Sustainability Risk Policy

The relevant legal persons within the Runa Capital organization (“Runa Capital”) use all commercially reasonable efforts to integrate sustainability risks within investment evaluation framework. These risks encompass environmental, social, or governance (ESG) issues that might significantly impact an investment’s value, either currently or potentially. Before committing to any investment, Runa Capital undertakes thorough due diligence, which may include the examination of ESG dimensions to assess sustainability risks. This due diligence process is executed by the investment team at Runa Capital and the findings are crucial for making informed investment decisions. 

Should the due diligence process uncover existing or potential sustainability risks, Runa Capital retains the discretion to proceed with or withdraw from the investment. Depending on the specific transactional context and guided by the principles of proportionality and reasonability, Runa Capital may also suggest or implement strategies to mitigate these risks in its investment portfolio.
As part of Runa Capital’s commitment to sustainability risk, the definition of such risks is continually monitored and evaluated.
When considering sustainability factors in our software-focused investment decisions, it’s important to recognize that while software as a sector has a comparatively minimal direct environmental impact, indirect effects still exist. These include the energy consumption of data centers and the software’s role in enabling efficient resource use in other industries.

Our current investment strategy, which doesn’t explicitly factor in sustainability impacts, is based on this understanding of the software sector’s limited direct environmental footprint. However, considering the broader ESG aspects, such as data privacy, ethical AI use, and labor practices, is becoming increasingly important.

Looking forward, as the emphasis on sustainability grows, it might be prudent to integrate ESG considerations into our investment analysis. This approach would ensure a more comprehensive understanding of indirect impacts and broader social and governance factors, aligning with evolving investor expectations and regulatory landscapes.

Currently, our investment decisions, primarily focused on the software sector, do not actively consider the principal adverse impacts on sustainability factors. This approach is based on the understanding that the software industry generally has a minimal direct environmental footprint compared to more resource-intensive sectors. 
However, we recognize the importance of broader ESG aspects, such as the energy use of data centers and ethical concerns in software development. As the emphasis on sustainability grows globally, integrating these broader ESG considerations into our investment analysis could become increasingly relevant to align with evolving societal and regulatory expectations.