BSIF’s sustainability-related disclosures
Environmental or Social Characteristics of the Financial Product
Bluefield Solar Income Fund Limited (the “Company”) promotes environmental or social characteristics in line with Article 8 of the Sustainable Finance Disclosure Regulation (SFDR).
The environmental characteristics promoted by the Company are to reduce reliance on fossil fuels and facilitate the UK transition to renewable and sustainable methods of energy generation. The Company considers that its investments substantially contribute to the environmental objective of Climate Change Mitigation.
The Company’s Pre-contractual Disclosure Document can be read here.
Statement on Principal Adverse Impacts of Investment Decisions on Sustainability Factors
On 30 June 2023, the Company published its first report on the Principal Adverse Impacts (PAI) of its investment decisions on sustainability factors, covering the reporting period of 1 January to 31 December 2022. The report can be found here.
The regulatory technical standards (RTS) underpinning the EU Sustainable Finance Disclosure Regulation (SFDR) prescribe 14 mandatory PAI indicators that the Company must consider as part of measuring its ESG progress and performance. The SFDR RTS also mandates that the Company considers at least one additional indicator relating to climate and other environment-related matters; and one additional indicator relating to social and employee matters, respect for human rights, anti-corruption and anti-bribery matters. For each of these indicators, the Company has undertaken an assessment to identify and prioritise the indicators that relate to the activities of the Company and the impact of such activities on each indicator. In line with the Company’s ESG strategy, the additional PAI indicators that have been selected for the Company to report against are:
- Lack of a human rights policy: Share of the Company’s AUM whose operations operate without a human rights policy; and
- Natural species and protected areas: Share of the Company’s AUM whose operations affect threatened species; Share of the Company’s AUM which operate without a biodiversity protection policy covering operational sites owned, leased, managed in, or adjacent to, a protected area or an area of high biodiversity value outside of protected areas.
Sustainability considerations have already been integrated into the Company’s investment process (please refer to the Company’s Article 23 disclosure and Sustainable Investment Policy for a full breakdown) and PAI indicators are included within the Company’s investment ESG due diligence questionnaire. PAI indicators were also a key consideration during the development of the Company’s ESG strategy and are reflected within its associated commitments and KPIs (a full breakdown of which is included within the Company’s 2022 Annual Accounts). Ongoing integration of the Company’s ESG strategy into portfolio-related activities will enable the monitoring of PAIs across the asset lifecycle.