JULY 04 2025
Nordic Capital is certain that sustainability and value creation go hand in hand. This mindset is integral to its selective investment and active ownership strategy, driving transformative sustainable change both within the organisation and the portfolio.
Nordic Capital is committed to investing responsibly, believing strongly that responsible business practice is essential for building world-class companies and achieving long term success. This means backing sustainable companies to have a larger impact, or supporting companies in more traditional sectors to become more sustainable.
With a clear commitment to making a positive contribution to society by helping to build strong and resilient companies, Nordic Capital promotes best practice in governance, social and environmental behaviour at all stages of the investment process, from sourcing selection to exit.
In 2024, Nordic Capital received a top rating from the UNPRI for the second consecutive year and further advanced its climate agenda when its greenhouse gas emissions reduction targets were approved by the Science Based Target initiative (SBTi). Furthermore, Nordic Capital was recognised with “ESG GP - Large Cap” at the Real Deals’ Private Equity Awards, and with “ESG Private Capital Fund of the Year” at the Private Equity Wire European Awards.
In 2024, Nordic Capital closed its mid-market fund Evolution II, which, as an SFDR Article 8 fund, will drive and promote sustainability agendas and practices.
Active ownership to drive sustainable growth
As an engaged owner, Nordic Capital works in close collaboration with its portfolio companies to promote sustainability and share best practice. Nordic Capital provides access to tools and processes within its Sustainability Toolbox, as well as to its experienced in-house team, which collaborates closely with the investment and operations teams to drive tangible sustainability improvements.
Nordic Capital sets out clear expectations for the portfolio companies from day one, ensuring that sustainability is addressed appropriately and regularly reviewed throughout the organisation. The annual data collection from portfolio companies is a fundamental element of Nordic Capital’s data-driven approach to sustainability. It forms the foundation for stakeholder reporting, supporting dialogue on sustainability maturity and performance.
The portfolio companies receive a feedback report, enabling benchmarking across Nordic Capital’s portfolio and sector peers. These are reviewed in Nordic Capital’s portfolio governance forums and by management and board of directors of the portfolio companies.
Training for accelerated sustainable development
Nordic Capital Advisors believes that capacity building is crucial for advancing sustainability agendas, supported by tools, policies and frameworks. To that end, it makes sure that its portfolio companies are well-equipped with the necessary skills to understand and effectively apply such tools and practices.
To increase awareness and ensure compliance with its responsible investment framework, Nordic Capital Advisors trains investment and operations professionals on managing sustainability risks and opportunities across the investment cycle. Since 2014, more than 1,400 professionals have attended these training sessions on topics such as corporate compliance, sustainability strategies, regulation and reporting. These training programmes, co-hosted with renowned external advisors, enjoyed a record-high level of attendance in 2024, with 235 professionals and board members from the portfolio and Nordic Capital Advisors participating.
In addition to hosting Sustainability Spotlight sessions and cross-functional events, Nordic Capital gathers its portfolio companies on a regular basis for the annual Sustainability Summit and a series of roundtable events. Often held in person, these events provide professionals with access to leading expertise and ensure steady progress of sustainability practices and capabilities.
Refined responsible investment framework
In 2024, Nordic Capital’s annual review of responsible investment policies and processes brought greater clarity to the disclosure of sustainability issues and data management, further reinforcing its commitment to a low-carbon economy.
In addition, Nordic Capital completed its first annual SFDR limited assurance process, providing guidance on regulatory interpretation and best practices for data quality and availability, in 2024.
UN PRI Score 2024
- Top 10% Globally – Policy Governance and Strategy
- 95/100 Globally – Private Equity
- 99/100 Globally – Confidence Building Measures 100/100
“Nordic Capital Advisors stands committed to advising on responsible investment, aiming to contribute to lasting success and value creation.”
Elin Ljung, Operating Partner, Head of Sustainability & Communications, Nordic Capital Advisors
This text was retrieved from Nordic Capital's Annual & Sustainability Review 2024.