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Basic Product Information
| Name of the Product: |
HgCapital Trust PLC ("HgT"). |
| Name of the Manager: | Hg Pooled Management ("Hg Pooled"). |
| Date of Disclosure: |
24/04/2025 |
|
ISIN: |
GB00BJ0LT190 |
No Sustainability Label
Sustainability labels help investors find products that have a specific sustainability goal. HgT does not use an FCA sustainability label. These consumer-facing disclosures are being provided in accordance with ESG 5.2.1R(2) of the FCA's Handbook as Hg Pooled uses certain sustainability-related terms listed in ESG 4.3.2R(2) in HgT's financial promotions. HgT does not use a sustainability label because it considers financially material sustainability factors in its investment process and uses relevant sustainability-related terms in its financial promotions to describe how it integrates such factors, but the Product does not have a specific sustainability goal.
Product's Sustainability Approach
HgT seeks to provide investors with consistent long-term returns by investing predominantly in unquoted software and services businesses where value can be created through strategic and operational change. Hg Pooled believes that financial and ESG performance are interconnected, and is committed to driving improvements in HgTs portfolio across the most material ESG topics.
Hg Pooled has developed a Responsible Investment Policy centred around key ESG focus areas for software and service companies, and has subsequently developed a Sustainable Business Framework to guide ESG due diligence during onboarding and annually thereafter. During onboarding, each portfolio company responds to over 100 questions and gets a score from 0-10 to benchmark their performance across HgT's portfolio, following which an output report is developed to outline the results alongside some key actions for the next 12 months. A similar diagnostic is conducted at least annually, and improvements are made year on year. Hg Pooled offers hands-on support to portfolio companies to drive progress on their ESG improvement plans i.e., by sharing templates, toolkits and hosting online webinars as well as in-person forums.
Furthermore, Hg Pooled undertook a materiality assessment in 2022 and 2023 to identify the ESG topics that pose the highest risk to HgT's returns, while offering the greatest opportunities. Performance with respect to these six material topics is taken account in respect of each investment. The six material topics are: (1) Diversity, Equity & Inclusion; (2) Cybersecurity; (3) Data protection; (4) Climate change; (5) Anti-trust; and (6) Business Ethics and Culture.
Relevant Sustainability Metrics
A full list of sustainability-related metrics which Hg Pooled collects with respect to HgT's portfolio can be found in the Hg's Sustainability Report, but the key metrics which reflect HgTs portfolio's performance against the "essential" elements of HgTs sustainability are, as of December 2022 and December 2023, covering 41 portfolio companies:
| Indicator | 2022 Performance | 2023 Performance |
| ESG Strategy in Place | 49% | 59% |
| ESG Board Accountability | 51% | 93% |
| Anti-Bribery and Corruption Policy in Place | 93% | 98% |
| Anti-Discrimination Policy in Place | 95% | 100% |
| Competition Law Considered in Compliance Structure | 66% | 88% |
| Code of Conduct in Place | 88% | 98% |
| Data Privacy Policy in Place | 100% | 93% |
| Health & Safety Policy in Place | 93% | 95% |
| Risk Register Procedures in Place | 85% | 88% |
Related Information
The Manager can be contacted at +44 (0)20 7089 7888 and its website can be found at www.hgcapital.com. The full investment policy, including relevant non-sustainability related information, is set out in HgTs Annual Report and Accounts, and further details regarding HgTs sustainability approach can be found in the Sustainable Investment Report available at: www.hgcapitaltrust.com.