Nordic Capital investment professionals are well placed to address sustainability risks and opportunities with the support of a dedicated in-house Sustainability Team and external advisors. The in-house Sustainability Team ensures that Nordic Capital addresses sustainability risks and opportunities in a structured and efficient manner and promotes best practice in governance, social and environmental behaviour within Nordic Capital and our portfolio companies. This team is also responsible for developing training programmes and sustainability evaluation methods in order to measure our progress and report to our investors.
Potential investments must be assessed for financial, legal and sustainability risks and opportunities. We have therefore developed a robust method that our investment teams apply when performing risk and opportunity assessments during the due diligence phase. This enables Nordic Capital to address sustainability matters in a systematic and consistent manner and at the earliest stage.
The Nordic Capital toolbox includes a clear responsible investment checklist and supporting DDQs to address sustainability factors and risks in the pre-investment phase. This helps us to better understand the current and potential impacts that sustainability factors have on the investment's financial performance, operations and reputation. Nordic Capital includes a mandatory assessment of sustainability risk and opportunities in all final investment recommendation material that are presented to the GP Board.
Nordic Capital provides sector specific training for its investment teams and is also a member of the Sustainability Accounting Standards Board (SASB).
Nordic Capital believes that training and the sharing of best practice within Nordic Capital and its portfolio companies is critical and has therefore developed training programmes, tools, templates and guidelines on how to assess environmental, social and governance (ESG) factors during the investment and ownership process. The established training programme has been in place since 2014 and is continuously developed to address relevant policies, standards and frameworks.
It is mandatory for all Nordic Capital employees to participate in the “ESG I” training addressing Corporate Governance and Compliance including policies, implementation guidelines and risk assessments in the areas of anti-bribery, antirust, trade sanctions, data protection, information security, whistleblowing and ethical business frameworks.
To address material sustainability risks and opportunities in both the investment and ownership phases, Nordic Capital has developed a sector specific toolkit per focus sector. To ensure that the toolkits are utilised appropriately, we continuously train our investment professionals in how to apply the tools.