By having ESG as an integral part of the Business Model and by aspiring to apply best practice, EQT and portfolio companies mitigate risks and capture opportunities for long-term value creation and competitiveness.
A sustainable approach to investment and ownership has been part of EQT’s DNA from the start. Genuine management of environmental, social and corporate governance (ESG) factors is fundamental to business success and strong investment performance. Having a sustainable approach to business enables EQT to address a changing environment that constantly gives rise to new opportunities and risks. Thinking and acting in a sustainable manner means that one has to appreciate being on a continuous journey.
In 2010, to formalize what was already part of both the investment process and ownership model, EQT adopted a policy that covers responsible investment (RI) practices. It describes what is expected of EQT as an investor as well as what EQT expects from portfolio companies. The EQT RI Policy considers factors such as the environment, labor and human rights and ethics when a potential investment is assessed. Once an investment has been made, EQT raises awareness, promotes high standards and monitors observance of relevant RI factors.
Examples of RI factors that are highlighted in the EQT RI Policy are limitations and reductions of the emission of harmful substances and waste, limiting and reducing consumption of scarce resources, zero-tolerance regarding child labor, various types of discrimination and corruption and unethical business practices, as well as promoting the right to collective bargaining and actively seeking positive involvement with stakeholders and communities.
Since December 2010, EQT is a signatory to the United Nations-supported Principles for Responsible Investment (PRI) Initiative. The six principles, initiated in 2005, were developed by an international group of institutional investors, reflecting the increasing relevance of ESG issues to investment practices. As of late 2015, more than 1,400 investment managers, asset owners and professional service providers were signatories.
EQT's Responsible Investment team
Within EQT Partners there is a dedicated RI Team. The RI Team supports EQT in its continuous integration of RI/ESG matters, including promoting awareness internally, supporting the EQT Partners investment advisory teams in their engagement efforts with portfolio companies on sustainability matters as well as engaging with external stakeholders. These activities are led by the Head of Responsible Investment, in close liaison with the Managing Partner, to whom the Head of Responsible Investment reports directly.
Head of Responsible Investment
Member of the board of directors of EPER, the large private equity platform of Invest Europe (formerly EVCA – the European Private Equity & Venture Capital Association), as well as a member of the Invest Europe Responsible Investment Roundtable, which she also was the Chairwoman of between January 2013 and December 2014.