribed by Article 4 of the SFDR, considering that non-financial data is still not available in satisfactory quality and quantity to allow the company to adequately assess the potential adverse impact of its investment decision on sustainability factors.

The position will be kept under review as the underlying rules are still evolving and a more stable reporting framework has been established.

Sustainability factors means environmental, social and employee matters, respect for human rights, anti-corruption and anti-bribery matters.

PRIIPSs KID

Please contact us at accounting@bip.lu in order to obtain the password to access the PRIIPSs KID file.