Meny
We make sure to take into account potential environmental, social and governance factors throughout our investment horizon spanning from sourcing, due diligence and investment decision, through the holding period, and our exit strategy.
eEquity Growth V is a signatory of the UN Principles for Responsible Investment, PRI, an initiative to promote responsible investments. Also, eEquity Growth V has made a commitment to participate in the UN Global Compact. eEquity Growth V undertakes to promote and integrate 10 principles within human rights, labour, environment and anti-corruption. Further, eEquity Growth V 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.
Sustainable Investment Policy
Sustainability eEquity Growth V
Article 10: Transparency of the promotion of environmental or social characteristics and of sustainable investments on websites
Summary
eEquity Growth V is a private sector fund focused on investing at the intersection of technology and retail companies, including DTC, B2B, and software SaaS companies. Based in Stockholm, Sweden, the fund primarily targets companies in Northern Europe. In alignment with Article 8 of the EU Regulation 2088/2019 – SFDR, the fund promotes environmental and social characteristics. eEquity Growth V integrates environmental and social considerations into all stages of its investment process, utilizing an internal ESG framework with specific criteria and supporting tools. The process includes: i) ESG Due Diligence, ii) ESG Consideration in Investment Decisions, and iii) ESG Monitoring and Reporting.
The following sections outline the environmental and social characteristics the fund promotes and the overall ESG framework in place.
No Sustainable Investment Objective
eEquity Growth V promotes environmental and social characteristics as defined in Article 8 of the SFDR but does not pursue sustainable investment objectives, as per Article 2 (17) of the SFDR.
Environmental or Social Characteristics of the Fund
The fund adopts a comprehensive approach that recognizes a broad spectrum of environmental and social characteristics. It incorporates these factors into its investment activities by excluding investments that may cause negative impacts (through exclusion criteria) and by developing or reviewing an ESG strategy and action plan for each investment.
eEquity Growth V is a signatory of the UN Principles for Responsible Investment (PRI), an initiative that promotes responsible investment practices.
Investment Strategy
eEquity Growth V aims to generate attractive, risk-adjusted financial returns for its investors while contributing positively to society through the incorporation of ESG criteria throughout the investment process and lifecycle. A focus is thereby placed on environmental and social aspects, particularly climate change and diversity. ESG factors are considered across the following three phases: i) ESG Due Diligence, ii) ESG Consideration in Investment Decision, and iii) ESG Monitoring and Reporting.
Proportion of Investments
In accordance with its investment strategy and restrictions, 100% of the fund’s investments will align with the environmental or social characteristics it promotes. The fund does not intend to make sustainable investments as defined in Article 2 (17) of the SFDR.
Monitoring of Environmental or Social Characteristics
eEquity Growth V monitors various environmental and social characteristics through specific indicators. Prior to investment, the following are monitored:
i. Compliance with the fund’s exclusion criteria
ii. Consideration of ESG factors in investment decisions
iii. If a portfolio company lacks an ESG strategy, the fund works together with the company to implement one.
The information collected during the ESG Due Diligence phase is used to track ESG risks and developments through annual ESG assessments during the investment phase. These assessments help the fund capture and analyze relevant ESG data.
Methodologies
The fund integrates ESG considerations throughout the three investment phases: i) ESG Due Diligence, ii) ESG Consideration in Investment Decision, and iii) ESG Monitoring and Reporting.
For details on the first two phases, see the “Due Diligence” section below. For details on the third phase, see “Monitoring of Environmental or Social Characteristics” above.
Data Sources and Processing
ESG data is primarily sourced from:
(i) ESG Due Diligence (including data from electronic data rooms, proprietary research, and interviews with portfolio company representatives),
(ii) Continuous monitoring and engagement with the portfolio companies.
During continuous monitoring, data is collected via various channels, including emails and automated processes, with the latter being the preferred method to reduce operational risk and unnecessary human intervention.
Limitations to Methodologies and Data
Although eEquity Growth V makes reasonable efforts to ensure the quality, reliability, and availability of data, some portfolio companies may face limitations in collecting relevant ESG data. Therefore, the fund cannot guarantee the completeness or accuracy of all data points. However, to achieve the environmental and social characteristics it promotes, the fund uses various data sources covering different aspects of these characteristics. If data availability or quality is insufficient, some data may be estimated.
Due Diligence
In the investment phase, eEquity Growth V first assesses the potential investment by screening it against the ESG exclusion criteria list.
ESG due diligence is performed on each investment opportunity, which forms an integral part of the analysis criteria of the Investment Committee and helps to define the investment through the analysis of the Target Company. The ESG due diligence is carried out by the fund or by an ESG Advisor.
If the investment progresses, ESG targets are set in collaboration with the portfolio company, with progress monitored at least annually.
Engagement Policies
eEquity Growth V engages with portfolio companies on ESG matters throughout the entire investment lifecycle. The fund works with portfolio companies to define an ESG action plan and fosters a collaborative dialogue to raise awareness about ESG factors within the management team. ESG progress is tracked and monitored at least once a year.
The EU Sustainable Finance Disclosure Regulation (SFDR) ((EU) 2019/2088) aims to make sustainability factors better understood and more comparable.
eEquity Growth V undertakes to comply with the regulation and to be transparent on sustainability matters in our investment process and in our active ownership.
Sustainability Risks refers to an environmental, social or governance event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the investment.
eEquity Growth V integrates sustainability risks, as referred to in Article 3 of the Disclosure Regulation, throughout the investment process in accordance with eEquity Growth V’s Investment Policy. A sustainability risk assessment is performed as part of the Due Diligence processes in order to identify any material sustainability risks in relation to the investment. Following the Due Diligence, relevant mitigative actions are identified alongside other strategic measures, and integrated into an investment specific roadmap. All identified risks must be approved as acceptable and in accordance with eEquity Growth V’s general risk policies before an investment opportunity is pursued. Sustainability risks are monitored and continuously evaluated on a regular basis as part of the ongoing follow-up of the investment roadmap.
eEquity Growth V remuneration model is described in eEquity Growth V’s Remuneration Policy and includes both fixed and variable remuneration. The variable remuneration is based on a performance assessment, in which both financial and non-financial criteria are considered. The criteria include a number of targets and KPI’s, among them sustainability related ones, and considers the employee’s compliance with internal rules and certain outlined criteria for screening, sourcing and investment decisions with regards to sustainability related matters and sustainability risks.
Principle Adverse Impacts refers to negative effects of the investment decision on sustainability factors.
While eEquity Growth V will continue to aspire to consider sustainability matters in the investment process, eEquity Growth V does not currently consider principal adverse impacts of investment decisions as per Article 4 of the SFDR. eEquity Growth V has chosen not to do so for the present time, as the requirements on the content, methodology and presentation of such impacts remain to be finalized. eEquity Growth V will evaluate and update our position accordingly when the regulatory technical standards outlining the content and definition of such impacts have been finalized.
The EU Taxonomy sets out a “do no significant harm” principle by which Taxonomy-aligned investments should not significantly harm the EU Taxonomy objectives and is accomplished by specific EU criteria.
The “do no significant harm” principle applies only to those investments underlying the financial product that take into account the EU criteria for environmentally sustainable economic activities. The investments underlying the remaining portion of this financial product do not take into account the EU criteria for environmentally sustainable economic activities.
Any other sustainable investments must also not significantly harm any environmental or social objectives.
Principle Adverse Impacts refers to negative effects of the investment decision on sustainability factors.
While eEquity Growth V will continue to aspire to consider sustainability matters in the investment process, eEquity Growth V does not currently consider principal adverse impacts of investment decisions as per Article 4 of the SFDR. eEquity Growth V has chosen not to do so for the present time, as the requirements on the content, methodology and presentation of such impacts remain to be finalized. eEquity Growth V will evaluate and update our position accordingly when the regulatory technical standards outlining the content and definition of such impacts have been finalized.
