eEquity is actively driving the ESG policy in all portfolio companies.
In order to build maximum long-term value creation, eEquity is convinced that it is of utmost importance to consider the environmental, social and governance implications of our investments and also influence our portfolio companies to act in a socially responsible manner.
eEquity is a member of the Swedish Private Equity and Venture Capital Association (“SVCA”), the industry body and public policy advocate for the private equity and venture capital industry in Sweden, and has committed to follow SVCA’s ethical guidelines. Further, it is eEquity’s policy to follow and support the UN Principles for Responsible Investment.
To reflect this eEquity has developed and adopted the following Environmental, Social and Governance (“ESG”) Policy. We make sure to take into account potential environmental and social issues throughout our investment horizon spanning from initial due diligence and investment decision, through the holding period, and our exit strategy.
Environmental
- Promote an appropriate level of environmental awareness and practices among portfolio companies including complying with current environmental law in order to minimize adverse effects. This includes but is not limited to:
1. Energy efficiency
2. Sound resource management
3. Reducing greenhouse gas emissions and pollution prevention - Supporting the value creation potential from developing portfolio companies environmentally sound
Social
- Comply with labour laws and encourage competitive employee remuneration, safe and healthy work spaces in conformance with local legislation
- Consistent with applicable law respect the rights of employees to decide whether or not to join a union and engage in collective bargaining
- Support elimination of child labour
- Avoid any kind of discrimination based on e.g. age, race, religion, sexual orientation or disability
- Comply with international conventions on human rights
Governance
- Implement policies among our portfolio companies for e.g. compensation, audit and risk management which align the interest of owners and management
- Seek to make ourselves accessible to all relevant stakeholders and engage with them either directly or through portfolio company representatives
- Avoiding corruption and other unethical business practices.
Further, eEquity endorse and support the investor reporting guidelines from the Institutional Limited Partners Association (“ILPA”), which are based on the three guiding principles of: - Alignment of interest between LPs ad GPs
- Governance in terms of team, investment strategy and fiduciary duty
- Transparency in terms of financial, risk management, operational, portfolio and transactional information regarding fund investments
Differentiated approach to responsible investments
eEquity aim to identify potential ESG issues and take into consideration into our due diligence, decision-making and management practices in various ways through three different lenses depending on the particular investment opportunity.
- Integrated: Most broadly eEquity aim to integrate ESG considerations into both the diligence and ownership stages of an investment, as an understanding of the material issues helps us make the most informed decisions.
- Targeted: eEquity aim to identify investments where improving performance on critical ESG issues helps create value or mitigate risk. We provide resources and tools to manage these issues and measure companies’ progress through metrics and benchmarks.
- Solution focused: In these investments, a company’s core product or service provides a solution to an ESG-related challenge. Selected solution focused investments include:
- Swap.com – online consignment store which promotes re-use of old clothes.
- Karma – food rescue app devoted to eliminate food waste in restaurants and grocery stores.
eEquity engages in impact investing
Examples of eEquity portfolio companies engaging in ESG:
Karma is a rescue food app reducing the amount of food that is not consumed.
NA-KD is a fast fashion retailer that is launching NA-KD Circle allowing all customers to buy pre-owned NA-KD clothing.
CO2 neutral by compensating for all CO2 pollution from transports.
Swap is a leading company in the US for inexpensive pre-owned retailing (online thrift store)
Footway is CO2 neutral by compensating for all CO2 pollution from transports
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