Our work includes making investment decisions in portfolio companies. All managers and consultants performing services to Newton Biocapital Partners have subscribed to an internal “Credo”. That “Credo” is our driving force since its inception. It addresses topics such as social responsibility and transparent governance principles. Topics that are an intrinsic part of our way-of-working as a team and of the due diligence process when evaluating and selecting investment opportunities. After an investment in a portfolio company, the representative of Newton Biocapital Partners - together with the representatives of our syndication partners - monitor the way the management of our portfolio companies lives-up to their commitments to these good governance topics.
The European Commission has recently released a "Sustainability Finance Disclosure Regulation (SFDR)" with “Environmental, Social and Governance (ESG)" criteria that need to be followed by investment fund managers when evaluating investments. Aim is to avoid (long-term) investment risks when financing sectors and companies that are not considered sustainable in terms of ESG related topics. The SFDR-regulation itself is however unclear, especially in relation to what is expected from small and midsize investment funds such as ours. We decided to wait for defined criteria in the SFDR to be published before we officially implement the imposed rules.