Evli Private Capital Fund I

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

The fund promotes environmental and social characteristics. Responsibility factors are integrated into the investment process and its various stages, from identification of investment assets to analysis, investment decision, holding period and exit. The fund promotes climate work and climate change mitigation as part of the promotion of environmental characteristics by excluding certain sectors and by engaging with target companies by exercising active ownership, for example. The aim is to support all target companies in both emission accounting and emission reduction targets. 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.

The fund will draw up a sustainability plan with each target company with a view to finding the most suitable ESG (Environmental, Social and Governance) strategy for each target company. Once the strategy is complete, the Board of the target company will define a set of sustainability indicators together with the company and its management as a 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 quality of the company’s products or services, its energy and materials efficiency, and the company’s financial management, tax footprint and the diversity of its decision-makers. As owners, the Fund aims to ensure that every target company monitors and reports its sustainability indicators and, if necessary, changes direction. The Fund can also 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's Principles for Responsible Investment for direct private equity investments and funds set the framework for Evli’s engagement and conduct in the event of perceived breaches of norms.

In addition to its own principles for responsible investment, the Fund complies with Evli’s general Principles for Responsible Investment. 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.

The Fund requires the target companies to follow good governance practices. The assessment of governance quality ensures that the target companies comply with good governance practices, such as the multinational guidelines and guiding principles, as well as the laws and regulations of the countries where they operate. The assessment considers governance and business ethics, human resources, competitive behavior, bribery and corruption and compliance with tax laws, for example.

All active investments of the fund promote environmental and social characteristics. The achievement of environmental and social characteristics is monitored through sustainability indicators. The sustainability indicators are the share of investments that have a sustainability plan, known as an ESG strategy, specific to the target company; a Code of Conduct; and specified emission reduction targets. 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.

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

The fund promotes environmental and social characteristics. Responsibility factors are integrated into the investment process and its various stages, from identification of investment assets to analysis, investment decision, holding period and exit. 

The fund promotes climate work and climate change mitigation as part of the promotion of environmental characteristics by excluding certain sectors and by engaging with target companies by exercising active ownership, for example. The aim is to support all target companies in both emission accounting and emission reduction targets. 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.

The fund will draw up a sustainability plan with each target company with a view to finding the most suitable ESG (Environmental, Social and Governance) strategy for each target company. Once the strategy is complete, the Board of the target company will define a set of sustainability indicators together with the company and its management as a 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 quality of the company’s products or services, its energy and materials efficiency, and the company’s financial management, tax footprint and the diversity of its decision-makers. As owners, we aim to ensure that every target company monitors and reports its sustainability indicators and, if necessary, changes direction.

In addition to its own principles for responsible investment, the Fund complies with Evli’s general Principles for Responsible Investment. 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.

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. Before investing, the Fund will conduct an ESG assessment as part of the due diligence process, which will identify the target company’s current level of ESG management and its intentions, as well as the principal ESG risks and opportunities and their impact on the company’s performance. The target company’s ESG obligations are entered in shareholder agreements. The Fund requires companies to commit to improving good governance and responsible practices as part of their value creation.

The Fund’s goal is active ownership through significant minority holding. The prerequisite is always to gain at least one board seat in the target company to allow for regular engagement.

In addition, the Fund requires the target companies to follow good governance practices. The assessment of governance quality ensures that the target companies comply with good governance practices, such as the multinational guidelines and guiding principles, as well as the laws and regulations of the countries where they operate. The assessment considers governance and business ethics, human resources, competitive behavior, bribery and corruption and compliance with tax laws, for example.

All active investments of the fund (at least 70%) promote environmental and social characteristics.

The achievement of environmental and social characteristics is monitored through sustainability indicators. The sustainability indicators are the share of investments that have a sustainability plan, known as an ESG strategy, specific to the target company; a Code of Conduct; and specified emission reduction targets.

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

Before investing, the Fund will conduct an ESG assessment as part of the due diligence process, which will identify the target company’s current level of ESG management and its intentions, as well as the principal ESG risks and opportunities and their impact on the company’s performance. 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 quality of the company’s products or services, its energy and materials efficiency, and the company’s financial management, tax footprint and the diversity of its decision-makers. The Fund collects the information directly from the target companies,  and the information is not verified by Evli or a third party. Data coverage is reported alongside reported information.

The achievement of the promoted environmental and social characteristics is reported annually through the sustainability indicators mentioned above, in conjunction with which the coverage of the data is also reported. The completeness of the data does not affect compliance with the above principles. The Fund may report information collected directly from the target companies and information based on Evli’s own assessment. The proportion of assessed data is reported as part of the Fund’s reporting.

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. In addition to its own responsible investment principles, the fund follows Evli's general responsible investment principles and general exclusion, which defines the basic criteria for norm-based screening and exclusion of companies.

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's Principles for Responsible Investment for direct private equity investments and funds set the framework for Evli’s engagement and conduct in the event of perceived breaches of norms.

The fund does not have a benchmark index.