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Nordic Capital

PRI reporting framework 2020

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ESG issues in asset allocation

SG 13. ESG issues in strategic asset allocation

13.1. Indicate whether the organisation carries out scenario analysis and/or modelling, and if it does, provide a description of the scenario analysis (by asset class, sector, strategic asset allocation, etc.).

13.3. Additional information. [OPTIONAL]

ESG analysis, including climate related risks and opportunities, is performed on a case by case basis and in accordance to our responsible investment framework. This includes sector specific topics deemed relevant to the specific investment. Our investment focus covers the Nordic region, selected Northern European sectors and the Global healthcare market. Sustainability factors are fully integrated into all stages of our investment and ownership process from evaluation through to exit. At an early stage - in the sourcing and analysis phase, we are considering potential investments from a broad range of ESG factors, such as the SDGs, industry/sector, geographical spread in markets and operations, etc.


SG 13 CC.


SG 14. Long term investment risks and opportunity

14.1. Some investment risks and opportunities arise as a result of long term trends. Indicate which of the following are considered.

14.2. Indicate which of the following activities you have undertaken to respond to climate change risk and opportunity

14.3. Indicate which of the following tools the organisation uses to manage climate-related risks and opportunities.

14.5. Additional information [Optional]


SG 14 CC.

14.6 CC. Provide further details on the key metric(s) used to assess climate-related risks and opportunities.

Metric Type
Coverage
Purpose
Metric Unit
Metric Methodology
Carbon footprint (scope 1 and 2)
          
        
          
        
          tCO2
        
Portfolio carbon footprint
          
        
          
        
          tCO2
        
Total carbon emissions
          Nordic Capital believes that a company that is aware of its impact on the environment is better able to manage associated risks and is more likely to have a long-term sustainable business model in place
        
          
        
          tCO2
        
Carbon intensity
          
        
          
        
          AuM for fund 
Sales in company
        
Exposure to carbon-related assets
          This holding (0,7% of total AuM) is exposed to the emission intensive fossil fuel market.
        
          0,7%
        
          Of total AuM
        

14.8 CC. Indicate whether climate-related risks are integrated into overall risk management and explain the risk management processes used for identifying, assessing and managing climate-related risks.

Please describe

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.


SG 15. Allocation of assets to environmental and social themed areas

15.1. Indicate if your organisation allocates assets to, or manages, funds based on specific environmental and social themed areas.

15.4. Please attach any supporting information you wish to include. [OPTIONAL]



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