For CapMan Infra, ESG matters are always a part of the investment process; ESG matters are part of the investment analysis for each target, tools and checklists for identifying the need for more detailed DD are in place and most significant opportunities and/or risks need to be identified in the investment memorandum.

Certain types of assets are not considered for investment based on their environmental footprint, unless a concrete plan for changing the footprint is possible to implement during the holding period. Assets with positive ESG characteristics (e.g. low GHG emissions) are prioritised in investment screening.

During the holding period, the case teams monitor the performance of individual portfolio companies in more detail through the Board, and seeks to implement improvements in ESG matters. Any significant incidents, as well as general performance, are reported to fund investors.

As outlined in CapMan’s Code of Conduct, the staff is expected to act in line with company’s commitment to the principles of responsible investment (as stated in CapMan’s Sustainable Investment Policy) at every stage of investments – always aiming to be a value adding active owner who is dedicated to build successful and long-lasting businesses in a sustainable manner.

CapMan requires that all the funds’ portfolio companies comply with applicable laws, rules and regulations. In addition, each portfolio company draws up a programme to ensure that good corporate governance principles are followed. Requirements and expectations may vary with respect to other ESG aspects depending e.g. on sector, geography and business model of the portfolio company in question. CapMan takes immediate actions if any critical ESG issues arise concerning the portfolio companies during the ownership period.