SFDR DISCLOSURES

Sustainability risk policy: considering the nature and limitations of the firm’s investment universe and the products on which it operates, sustainability risks and ESG factors cannot fully be taken into account in daily investment decisions. Nonetheless, the ocean transportation industry has long been deeply committed to reduce carbon emissions and its negative impact on the environment through successful and well-documented initiatives such as IMO 2020 or the recent inclusion of maritime emissions in the EU Emissions Trading System (ETS). CQuake Shipping Fund SLP, alongside other shipping companies, is actively involved in these discussions and may at times participate as panelist to improve the long-term industry’s environmental footprint. The company may also consider environmental-friendly shipping investment alternatives when available with the aim to achieve efficient utilization of both resources and assets in order to minimizes CO2 emissions and reduce to the minimum the adverse effects on the environment of the necessary transportation of goods.

Principal adverse impact: In 2018, global shipping emissions represented 1,076 million tons of CO2, and were responsible for around 2.9% of global emissions caused by human activities. Projections show that these emissions could increase by up to 130% of 2008 emissions by 2050. If the climate change impact of shipping activities grows as projected, it will undermine the objectives of the Paris Agreement: a global framework to avoid dangerous climate change by limiting global warming to well below 2°C and pursuing efforts to limit it to 1.5°C. At EU level, maritime transport represents 3 to 4% of the EU’s total CO2 emissions, or over 124 million tons of CO2 in 2021. In order to significantly reduce greenhouse gas (GHG) emissions from international shipping, effective global measures are desirable. In July 2023 the International Maritime Organization (IMO) made a step on this path committing to new targets for GHG emissions reductions and to develop and adopt in 2025 a basket of measure(s), delivering on these reduction targets. The next years to come will show which measures will be adopted and become applicable and whether they will commensurate with achieving these targets and the objectives of the Paris Agreement. The EU action to make sure maritime transport plays its part in achieving climate neutrality in Europe by 2050 is an essential step in incentivizing the necessary reductions. Therefore, although the industry has gone through considerable efforts to reduce its carbon footprint and continues to actively do so, CQuake Shipping Fund investors are aware their investment in the partnership may result in indirect negative ESG impacts. CQuake Shipping Fund always strongly encourages such investors to seek for ESG positive diversification products to complete their portfolios.