Nordic Capital's emissions reduction targets receive SBTi approval

Nordic Capital has further advanced its climate agenda with the announcement that its greenhouse gas emissions (GHG) reduction targets have been approved by the Science Based Target initiative (SBTi), aligning with the 1.5° C pathway outlined in the Paris Agreement. Nordic Capital views decarbonisation as an important way to create value in the businesses it backs and, as a leading investor and business owner, is committed to fostering meaningful climate action, including an urgent transition to a low-carbon economy.

Nordic Capital’s established GHG emissions reduction targets cover both its own operations and those of its portfolio companies. Across all local offices (spanning both fund and advisory business), Nordic Capital commits to maintain zero absolute scope 1 GHG emissions and to reduce absolute scope 2 GHG emissions 42% by 2030. At portfolio level, Nordic Capital commits to 33.4% of its eligible portfolio setting SBTi validated targets by 2028, and 100% by 2040.

As an active and engaged owner and investor, Nordic Capital leverages its deep sector expertise to maximise the impact of its decarbonisation initiatives, accelerating the climate action of its portfolio companies. It believes that the provision of support and tools to its portfolio companies will be instrumental in facilitating the reduction of their GHG emissions. To this end, Nordic Capital has developed a decarbonisation playbook to support portfolio companies on their SBTi journey. Tailored for practical application, it integrates insights on sub-sector level and key learnings from current portfolio companies that have already established science-based targets. To date, 8 percent of Nordic Capital’s assets under management (AUM) have committed to SBTi targets. The journey to map emissions started already in 2019, and since then Nordic Capital has further refined the GHG baseline in its investments and defined emission reduction activities. In line with its strong climate commitment, Nordic Capital has initiated the next phase of its decarbonisation plan and is now looking to engage in the following actions to achieve set targets:

• making science-based target portfolio coverage alignment a priority and providing portfolio company support in driving the science-based target agenda through committed resources and capacity building.
• engaging with current and future portfolio companies to promote the
• development and validation of science-based targets by the SBTi and support them in developing plans to meet such targets.
• engaging with current and future portfolio companies to identify decarbonisation opportunities that would be required to align with a 1.5°C reduction pathway.
• continuing its engagement with other initiatives to promote climate resilience and adoption across the wider private equity industry.

Elin Ljung, Head of Communications and Sustainability at Nordic Capital Advisors, commented:

"We are pleased that the SBTi has approved Nordic Capital’s near-term science-based emissions reduction targets. These commitments are testament to Nordic Capital’s dedication to fostering sustainable growth and driving climate action, both of which are integral to its long-term strategy as an engaged business owner and leading investor”.

To learn more about Nordic Capital's climate agenda, read more here: Climate Action | Nordic Capital 

Media contacts:

Nordic Capital
Katarina Janerud
Communications Manager, Nordic Capital Advisors
+46 8 440 50 50
katarina.janerud@nordiccapital.com

About Nordic Capital
Nordic Capital is a leading sector-specialist private equity investor with a resolute commitment to creating stronger, sustainable businesses through operational improvement and transformative growth. Nordic Capital focuses on selected regions and sectors where it has deep experience and a long history. Focus sectors are Healthcare, Technology & Payments, Financial Services, and Services & Industrial Tech. Key regions are Europe and globally for Healthcare and Technology & Payments investments. Since inception in 1989, Nordic Capital has invested EUR 25 billion in over 145 investments. The most recent entities are Nordic Capital XI with EUR 9.0 billion in committed capital and Nordic Capital Evolution with EUR 1.2 billion in committed capital, principally provided by international institutional investors such as pension funds. Nordic Capital Advisors have local offices in Sweden, the UK, the US, Germany, Denmark, Finland, Norway, and South Korea. www.nordiccapital.com.

“Nordic Capital” refers to, depending on the context, any, or all, Nordic Capital branded entities, vehicles, structures, and associated entities. The general partners and/or delegated portfolio managers of Nordic Capital’s entities and vehicles are advised by several non-discretionary sub-advisory entities, any or all of which are referred to as “Nordic Capital Advisors”.

About the SBTi
The Science Based Targets initiative (SBTi) is a corporate climate action organization that enables companies and financial institutions worldwide to play their part in combating the climate crisis. They develop standards, tools and guidance which allow companies to set greenhouse gas (GHG) emissions reductions targets in line with what is needed to keep global heating below catastrophic levels and reach net-zero by 2050 at latest. The SBTi is incorporated as a charity, with a subsidiary which will host our target validation services. Its partners are CDP, the United Nations Global Compact, the We Mean Business Coalition, the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF). https://sciencebasedtargets.org/