Vaekstfonden’s financing activities are centered on small and medium-sized companies in Denmark.
It is important to Vaekstfonden that the companies and funds we invest in take a stand on ESG conditions relevant to their individual activities. There are a big difference between financing single companies, venture funds with primarily a startup portfolio and PE buyout funds. The approach to ESG can vary a lot, so we have to be able to meet the funds or companies at their level and have a dialogue about specific future goals for their progress with ESG conditions.
Hence, our approach to ESG as an investor is based on dialogue, information, and collaboration.
We take the following steps:
- We include inquiry about social responsibility in the due diligence process, before deciding whether to invest or not.
- It is a requirement that the companies and funds, which we co-finance, commit to a CSR policy based on the UN Guiding Principles and the UN Global Compact.
- In the companies where we are direct investors and where we are board members, our procedural rules require that CSR must be discussed at least once annually at the highest management level. Our management procedures also require that the subsequent board meeting must deal with severe risks of negative impact on the sustainable development that the companies in question may cause or be involved in.
Should a company or a fund in our portfolio not meet the requirements for socially responsible behavior, we will investigate the case and use our experience and, if necessary, our influence to ensure that corrective measures are taken. Our approach to such matters is constructive dialogue, and we will help find a solution.