Sustainability-related disclosures

1.1 Fund Manager and Fund information

Sunstone Life Science A/S, CVR-no. 33859198 “Sunstone” has the following alternative investment funds under management:

Sunstone Life Science Ventures Fund II K/S, CVR-no. 30582268

Sunstone Life Science Ventures Fund III K/S, CVR-no. 34085919

Sunstone Life Science Ventures Fund IV K/S, CVR-no. 38778536

The alternative investment funds listed above are for the purposes of these website disclosures referred to as the “Funds”.

1.2 Integration of sustainability risks in the investment decision-making process

When making investments, Sunstone considers the ethical, environmental, and societal consequences of such investments.

Awareness of sustainability risks is built into all of our key processes, from our screening and due diligence of potential target companies to our portfolio governance and monitoring of portfolio companies and shall always comply with each of the Funds’ CSR and Investment Policy.

For each Fund, sector specific restrictions are further included in the investment policy. 

Sunstone has looked at the sustainability risks likely to have an impact on the returns of the Funds, and Sunstone believes there is a low to minimal risk to the returns due to those sustainability risks. 

Based on the assessment of relevant sustainability risks, Sunstone will ensure that the Funds do not perform R&I activities considered as illegal according to the applicable legislation in the country of  the Fund in question, just as Sunstone will not invest, guarantee or otherwise provide financial or other support, directly or indirectly, to companies or other entities:

  1. whose business activity consists of an illegal economic activity, including without limitation, human cloning for reproduction purposes.
  2. who focus on:
  1. the production of and trade in tobacco and distilled alcoholic beverages and related products; 
  2. the financing of the production of and trade in weapons and ammunition of any kind, it being understood that this restriction does not apply to the extent such activities are part of or accessory to explicit European Union policies;
  3. casinos and equivalent enterprises; or
  4. the research, development or technical applications relating to electronic data programs or solutions, which (x) aim specifically at supporting any activity referred to under 1) to 2) above, internet gambling and online casinos or pornography or which (y) are intended to enable to illegally enter into electronic data networks or download electronic data. 

Finally, when providing support to the financing of the research, development or technical applications relating to (i) human cloning for research or therapeutic purposes or (ii) genetically modified organisms (“GMOs”), Sunstone will ensure the appropriate control of legal, regulatory and ethical issues linked to such human cloning for research or therapeutic purposes and/or GMOs. 

Notwithstanding the aforementioned, research activities (i) aiming at human cloning for reproductive purposes, (ii) intended to modify the genetic heritage of human beings which could make such changes heritable (excluding research relating to cancer treatment of gonads), and (iii) intended to create human embryos solely for the purpose of research or for the purpose of stem cell procurement, including by means of somatic cell nuclear transfer, are also excluded.

Further, Sunstone considers the environmental risks associated with its investments. In addition to ensuring compliance with applicable environmental legislation, Sunstone will work for minimizing the negative social and environmental impact of the business of its portfolio companies.

In addition, Sunstone will in its decision-making process take the necessary steps to investigate and ensure that the target company:

  • carefully considers the ethical ramifications of its activities;
  • comply with applicable laws and regulations in the markets in which it operates;
  • uphold the necessary respect for international human rights principles and comply with relevant labour conventions;
  • does not tolerate any form of discrimination based on race, gender, sexual orientation, age, disability, religion, political or other opinion, cultural background, ethnicity or other distinguishing characteristics in its organisation;
  • is not domiciled in countries subject to trade embargoes imposed by the United Nations or the European Union that have been endorsed or otherwise officially ratified or approved by the Kingdom of Denmark from time to time;
  • is not engaged in transactions or financing of activities which have as their main purpose tax evasion; and
  • to the greatest extent possible apply similar principles to significant sub-suppliers.

1.3 Remuneration policies

Sunstone’s remuneration policies are structured to the effect that these do not encourage excessive risk-taking with respect to sustainability risks. Further, Sunstone’s remuneration structures are linked to risk-adjusted performance.

Published 10 March 2021 – Section 1.2 updated 9 May 2022