ESG Policy Nysnø Climate Investments
The purpose of this policy is to describe Nysnø Climate Investments (Nysnø) approach to sustainable investment, including Environmental, Social and Governance issues (ESG).
- Ownership and Accountability
The Chief Executive Officer (CEO) is owner of the policy and responsible for ensuring that the policy is implemented. The ESG Policy is anchored in the Board of Directors. The CIO is responsible for ensuring that the ESG Policy is integrated in all investment analyses, decision-making processes and in Nysnø’s exercise of ownership.
- Principal Objective
Nysnø invests in companies that directly or indirectly contribute to reducing climate gas emissions. Environmental considerations hold a prominent place in the company’s investment process, however, a company’s sustainability also has other components, and profitability requires long-term, sustainable business models. Furthermore, Nysnø sees the independent value of developing increasingly more sustainable businesses, and this is part of our social responsibility. Nysnø therefore integrates ESG assessments into its investment business.
- Foundations for Nysnø’s ESG approach
Nysnø’s ESG approach is based on the company’s core values:
Profitability: Nysnø’ portfolio shall be profitable over time.
Climate gas emissions: Nysnø’s investments support development and commercialisation of technology that reduces climate gas emissions. This is the company’s societal mission.
Value Adding: Nysnø functions as a catalyst for private investment and business activities, facilitates development of technology and increases awareness of climate gas emissions and sustainability issues.
Long-term view: Nysnø has patient capital with a long-term horizon, and economic, environmental and social profitability is measured on a long-term basis. Future businesses must embrace sustainability.
- Principles for Resposible Investments (PRI)
Nysnø has signed the PRI and has committed to:
– Incorporate ESG themes in investment analyses and decision-making processes.
– Be active owners and incorporate ESG themes in its exercise of ownership.
– Work toward satisfactory reporting of ESG themes from the companies which Nysnø has invested in.
– Promote accept for, and implementation of, the principles of the financial market.
– Cooperate to ensure an efficient implementation of the aforementioned principles.
– Report on its activities and implementation of said principles.
- How does Nysnø integrate ESG into its investment activities?
Nysnø will integrate consideration of ESG matters in all our investment analyses, decision-making processes and in our active exercise of ownership.
6.1. Investment Decisions
Nysnø invests in shares and bonds from unlisted issuers and in fund shares. ESG is integrated into the investment decisions in all asset classes, however access to information and analysis will vary according to type of investment. An evaluation of reduction of climate gas emissions will be central in all of Nysnø’s investment decisions.
6.2. Individual Investments – Shares and Bonds
Upon investment in shares and bonds from unlisted issuers, there is little publicly available and standardised information regarding the company’s ESG position. An ESG assessment must therefore be included in the analysis of the individual company.
Nysnø’s investment mandate encompasses companies of varying degrees of maturity and, as such, with varying degrees of capacity of and expectations to reporting systems. Nysnø will familiarise itself with the company’s ESG position, actual as well as planned, during the due diligence process, including the company’s awareness of and attitudes toward ESG.
Nysnø will primarily endeavour to promote ESG considerations through its ownership, however serious violations of the ESG guidelines may have consequences for Nysnø’s ownership should the company fail to show willingness or ability to operate in line with Nysnø’s communicated ESG expectations.
6.3. Fund Investments
Upon investments in funds (including PE, venture and securities funds), Nysnø will include ESG assessments in its evaluation of both fund managers and funds. Nysnø will supplement publicly available evaluations and rankings with an independent assessment of the fund manager’s and the fund’s ESG work, actual as well as planned. Nysnø will solely invest in funds where the manager has signed the PRI or other equivalent internationally recognised ESG standards.
6.4. Exercise of Ownership
Through its ownership, Nysnø will endeavour to secure economic, social and environmental returns. Nysnø is a long-term owner and will use its influence to continue to improve the various companies’ efforts toward sustainability and social responsibility, including reporting. Nysnø will, in close communication with the companies, focus on the handling of substantial risks and opportunities related to environmental and social impact.
Moreover, Nysnø will participate through monitoring of the companies’ developments, close communication with management and, where appropriate, exercise influence on strategy, results, risk, compensation and corporate governance. Nysnø may participate in groups with owners who have congruent interests. Nysnø will further engage in the exercise of creditor’s rights in cases where Nysnø is bondholder.
Nysnø votes at general meetings where Nysnø is owner. When making fund investments, we expect the fund manager to vote for the fund’s shares. Nysnø follows the Norwegian Corporate Governance Board’s (NCGB/NUES) recommendation on corporate governance to the extent that this is appropriate for unlisted companies.
Nysnø expects responsible and sustainable investment practices from all of its co-investors. The co-investor is expected to have an ESG procedure in place and to use ownership influence to influence the companies in line with ESG best practice and PRI principles. Co-investors are encouraged to sign the PRI.
In its role as manager of public funds, Nysnø emphasises transparency in its activities and will make its investment portfolio public.