SEPTEMBER 10 2024
Nordic Capital stands committed to investing responsibly, aiming for lasting success and value creation. Sustainability isn't just an aspect of the investment strategy here; it forms the core, fostering a beneficial societal impact and cultivating resilient companies. Business practices are conducted responsibly, with strategies that prioritise sustainability. In this view, we dive into some of the sustainability achievements during the past year.
Key Achievements
Nordic Capital's Milestones’
Since 2019, Nordic Capital has been a signatory to the UN-supported Principles for Responsible Investment (PRI), consistently ranking in the top quartile for ESG performance globally and achieving recognition among the top 10% performers in UN PRI reporting modules. Nordic Capital has introduced ESG-linked credit facilities for three funds, underlining our commitment to integrating sustainability into our business model. In 2023, Nordic Capital committed to climate reduction targets aligned with the Paris Agreement and the SBTi framework, crafting a decarbonization playbook for its portfolio companies. In July 2024, Nordic Capital’s emissions reduction targets received SBTi approval. Nordic Capital has also developed training programs, ethical guidelines, and policy frameworks to ensure the responsible integration of AI technologies. Furthermore, in both 2023 and in 2024 Nordic Capital has received notable ESG accolades, including being named “ESG Champion of the Year- Large Cap, by Real Deals. Additionally, in 2023, Nordic Capital was recognised as one of the Future 40 ESG Innovators by Real Deals.
Portfolio achievements
The combination of clear sustainability requirements with actionable tools and resources for sustainability integration resulted in 95% of our portfolio companies having a sustainability strategy in place by the end of 2023. Additionally, 27% of executive management members in Nordic Capitals portfolio companies were women, and 25% of external board members in portfolio companies were female, demonstrating our commitment to diversity and inclusion.
Empowering sustainable growth
Nordic Capital actively engage with its portfolio companies to promote ESG integration and sustainable performance. Nordic Capital’s efforts include building competencies, sharing best practices, and implementing rigorous monitoring and reporting processes. Since 2014, over 1,200 professionals, including board directors and executive management, have been trained in sustainability practices.
Commitment to transparency
Nordic Capital emphasises a data-driven approach to sustainability, aligning practices with the UN Sustainable Development Goals (SDGs) and focusing on measurable KPIs such as employment growth, climate impact reduction, and diversity and inclusion. We emphasise that companies should establish fundamental processes to enable sustainability integration across their organisations and apply a data-driven approach to enhance sustainability performance. In the end of 2023, 86% of portfolio companies had published a sustainability report.
Together, Nordic Capital drive transformative change, shaping a future where sustainable practices are integral to progress and prosperity.
