THIS ANNOUNCEMENT IS NOT AN OFFER FOR SALE OR SUBSCRIPTION OR SOLICITATION TO PURCHASE SHARES IN ANY JURISDICTION.
16 November 2022
HydrogenOne Capital Growth plc SFDR Article 9 Fund and PRI signatory
HydrogenOne Capital Growth plc ("HydrogenOne" or the "Company"), the first London-listed fund investing in clean hydrogen for a positive environmental impact, is pleased to announce that it is now classified as an Article 9 Fund under the EU Sustainable Finance Disclosure Regulation ("SFDR") and EU Taxonomy Regulation ("EU Taxonomy").
SFDR Article 9 Fund and EU Taxonomy
The Article 9 classification means that the Company has a sustainable investment objective. Through investing, directly or indirectly, in a diversified portfolio of hydrogen and complementary hydrogen focused assets, HydrogenOne contributes to climate change mitigation and integrates core ESG principles into its decision making and ownership process. As part of the new classification, the Company will be reporting greenhouse gas emissions and avoided greenhouse gas emissions on an annual basis in its annual financial reports.
The economic activity of each private investment of the Company has been mapped to the EU Taxonomy and assessed against the relevant do no significant harm and minimum safeguards criteria. The Company's private portfolio is 75% aligned with the EU Taxonomy and meets the following criteria:
· Positively contributes to climate change mitigation, monitored through greenhouse gas emissions and avoided greenhouse gas emissions;
· "Do No Significant Harm" to any of the environmental objectives in the EU Taxonomy and the Company's sustainable investment objective. In making this assessment the material adverse indicators in Annex I of the Regulatory Technical Standards to the Sustainable Finance Disclosure Regulation have been assessed; and
· Complies with minimum safeguards requirements, which reference the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights.
Some investments may be transitioning from other activities to focus on hydrogen which can result in some economic activity not being EU taxonomy-aligned. All non-aligned activity (i.e. 25% activities at investee companies that don't align to the EU Taxonomy) has also been assessed and does no significant harm to the objectives of the EU Taxonomy and the sustainable investment objective. It is expected that the non-aligned activity of the current portfolio will reduce as a proportion of overall activity as the investees pursue the hydrogen business lines.
The Company will report on key metrics in the 31 December 2022 annual report ahead of the regulatory requirement for periodic reporting coming into force from 1 January 2023. As part of the current requirements, the Company has published disclosures which outline how the Company aligns with the regulation and Article 9 classification, which can be accessed on the Company's website:
· Annex III - pre-contractual disclosure:
· Chapter IV - website disclosure:
PRI signatory
The Company is also pleased to report that as part of its commitment to sustainable investing, it has signed the United Nations-supported Principles for Responsible Investment ("PRI"). PRI is recognised as the leading global network for investors who are committed to integrating ESG considerations into their investment practices and ownership policies. During the year, the Company will focus on the documentation to satisfy the annual PRI reporting requirements.
Chairman of HydrogenOne, Simon Hogan, commented:
"Our commitment to investing in clean hydrogen for a positive environmental impact is at the core of everything we do at HydrogenOne. Therefore, we are delighted to now be classified as an Article 9 Fund, the highest classification under the SFDR, and to become a signatory of the PRI. In just over a year, we have seen the conversation around hydrogen's potential for fuelling the global energy transition jump to the top of the climate and political agenda. With our new certifications and signatories, we will push forward with our sustainable investment objectives as we continue to deploy capital in the over £500 million of opportunities we have identified."
Chief Executive Officer at the PRI, David Atkin, commented:
"We're pleased to welcome HydrogenOne as a signatory to the PRI. Now, more than ever, it is vital for responsible investors to come together to work towards common goals, for the benefit of the planet and our society. We look forward to working alongside HydrogenOne to realise these goals."
FCA Sustainability Disclosure Requirements (SDR) and investment labels
The Company notes the FCA issued a consultation on their SDR rules in October 2022. These rules provide three labels for investment funds: Sustainable Focus, Sustainable Improvers and Sustainable Impact. The Company is currently reviewing the consultation and will consider the appropriate action to take when the rules are finalised (expected H1 2023).
The Company's LEI is 213800PMTT98U879SF45.
For further information, please visit www.hydrogenonecapitalgrowthplc.com or contact:
| HydrogenOne Capital LLP - Investment Adviser | +44 20 3830 8231 |
| Dr. JJ Traynor/Richard Hulf Eva Bezruchko | |
|
Panmure Gordon - Corporate Broker and Financial Adviser | |
| Tom Scrivens Alex Collins
| +44 20 7886 2500
|
| FTI Consulting - Media Enquiries Matthew O'Keeffe Cally Billimore | +44 20 3727 1725 +44 78 1492 1439 hygen@fticonsulting.com |
About HydrogenOne:
HydrogenOne is the first London-listed hydrogen fund investing in clean hydrogen for a positive environmental impact. The Company was launched in 2021 with an investment objective to deliver an attractive level of capital growth by investing in a diversified portfolio of hydrogen and complementary hydrogen focussed assets. INEOS Energy is a strategic investor in HydrogenOne. The Company is listed on the London Stock Exchange's main market (ticker code: HGEN). The Company is an Article 9 climate impact fund.
IMPORTANT NOTICE
This announcement does not constitute an offer to sell, or the solicitation of an offer to acquire or subscribe for, shares in the Company in any jurisdiction. The distribution of this announcement outside the UK may be restricted by law. No action has been taken by the Company that would permit possession of this announcement in any jurisdiction outside the UK where action for that purpose is required. Persons outside the UK who come into possession of this announcement should inform themselves about the distribution of this announcement in their particular jurisdiction.
This announcement contains (or may contain) certain forward-looking statements with respect to certain of the Company's plans and/or the plans of one or more of its investee companies and their respective current goals and expectations relating to their respective future financial condition and performance and which involve a number of risks and uncertainties. The Company cautions readers that no forward- looking statement is a guarantee of future performance and that actual results could differ materially from those contained in the forward- looking statements.
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