Disclosures

For Investors in Japan:

With respect to Quona Accion Inclusion Fund IV SCSp to be offered in Japan, Quona Fund IV GP S.à r.l. will provide to any member of the Japanese public a copy of such documents as are required to be made publicly available pursuant to Article 63 of the Financial Instruments and Exchange Act of Japan. Please contact compliance@quona.com to request such documents.

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Article 3

Quona Accion Inclusion Fund IV Sustainability Risk Integration Policy

  1. Introduction

Quona Capital Management LLC (“Quona”) is dedicated to fostering financial inclusion and supporting innovative solutions that serve underserved communities. In alignment with our mission and in compliance with Article 3 of the Sustainable Finance Disclosure Regulation (SFDR) (EU) 2019/2088, this policy outlines how Quona Accion Inclusion Fund IV SCSp (the “Fund”) integrates sustainability risks into its investment decision-making process.​

  1. Definition of Sustainability Risks

Sustainability risks refer to environmental, social, or governance (ESG) events or conditions that, if they occur, could cause an actual or potential material negative impact on the value of the investment.​

  1. Integration of Sustainability Risks in Investment Decisions

Quona incorporates sustainability risks into the Fund’s investment process through the following measures:​

  • Due Diligence: Prior to making investment decisions, we conduct comprehensive assessments to identify potential sustainability risks associated with prospective investments. This process evaluates factors such as environmental impact, social practices, and governance structures.​
  • Risk Monitoring: Post-investment, we monitor portfolio companies for emerging sustainability risks. This ongoing assessment ensures that any new risks are identified and managed promptly.​
  • Engagement and Support: We actively engage with portfolio companies to promote the adoption of sustainable practices. By providing guidance and resources, we aim to mitigate identified sustainability risks and enhance long-term value creation.​
  1. Governance and Accountability

The Investment Committee of the Fund’s General Partner oversees the integration of sustainability risks into the investment process. This committee is responsible for ensuring that sustainability risk assessments are embedded in investment evaluations and decision-making processes. The Fund General Partner is responsible for providing ongoing training to investment professionals to enhance their understanding of ESG factors and sustainability risks, and for maintaining transparency with stakeholders by reporting on how sustainability risks are managed within the Fund.​

  1. Transparency and Disclosure

Quona is committed to transparency regarding the integration of sustainability risks. Information about our sustainability risk management practices is publicly available on our website and is included in the Fund’s periodic reports to investors.​

  1. Continuous Improvement

We recognize that the field of sustainable investing is continually evolving. Quona is committed to regularly reviewing and enhancing our sustainability risk integration practices to align with emerging practices and regulatory developments.​

By systematically integrating sustainability risks into the investment process, Quona Accion Inclusion Fund IV SCSp aims to promote sustainable development and deliver long-term value to our investors and the communities we serve.

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Article 4

Principal Adverse Impacts (PAI) Statement – Quona Capital Management LLC

Quona Capital Management LLC acknowledges its responsibility under Article 4 of the SFDR to consider the principal adverse impacts of its investment decisions on sustainability factors. As a venture fund focused on fintech in emerging markets, Quona integrates environmental, social, and governance factors in its investment process which focused on companies which serve underserved populations and promote financial inclusion.

In line with the requirements set out in Annex I of the SFDR Level 2 Regulation, Quona assesses adverse impacts related to greenhouse gas emissions, biodiversity, water, waste, and social factors like inequality and diversity. This assessment is a part of a strategy which aims to invest in companies that contribute positively to financial inclusion and economic opportunity in emerging markets.

Our PAI due diligence includes data collection and monitoring of ESG indicators such as carbon footprint, gender equality, and governance practices in portfolio companies. This data allows us to continuously improve our impact management and contribute to the broader sustainable development goals within our target regions.

For more information on Quona’s strategy, visit Quona Capital.

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Article 5

Quona Capital Remuneration Policy Statement

Quona Capital (“Quona”) is committed to promoting sustainable investment practices and recognizes the importance of integrating sustainability risks into our operations. In compliance with Article 5 of the Sustainable Finance Disclosure Regulation (SFDR) (EU) 2019/2088, this statement outlines how our remuneration policies are consistent with the integration of sustainability risks.​

This policy applies to all employees, including senior management, risk takers, control functions, and any employee receiving total remuneration that falls within the same remuneration bracket as senior management and risk takers.​

Remuneration Structure

Quona’s remuneration framework comprises fixed and variable components:​

  • Fixed Remuneration: Reflects the role’s responsibility, experience, and professional competency.​
  • Variable Remuneration: Based on individual, team, and company performance, considering both financial and non-financial criteria.

Integration of Sustainability Risks

To align remuneration with sustainable practices, we incorporate sustainability risk considerations into performance evaluations. Employees are assessed on their contribution to identifying, managing, and mitigating sustainability risks within their roles.​

  • Decision-Making: Variable remuneration decisions factor in adherence to sustainability risk management policies.​
  • Long-Term Focus: Our remuneration policies are designed to promote sound and effective risk management, discouraging excessive risk-taking that could adversely impact sustainability.​

The directors of Quona Capital Management LLC oversee the implementation of this policy, ensuring alignment with Quona’s commitment to integrating sustainability risks. The directors meet regularly and adapt Quona’s polices as advisable to reflect evolving regulatory requirements and industry best practices.​

Disclosure

This remuneration policy is publicly available on Quona’s website, ensuring transparency in how we integrate sustainability risks into our remuneration practices.​

Continuous Improvement

Quona is dedicated to continuous improvement in sustainability practices. We provide ongoing training to our employees to enhance their understanding and management of sustainability risks.​

By embedding sustainability risk considerations into our remuneration policy, Quona reinforces its commitment to responsible investment and sustainable growth.

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Article 10

Quona Accion Inclusion Fund IV: SFDR Website Disclosure

  1. Summary

Quona Accion Inclusion Fund IV (“the Fund”) is classified as an Article 9 fund under the Sustainable Finance Disclosure Regulation (SFDR) (EU 2019/2088), meaning it has sustainable investment as its objective. The Fund seeks to generate positive social impact by investing in businesses that expand financial inclusion, improve access to essential financial services, and contribute to economic empowerment in underserved communities.

The Fund ensures that all investments qualify as sustainable by adhering to strict environmental, social, and governance (ESG) criteria and avoiding activities that cause significant harm to sustainability objectives.

  1. Sustainable Investment Objective

The Fund’s primary sustainable investment objective is to advance financial inclusion and economic empowerment, particularly in emerging markets. By investing in companies that provide affordable and responsible financial services, the Fund contributes to reducing inequalities and promoting inclusive economic growth in alignment with the UN Sustainable Development Goals (SDGs), particularly SDG 1 (No Poverty), SDG 8 (Decent Work and Economic Growth), and SDG 10 (Reduced Inequalities).

The Fund also considers environmental factors, ensuring that portfolio companies operate responsibly and contribute to climate resilience.

  1. Investment Strategy

The Fund integrates sustainability at every stage of the investment process:

  • Screening and Selection: Potential investments must meet strict sustainability criteria, demonstrating a clear contribution to financial inclusion. Investments are screened to exclude businesses with activities that could cause significant harm to ESG objectives.
  • Due Diligence: A comprehensive risk assessment is conducted on all prospective investments, evaluating their impact on financial inclusion, social responsibility, and environmental sustainability.
  • Active Ownership & Engagement: The Fund engages with portfolio companies to enhance their performance, promote responsible business practices, and improve financial resilience in underserved communities.
  • Impact Measurement: The Fund continuously monitors its impact, ensuring that all investments contribute meaningfully to the Fund’s sustainability objectives.
  1. Proportion of Investments
  • 100% of the Fund’s investments qualify as sustainable investments.
  • The Fund does not allocate capital to investments that do not contribute to a sustainable objective.
  • A small proportion may be held in cash or cash equivalents for liquidity purposes, but these holdings do not detract from the Fund’s sustainability objectives.
  1. Monitoring of Sustainable Investment Objectives

The Fund tracks progress toward its sustainability objectives through:

  • Key Impact Indicators: Metrics such as the number of financially underserved individuals gaining access to services, financial literacy improvements, job creation, and gender inclusion in financial services.
  • Monitoring Framework: Regular data collection from portfolio companies to ensure compliance with ESG policies and sustainability objectives.
  • Ongoing Engagement: Encouraging portfolio companies to enhance their ESG performance and align with best practices.
  1. Methodologies for Measuring Impact

To assess and measure sustainable outcomes, the Fund employs:

  • Impact Measurement Frameworks: The Fund follows industry standards, including Operating Principles for Impact Management and the Global Impact Investing Network (GIIN) IRIS+ metrics.
  • Qualitative and Quantitative Analysis: Combining financial and social performance metrics to assess the long-term impact of investments.
  • Regular Reporting: Portfolio companies report on their sustainability performance, which is aggregated into Fund-level impact reports.
  1. Data Sources and Processing

The Fund collects sustainability-related data directly from portfolio companies through standardized reporting frameworks. From time to time, third-party ratings and impact assessments are used to supplement and validate reported data.

  1. Limitations to Methodologies and Data
  • Data Availability: Some companies in emerging markets may have limited ESG reporting capabilities, which the Fund addresses over time through capacity-building efforts.
  • Measurement Challenges: Certain social impacts, such as long-term financial stability, require qualitative assessments alongside quantitative metrics.
  • Mitigation Measures: The Fund applies conservative assumptions and continuously refines its impact measurement methodologies to ensure accuracy.
  1. Due Diligence

The Fund employs a robust due diligence process including:

  • Exclusion Screening: Avoiding investments in companies that engage in activities that could cause significant harm to sustainability objectives.
  • Sustainability Risk Assessment: Evaluating potential sustainability risks and ensuring that investments contribute positively to financial inclusion.
  • Post-Investment Monitoring: Conducting regular reviews and tracking progress on sustainability KPIs.
  1. Engagement Policies

The Fund takes an active ownership approach by assisting portfolio companies from time to time as advisable in strengthening their sustainability practices. In addition, Quona will have regular interactions with management teams to encourage improvements in identified areas.  If a portfolio company falls short in material sustainability matters, the Fund will take measures to address deficiencies, including engagement or, if necessary, divestment.

  1. Designated Reference Benchmark

The Fund does not currently track a specific sustainability index as a reference benchmark. Instead, it assesses the attainment of its sustainable investment objective using its impact measurement methodologies and ESG performance indicators.

By ensuring that 100% of its investments contribute to sustainability objectives, Quona Accion Inclusion Fund IV aligns with Article 9 of SFDR and maintains a commitment to generating measurable positive social and financial outcomes.