For Summa Equity to consider an investment, there needs to be a clear link between the company's business model and one or more of the UN SDGs. Problems highlighted by the SDGs give us guidance on which sectors and industries there may be opportunities for growth and value creation through solving relevant problems.
We carry out due diligence (DD) of potential investments in order to assess compliance with national and international regulations and to ensure we invest in companies with a commitment to improving their environmental and social standards which we see as a key foundation to becoming High Performing Organizations. Where appropriate, we develop corrective action plans to improve practices and agree on opportunities to add value and raise standards.
We believe it is important to establish a strong relationship with the company during the DD phase to support productive discussions and identify opportunities for improvement and value creation. The focus here is not just on written policies and frameworks, but also their actual impact on the organization, culture and business model. This approach enables us to ensure alignment between Summa Equity and the management of our partner companies. When this alignment is not possible, we walk away from an investment.