Each investment recommendation contains consistent and rigorous analytical information combined with a tailored evaluation approach. Standardised ESG check-lists and templates (including climate related risks and opportunities) are used to ensure consistency, quality and good risk management at each stage of an investment appraisal. The investment framework has been designed to fully leverage the Adviser's proactive sourcing, alpha-driven investment selection, operational capabilities and strong regional and sector networks.
The general partners of the Nordic Capital vehicle consider ESG issues including risk management and compliance and through the work of the Deal Risk Coordinator, based in Jersey the general partners are updated on progress of any deal specific ESG risks which need addressing in due diligence from a fund perspective. Each general partner board of the relevant Nordic Capital vehicle is responsible for managing its own risks and is responsible for ensuring that a consistent approach to ESG is applied to any given situation applicable to its respective Fund.
Nordic Capital has clear expectations that every portfolio company and its board of directors take sustainability matters into consideration and address them appropriately. A part of that responsibility is to identify risks and opportunities related to sustainability, not only related to environmental and climate related factors such as carbon footprint, water scarcity, chemical handling and disposals, but also factors including legal, regulatory, social, and ethical and community aspects.