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.
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.
Also, eEquity has made a commitment to participate in the UN Global Compact where eEquity undertakes to promote and integrate 10 principles within human rights, labour, environment and anti-corruption. Further, 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.
EU Sustainable Finance Disclosure Regulation (SFDR) is a set of EU rules which aim to increase transparency on sustainability among financial institutions and market participants. The funds eEquity IV and eEquity Growth are committed to adhering to SFDR and sustainability matters are integrated in all aspects of the investment process and active ownership model. More information can be found for each fund below:
Sustainability – eEquity Growth V
Sustainable Investment Policy
Sustainability eEquity Growth V
The EU Sustainable Finance Disclosure Regulation (SFDR) ((EU) 2019/2088) aims to make sustainability factors better understood and more comparable.
eEquity 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 integrates sustainability risks, as referred to in Article 3 of the Disclosure Regulation, throughout the investment process in accordance with eEquity’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’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 remuneration model is described in eEquity’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 will continue to aspire to consider sustainability matters in the investment process, eEquity does not currently consider principal adverse impacts of investment decisions as per Article 4 of the SFDR. eEquity 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 will evaluate and update our position accordingly when the regulatory technical standards outlining the content and definition of such impacts have been finalized.
