FEBRUARY 03 2025
Nordic Capital's sustainability strategy is two-fold: investing in businesses that deploy circular business models and providing companies with the products, services and expertise needed to decarbonise. In an interview with Private Equity International, Elin Ljung, Operating Partner, Head of Sustainability & Communications, delves into these efforts.
As global awareness of environmental and social issues rises, sustainability has become a core focus for investors and corporations. This shift is redefining traditional notions of value and success, spurring innovation and creating ample investment opportunities around the world.
Nordic Capital has strategically invested in companies like Autocirc, Foxway, and Sortera in recent years. These investments, as Elin explains, highlight ongoing trends and opportunities within the greentech sector, particularly in areas such as resource efficiency and recycling.
In addition to new investments, Nordic Capital collaborates closely with its existing portfolio companies to foster meaningful change. The firm focuses on reducing emissions and achieving long-term cost savings and value creation. By utilising a data-driven approach, Nordic Capital makes certain that progress is transparently tracked and monitored, while actively supporting portfolio companies with a hands-on mindset.
An illustrative example of these efforts is Leo Pharma, which had its near-term emissions reduction targets validated by the Science-Based Targets initiative (SBTi) in 2022. The company further advanced its decarbonisation efforts in 2024, with a net-zero target set for 2050.
"We have a large operations team with many different functional experts in areas such as sustainable procurement, sustainable strategy, and diversity and inclusion. Through the private equity model, we are able to share best practice, proven playbooks and the wisdom of these experts across the portfolio. It is the ideal ownership model for delivering a greener future," said Elin.
While sustainability has long been integral to Nordic Capital, this mindset is increasingly embraced across the private equity landscape. Elin attributes this trend to private equity's capacity for transformative, large-scale change, making it an ideal model for advancing sustainable practices.