Evli Growth Partners

Financial product’s sustainability information in accordance with EU Sustainable Finance Disclosure Regulation (SFDR) 2019/2088 (sustainability‐related disclosures in the financial services sector). This is a financial product in accordance with Article 8 of the SFDR.

Publication date: December 15, 2022
Legal Entity Identifier: 2957933-5 (business identity code)

a) Summary

This financial product promotes environmental or social characteristics, but its objective is not to make sustainable investments. The Fund promotes sustainability factors related to the environment and society as part of investment operations by systematically integrating responsibility factors into investment analyses and by engaging with and excluding companies. Therefore, sustainability factors are integrated throughout the investment process.

The fund will draw up a sustainability plan with each target company with a view to finding the most suitable sustainability strategy for each target company. Once the strategy is complete, a set of sustainability indicators will be defined together with the company management and the Board of Directors as part of the implementation of the strategy. The indicators are always company-specific and may include measures for monitoring biodiversity, climate change, personnel satisfaction, occupational safety and diversity, the company’s tax footprint and the diversity of decision-makers. For each company, as owners we aim to ensure that the company monitors and reports its sustainability indicators and, if necessary, changes the direction of its operations. The financial product can be used to engage with the target companies as part of the promotion of environmental and social characteristics in the ways enabled by the investment product. Evli’s Principles of Responsible Investment and Evli Growth Partners’ responsibility principles set the framework for Evli’s engagement and conduct in the event of perceived breaches of norms.

The fund promotes climate change mitigation as part of the promotion of characteristics associated with the environment by engaging with companies and excluding certain sectors, for example. Evli’s goal is to achieve carbon neutrality by 2050 at the latest, and it has set an interim target of a 50 percent reduction in indirect emissions from all investments by 2030, provided that this is possible in the investment environment. The comparison year is 2019. The fund-specific share of the emission reduction target may vary between funds.

Through active ownership, the fund promotes climate work in target companies, including through emission accounting (Scope 1 and 2, and 3 to a limited extent). The aim is to support all target companies in both emission accounting and emission reduction targets. For all target companies, the aim is for an independent third party to prepare a calculation of the company’s carbon dioxide emissions together with the company. The fund is also committed to compensating for its share of the companies' emissions. As an owner, the fund aims to improve the efficiency of the operations of each target company so that carbon dioxide emissions are annually reduced per unit produced. If the target companies do not themselves compensate for their carbon dioxide emissions, the fund management company will aim to compensate for the carbon dioxide emissions of each target company in proportion with the fund’s holding. If the amount of the emissions cannot be calculated for reasons beyond the control of the fund, the amount of the emissions will be estimated by an external third party. The compensation will be paid by the third party.

When analyzing the fund’s investments, certain corporate sectors, for example, are excluded. The fund does not invest in companies with a higher than average carbon footprint (for example coal and steel companies). The fund does not invest in companies with high social cost (for example betting, gambling or pornography). The fund does not invest in companies whose corporate structure or model enables aggressive tax evasion (where the domicile of the companies is determined primarily in order to minimize taxation). In addition, the fund follows Evli’s general exclusion practices and Evli’s general and the fund’s own Principles for Responsible Investment.

The fund requires good corporate governance practices from its investments. An assessment of the quality of corporate governance is an integral part of the assessment of the fund’s potential investments. The corporate governance assessment has to do with the ability of the company, its management and the Board of Directors to assess risks related to corporate governance and the tools available for this. At the same time, the rights and obligations associated with the good governance of shareholders, the Board of Directors and the management are clarified and decided upon in the shareholder agreement or corresponding contractual structure.

All active investments of the fund promote environmental and social characteristics. The achievement of environmental and social characteristics is monitored through sustainability indicators. For all target companies, a third-party carbon calculation (Scope 1 and 2, and Scope 3 to a limited extent) will be carried out to support all target companies in both emission accounting and emission reduction targets. In addition, company-specific sustainability indicators will be agreed in the context of the target companies' sustainability plans. The indicators are always company-specific and may include measures for monitoring biodiversity, climate change, personnel satisfaction, occupational safety and diversity, the company’s tax footprint and the diversity of decision-makers.

The achievement of the promoted environmental and social characteristics is reported annually through the sustainability indicators mentioned above, in conjunction with which the completeness of the data is also reported. All active investments of the fund promote environmental and social characteristics by observing Evli’s Principles for Responsible Investment and those of the fund. The completeness of the data does not affect compliance with the above principles.

b) No sustainable investment objective

This financial product promotes environmental or social characteristics, but its objective is not to make sustainable investments.

c) Environmental or social characteristics of the financial product

The fund promotes sustainability factors related to the environment and society as part of investment operations by systematically integrating responsibility factors into investment analyses and by engaging with and excluding companies. Therefore, sustainability factors are integrated throughout the investment process.

The fund will draw up a sustainability plan with each target company with a view to finding the most suitable sustainability strategy for each target company. Once the strategy is complete, a set of sustainability indicators will be defined together with the company management and the Board of Directors as part of the implementation of the strategy. The indicators are always company-specific and may include measures for monitoring biodiversity, climate change, personnel satisfaction, occupational safety and diversity, the company’s tax footprint and the diversity of decision-makers. For each company, as owners we aim to ensure that the company monitors and reports its sustainability indicators and, if necessary, changes the direction of its operations.

The fund promotes climate change mitigation as part of the promotion of characteristics associated with the environment by engaging with companies and excluding certain sectors, for example. Evli’s goal is to achieve carbon neutrality by 2050 at the latest, and it has set an interim target of a 50 percent reduction in indirect emissions from all investments by 2030, provided that this is possible in the investment environment. The comparison year is 2019. The fund-specific share of the emission reduction target may vary between funds.

Through active ownership, the fund promotes climate work in target companies, including through emission accounting (Scope 1 and 2, and 3 to a limited extent). The aim is to support all target companies in both emission accounting and emission reduction targets. For all target companies, the aim is for an independent third party to prepare a calculation of the company’s carbon dioxide emissions together with the company. The fund is also committed to compensating for its share of the companies' emissions. As an owner, the fund aims to improve the efficiency of the operations of each target company so that carbon dioxide emissions are annually reduced per unit produced. If the target companies do not themselves compensate for their carbon dioxide emissions, the fund management company will aim to compensate for the carbon dioxide emissions of each target company in proportion with the fund’s holding. If the amount of the emissions cannot be calculated for reasons beyond the control of the fund, the amount of the emissions will be estimated by an external third party. The compensation will be paid by the third party.

When analyzing the fund’s investments, certain corporate sectors, for example, are excluded. The fund does not invest in companies with a higher than average carbon footprint (for example coal and steel companies). The fund does not invest in companies with high social cost (for example betting, gambling or pornography). The fund does not invest in companies whose corporate structure or model enables aggressive tax evasion (where the domicile of the companies is determined primarily in order to minimize taxation). In addition, the fund follows Evli’s general exclusion practices and Evli’s general and the fund’s own Principles for Responsible Investment.

d) Investment strategy

The fund complies with both Evli’s general and the fund’s own Principles for Responsible Investment. The fund works with each target company to develop a sustainability plan, engages with the companies, and excludes certain sectors.

The Fund requires good corporate governance practices from its investments. An assessment of the quality of corporate governance is an integral part of the assessment of the fund’s potential investments. The corporate governance assessment has to do with the ability of the company, its management and the Board of Directors to assess risks related to corporate governance and the tools available for this. At the same time, the rights and obligations associated with the good governance of shareholders, the Board of Directors and the management are clarified and decided upon in the shareholder agreement or corresponding contractual structure.

e) Proportions of investments

All active investments of the fund promote environmental and social characteristics.

f) Monitoring of environmental or social characteristics

The achievement of environmental and social characteristics is monitored through sustainability indicators. For all target companies, a third-party carbon calculation (Scope 1 and 2, and Scope 3 to a limited extent) will be carried out to support all target companies in both emission accounting and emission reduction targets.

In addition, the Fund will draw up a sustainability plan with each target company with a view to finding the most suitable sustainability strategy for each target company. Once the strategy is complete, a set of sustainability indicators will be defined together with the company management and the Board of Directors as part of the implementation of the strategy. The indicators are always company-specific and may include measures for monitoring biodiversity, climate change, personnel satisfaction, occupational safety and diversity, the company’s tax footprint and the diversity of decision-makers. For each company, as owners we aim to ensure that the company monitors and reports its sustainability indicators and, if necessary, changes the direction of its operations. The Fund reports annually on the performance of target companies to investors. The reports are comparable by company in a time series.

g) Methods concerning environmental or social characteristics

The environmental and social characteristics promoted by the financial product are monitored and reported using the sustainability indicators mentioned above.

h) Data sources and data processing

As part of its sustainability strategy, the fund decides on sustainability indicators for the target companies, and collects data for the indicators from the companies. These indicators may vary from company to company. In addition, the fund will conduct emission accounting (Scope 1 and 2, and 3 to a limited extent) and aims to support all target companies in both emission accounting and emission reduction targets. For all target companies, the aim is for an independent third party to prepare a calculation of the company’s carbon dioxide emissions together with the company. If the amount of the emissions cannot be calculated for reasons beyond the control of the fund, the amount of the emissions will be estimated by an external third party.

i) Limitations of methods and data

The achievement of the promoted environmental and social characteristics is reported annually through the sustainability indicators mentioned above, in conjunction with which the completeness of the data is also reported. All active investments of the fund promote environmental and social characteristics by observing Evli’s Principles for Responsible Investment and those of the fund. The completeness of the data does not affect compliance with the above principles.

j) Due diligence

Sustainability factors are integrated throughout the investment process. The fund will draw up a sustainability plan with each target company with a view to finding the most suitable sustainability strategy for each target company. Once the strategy is complete, a set of sustainability indicators will be defined together with the company management and the Board of Directors as part of the implementation of the strategy.

Through active ownership, the fund promotes climate work in the target companies, through emissions accounting and by supporting all target companies in both emissions accounting and emission reduction targets, for example. For all target companies, the aim is for an independent third party to prepare a calculation of the company’s carbon dioxide emissions together with the company. The fund is also committed to compensating for its share of the companies' emissions.

k) Engagement policies

The financial product can be used to engage with the target companies as part of the promotion of environmental and social characteristics in the ways enabled by the investment product. Evli’s Principles of Responsible Investment and Evli Growth Partners’ responsibility principles set the framework for Evli’s engagement and conduct in the event of perceived breaches of norms.

 l) Designated reference value

The fund does not have a benchmark index.