In March 2018 the European Commission initiated the Sustainable Finance ActionPlan as a response to the recommendations of the EU’s High-level Expert Group onSustainable Finance, the United Nations Sustainable Development Goals (UN SDGs)and the Paris Agreement. The Action plan supports the goal of the EU Green Deal toreach climate neutrality in Europe and includes ten key action points that can be splitinto three categories:
The Sustainable Finance Disclosure Regulation (SFDR) aims to improvetransparency, prevent greenwashing, and create a common language amongstFinancial market participants around sustainable investing. Every investor mustdisclose to what extent they consider sustainability in their investment decisions, andthen report accordingly. Each fund must disclose whether they are aligned with article6, 8 or 9 where:
A sustainable investment means an investment in an economic activity that cancontribute to an environmental and/or social objective, provided that it does notcause any significant harm to any of the objectives, and that the investee companyfollows good governance practices.
Katapult Ocean is committed to adhering to the EU’s Sustainable Finance Disclosure Regulation(SFDR) ((EU) 2019/2088) and making available sustainability-related information with respect to ourinvestment process and funds. As an impact investor, sustainability and impact are core to ouroperations and we would like to enable investors to make informed decisions on sustainableinvestments. Katapult Ocean is committed to make entity level disclosures aligned with the SFDR. Thisincludes Katapult Ocean’s sustainability risk policies, considerations for adverse impacts, andtransparency on remuneration policies in regards to sustainability risks.
Entity-level sustainability related disclosures
Transparency of sustainability risk Article 3
Considerations for Adverse Impacts (entity level) Article 4
Remuneration policy in regard to sustainability risk Article 5
The intention of the SFDR is to increase transparency on sustainability of financial products. KatapultOcean supports this initiative as we have sustainable investments within the ocean space as our coreobjective. We’re aiming to maximize positive impact on people and/or the planet with everyinvestment we do, while delivering market returns to our investors.
SFDR article 3 requires financial market participants such as Katapult Ocean to publish on theirwebsites information about their policies on the integration of sustainability risks in their investmentdecision‐making process. In SFDR article 2, sustainability risk is defined as “an environmental, socialor governance event or condition that, if it occurs, could cause an actual or a potential materialnegative impact on the value of the investment”. Sustainability risk is also called "outside-in" risk,which describes the risk that external, sustainability-related events may cause lower returns. Theserisks could influence the investment’s reputation, operational results, financial stability, or net assets.Katapult Ocean assesses sustainability risks as part of the investment screening and due diligenceprocess before an investment is conducted.
Katapult Ocean’s investment objective is primarily toinvest in companies with a positive impact, meaning companies that solve climate and biodiversitychallenges, provide food and clean water for people globally. Still for all investments, sustainable ornot, sustainability risks could materialise, and if so it may in a negative way influence the value of theinvestment. Where available, the Principal Adverse Impact (PAI) indicators as defined in Table 1 of Annex I to Commission Delegated Regulation (EU) 2022/1288 are considered during the due diligencephase to indicate any potential climate, environmental, social, or employee matter risks. In addition,our risk screening process includes several critical dimensions including risk of violations to HumanRights, Corruption, Water stress, Modern slavery, Labour rights and Biodiversity. Should such risksmaterialize, it could cause an actual or a potential negative impact on the value of the company andaffect the performance and returns of our products. If the screening or due diligence revealunmanageable sustainability risks that cannot be resolved or mitigated, Katapult Ocean will abstainfrom making the investment. Otherwise, the findings from the pre-investment phase will form part ofthe basis for the ESG and impact strategy, subsequent engagement and follow-up with the companywith the aim of identifying, mitigating and handling sustainability risk during Katapult Ocean’sownership period.
Read more here:
Deep Blue Fund 1 - SFDR Website disclosures
Katapult Ocean ESG and Impact guidelines
Katapult Ocean Periodic disclosure June 2025
Katapult Ocean SFDR Website disclosure