SFDR

Sustainability-related disclosures‍

Mandatory disclosures under Regulation (EU) 2019/2088 of the European Parliament and of the Council on sustainability-related disclosures in the financial services sector ("SFDR")

I. Sustainability risks

‍LEA Ventures GmbH ("LEA Ventures") considers sustainability risks as part of its investment decision-making process. Sustainability risks are environmental, social or governance events or conditions, the occurrence of which could have an actual or potential material adverse effect on the value of the investment.

LEA Ventures believes in the benefits of rigorous due diligence, and this includes sustainability risks. A thorough ESG review is therefore an essential part of LEA Ventures' target company analysis. The due diligence focuses on identifying sustainability risks that can have a material negative impact on investment performance, whether related to potential future direct costs or to reputational risks. To support the deal teams in their ESG reviews and to promote consistency, LEA Ventures has adopted the Invest Europe ESG Due Diligence Questionnaire.

The results of this assessment are taken into account when the investment decision is made. In addition, the funds managed by LEA Ventures have exclusion lists for potential investments which include typical ESG-related criteria. However, LEA Ventures remains free to refrain from investing, or to invest despite sustainability risks, in which case it can apply measures to reduce or mitigate those risks.

II. No consideration of adverse impacts of investment decisions on sustainability factors

‍LEA Ventures does not consider adverse impacts of its investment decisions on sustainability factors and therefore does not use the indicators listed in Annex I of the Regulatory Technical Standards (Delegated Regulation (EU) 2022/1288, "RTS") to identify and assess potential adverse impacts. Sustainability factors are environmental, social and employee matters, respect for human rights, and anti-corruption and anti-bribery matters.

The SFDR, Regulation (EU) 2020/852 ("Taxonomy") and the accompanying RTS are relatively new legislative acts. Considering the legal uncertainties related to their application, in particular with respect to the consideration of adverse impacts, and the administrative burden resulting from these uncertainties, LEA Ventures is not yet in a position to commit to this standard in light of its fiduciary duties to its investors.

Moreover, the funds managed by LEA Ventures (LEA Venturepartner GmbH & Co. geschlossene Investmentkommanditgesellschaft, LEA Venturepartner II GmbH & Co. geschlossene Investmentkommanditgesellschaft and LEA Venturepartner III GmbH & Co. geschlossene Investmentkommanditgesellschaft, the "Funds") only hold minority interests in their portfolio companies. Such minority interests are generally not sufficient to require the portfolio companies to collect and provide the relevant data. The Funds will, however, strive to encourage their portfolio companies to do so.

LEA Ventures will monitor developments around the SFDR and the Taxonomy. Once a practicable market and administrative practice has evolved and the consequences of committing to the consideration of principal adverse impacts are reasonably clear, LEA Ventures will re-evaluate whether to consider principal adverse impacts of its investment decisions.

III. Remuneration disclosures
Although LEA Ventures considers sustainability risks as part of its investment decision-making process, these risks are not integrated as explicit criteria in its remuneration policy. They are, however, part of the general performance measurement of the respective team members.