Beyond Compliance: Active ownership and expertise driving transformative sustainable growth

In an era marked by regulatory change and diverse expectations around responsible business, Nordic Capital’s approach to active ownership and deep expertise stands out as a driving force for transformative, sustainable growth. During a recent panel discussion at Nasdaq Stockholm, Elin Ljung, Operating Partner and Head of Sustainability, highlighted the risks of viewing sustainability reporting as a compliance exercise rather than as a strategic lever for long-term value creation.

Alongside Niclas During, Trill Impact, and Anette Andersson, SEB Asset Management, Elin Ljung, Nordic Capital Advisors, recently joined a high-level panel at the Stockholm Stock Exchange. The discussion, moderated by Johanna Orring, Nasdaq, explored the European Commission’s recent “Omnibus” proposal, its anticipated effects on corporate reporting and how the EU seeks to balance ambitious sustainability targets with global competitiveness.

During the discussion, Elin outlined Nordic Capital’s hands-on sustainability strategy, emphasising the proactive support for portfolio companies to navigate complex regulatory shifts and become more sustainable.

Active ownership: Partnership at the core
Drawing on her experience, Elin underscored the importance of moving beyond a narrow compliance mindset. While acknowledging the burden that reporting can put on smaller businesses, she advocated for uncovering the true business case for sustainability, demonstrating how robust integration drives long-term value and resilience for both companies and investors. To future-proof the portfolio, Elin explained how Nordic Capital equips its portfolio with tailored tools, training and access to leading experts, making it easier to both comply and embed sustainability into their core strategies. The goal is to ensure that growth and sustainability can both be drivers of success, rather than competing priorities.

Central to Nordic Capital’s approach is its hands-on, partnership-oriented ownership model. By collaborating closely with management teams, founders and co-owners, Nordic Capital co-creates and support the implementation of shared value creation plans, ensuring that each company benefits from expert support while retaining its autonomy.

Functional and subsector expertise: The engine of value creation
Nordic Capital’s systematic approach targets exciting sub-sectors, initiating focused initiatives to build sustainable businesses led by top management teams and board professionals.

The model leverages several core components:

• Operational Playbooks: Nordic Capital has developed operationally-focused sector playbooks, drawing on best practices and lessons learned and provides a structured framework for growth, efficiency and innovation.
• Expert Networks: Companies gain access to a broad network of internal and external experts, including industrial advisors and functional specialists. This community fosters best-practice sharing and rapid problem-solving.
• Subsector Focus: A deep understanding of subsector trends and drivers allows Nordic Capital to identify transformative angles and unlock value.
  
  

Sustainability training for long-term success
Elin explained that today’s sustainability landscape is dynamic, shaped by evolving regulations, stakeholder demands and technological advancements. Nordic Capital’s active ownership model is thus designed to help companies not only adapt but lead in this environment.

Key pillars of this support model include:

• Training and Tools: Nordic Capital equips portfolio companies with the training, resources and tools needed to integrate material sustainability factors into their business agendas. To date, more than 1,400 professionals across the portfolio and advisory offices have received targeted sustainability training.
• Data-Driven Performance: The use of advanced sustainability software platforms enables Nordic Capital to monitor, track and benchmark impact across all portfolio companies and between peers.
• Science-Based Targets: Nordic Capital has set greenhouse gas reduction targets approved by the Science Based Targets initiative (SBTi), aligning its portfolio with the Paris Agreement’s 1.5° pathway and supporting companies in setting and achieving ambitious decarbonisation goals.

When embraced as a strategic tool, robust reporting allows companies to better understand and manage their sustainability risks and opportunities, measure progress and benchmark performance against peers. By leveraging data and rigorous standards, Nordic Capital and its portfolio companies can use sustainability reporting to generate actionable insights, driving operational improvements, innovation and resilience.

The blend of active ownership, functional and subsector expertise and a rigorous sustainability agenda creates a powerful platform for growth. By embedding sustainability at the heart of value creation and leveraging expertise on how to execute, Nordic Capital helps its portfolio lead in an ever-evolving landscape.