At Nordic Capital, we have long recognised the importance of driving transformative sustainable change – both to progress the value creation plans of our portfolio companies and to make a positive contribution to the society at large.
Nordic Capital actively engages with its portfolio companies during the ownership stage to promote the importance of sustainability, drive sustainable performance and share best practice. It sets out clear expectations for portfolio companies, ensuring that sustainability is addressed appropriately at boardroom level and throughout the organisation. Nordic Capital’s Sustainability Team provides portfolio companies with ongoing support to help them strengthen their sustainability agendas and develop appropriate processes in order to mitigate key sustainability risks and realise potential opportunities.
These efforts to reduce risk, cost and adverse environmental and social impacts in turn bring about significant long term operational, commercial and reputational benefits.
Approach to Sustainable business practice
- We are a signatory to the United Nations-supported Principles for Responsible Investment Initiative (PRI) and are committed to drive progress towards the UN Sustainable Development Goals (SDGs). The portfolio companies are increasingly aligning with these goals and in implementing them, they are able to play a part in establishing a more sustainable eco system.
- We seek to equip the portfolio companies by providing training, tools and resources to help them embed material sustainability factors into their business agendas and value creation plans. To date, Nordic Capital has trained more than 530 investments professionals, board members and key management executives in sustainability.
- Nordic Capital use a sustainability software platform to monitor, track and report on the environmental, social and governance impact of each portfolio company. The review covers a broad range of topics such as diversity, anti-corruption, energy efficiency, supply management and cyber security, providing significant visibility and facilitating future improvement.
Sustainability in action
Nordic Capital-backed Nordnet, an online bank for investments, savings and loans operating in the Nordic countries, has developed a clear sustainability agenda and successfully embedded societal and environmental values into its culture and business activities.
Encouraging sustainable savings Nordnet has made it as easy as possible for its customers to identify sustainable investments. By developing its digital platform promoting sustainability, customers have been able to increasingly allocate capital to more sustainable savings. By the end of 2019, Nordnet’s customers had allocated SEK 28.9 bn (SEK 15.9bn in 2018) in sustainable savings..
Nordnet is committed to driving and promoting equality and diversity in the workplace and this is reflected in its wider support of minority groups such as women, who are still underrepresented in finance and technology. With a structured approach and clear targets to increase female representation, Nordnet reported 38% of leadership positions being occupied by females by year-end 2019.
As a climate-neutral bank Nordnet strives to make minimal negative impact on the environment. To reduce its own direct impact on the environment, Nordnet powers its offices with renewable energy, minimises the use of paper and reduces its carbon footprint. In 2019, Nordnet’s total greenhouse gas emissions amounted to 237 tonnes of CO2e (254 tonnes in 2018), which is a decrease of 7% compared with 2018. To become a climate neutral bank, Nordnet compensates for its greenhouse gas emissions.