Sustainable practice is integral for success
At Nordic Eye, we are committed to invest responsibly. By being strong believers in the fact that following a responsible business practice will lead to value creation and long-term success, Nordic Eye is invested in combining its sustainability strategy with its business strategy.
We are engaged in trying to contribute positively to society by investing in and building strong companies, which can contribute to sustainable development. Furthermore, we strive for sustainable awareness both within our own company as well as in our portfolio.
As a part of Nordic Eye’s identity, our team engages at all stages of the investment process – from deal sourcing and selection all the way through to an exit. The whole process is governed by best practice both en terms of economic, social and environmental behavior.
March 10, 2021
Sustainability Policy
All information below is produced according to the European Parliament and European Council’s Regulation 2019/2088/EU of November 27th, 2019 on the sustainability-related disclosures in the financial services sector.
- Integration of Sustainability Risk
Sustainability risk means an environmental, social or managerial event or circumstance (“ESG risk”) which, if it arises, could have an actual or potentially significant adverse effect on the value of an investment. These risks are integrated into the investment decision of Nordic Eye, and are likewise taken into account during the investment process, in a manner which is proportionate to each investment’s objective. Furthermore, Nordic Eye’s approach to sustainability risk is the same as other forms of risk managements in relation to its investments.
- Statement on principal adverse impacts of investment decisions on sustainability factors
Nordic eye considers the Principal Adverse Impact on sustainability factors that our investment decisions have. In the due diligence process of new investment decisions, Nordic Eye adhere to strict policies in order to ensure that the investment is on par with our high requirements. These policies include extensive research on the impact of the investment decision’s products and services, critical dialogue with the target’s founders and personnel to ensure they adhere to the same policies as Nordic Eye. Any investment in the following non exhaustive list of sectors, is against the principles of Nordic Eye:
- Tobacco
- Firearms and Armaments
- Oil
- Gambling/Betting
- Pornography
Our portfolio companies should as a minimum establish governance structures to meet the requirements embedded in our Sustainability Principles. The following sustainability criteria need the be met for an investment to be considered:
- The company is not a part of, or has any affiliation with, the “no-go”-industries mentioned above.
- The company does not affiliate with countries, persons or entities that are on the UN sanctions list.
- The sustainability risks of the company are perceived and determined to be acceptable and manageable.
- The company has outlined processes, procedures and policies to govern and manage sustainability risks.
In Nordic Eye, we value active ownership as a part of creating value of the company. This is also done by a strong and effective corporate governance structure. Through our investment we will advise and commit to these principal adverse impacts, and we are committed as an investor to follow the UN Principles for Responsible Investment.
- Integration of sustainability risks in renumeration policies
The boards of Nordic Eye’s portfolio companies must establish policies and systems that ensure board oversight with executive management, performance and renumeration reviews, legal compliance, regards and accounting standards, effective internal controls and solid risk management processes. This forms part of Nordic Eye’s effective monitoring and reporting to ensure that excessive risk taking, also in relation to sustainability risks, is mitigated through discouragement and prevention.
Nordic Eye personnel are reviewed in regard to remuneration once a year in January. The review is based on performance and ability to comply with out Sustainability Principles and ESG initiatives. In addition, where an individual, no matter level or seniority, has made a significant and tangible effort or value-adding contribution to the implementation of Nordic Eye’s Sustainability Principles, this could be included in the performance review on the remuneration as a discretionary reward.
- Pre-contractual information: Integration of sustainability risks and effect on return
The key objective of Nordic Eye is to create value and strengthen our portfolio companies through active ownership, ultimately yielding a higher return for our investors. However, if an investment target does not meet Nordic Eye’s requirements to sustainability and ESG initiatives, while being a positive candidate with regards to return, Nordic Eye will still choose to not invest in the target. This is based on our commitment to our sustainability initiatives and commitment to a positive societal impact.