Sustainability.

At Litorina, we are convinced that our companies must have a sustainable and long-term approach to be successful. For us, sustainability is essential to drive long-term value creation. We recognize that our decisions and activities have an impact on the environment and on the people and communities where we and our portfolio companies operate. As active owners, it is Litorina’s ambition to manage those impacts and promote sustainable business practices.

Responsible investment.

The UN Principles for Responsible Investment (PRI) is an international organization that works to promote the incorporation of environmental, social, and corporate governance factors into investment and ownership decision-making. In implementing them, signatories contribute to developing a more sustainable global financial system.

Litorina has been a signatory of the UN PRI since 2014. Our active ownership approach is consistent with the six principles of the UN PRI. As a signatory we are subject to regular reporting and you can find our latest Annual PRI Transparency Report here:

Transparency Report 2023

Responsible investment framework – Our responsible investment framework defines Litorina’s purpose, approach
and focus areas within environmental, social, and corporate governance
matters and is an integrated part of all stages in our investment process: (1)
deal sourcing, (2) investment decision, (3) ownership and value creation
and (4) exit.

Deal sourcing

  •  
    Exclude companies or entities whose business activity consists of illegal economic activity, or which substantially focus on tobacco and alcohol, weapons and ammunition, casino and gambling, illegal drugs, pornography or coal-based activities
  •  
    Include companies with a good potential to improve on our four core SDGs
  •  
    Pro-active sourcing excludes sectors and subsectors exposed to high sustainability risks

Investment decision

  •  
    Perform an ESG due diligence to determine sustainability risks and opportunities
  •  
    Companies that are exposed to (unmanageable) sustainability risks are excluded
  •  
    Confirmation of potential to contribute to our four core SDGs as well as identification of company specific SDGs
  •  
    ESG due diligence findings are an integrated part of the material presented to the Investment Committee

Value creation

  •  
    Assign responsibility and accountability for managing ESG matters to the board and management (ESG onboarding):
    ✓ Sustainability coordinator
    ✓ ESG committee
    ✓ ESG governance (policies, training, etc.)
  •  

    ✓ ESG materiality assessment
    ✓ Selection of UN SDGs
    ✓ Setting ESG KPIs and targets
    ✓ ESG integration into the business strategy
    ✓ Educate and communicate

Exit

  •  
    Communicate achievements and, where possible, measure impact over the investment period
  •  
    Identify lessons learned and integrate feedback into the Responsible Investment Framework

For further details Litorina’s responsible investment framework can be found here:

Litorina’s Responsible Investment Framework

Key focus areas

The UN Sustainable Development Goals are the blueprint to achieve a better and more sustainable future for all. They address global challenges such as poverty, inequality, climate change, environmental degradation, peace and justice. Based on an overall environmental and social footprint analysis of Litorina and our portfolio companies, we have identified four Sustainable Development areas where we can make the biggest impact as a private equity company and across our portfolio to support the global vision of a sustainable future for all.

13

Environmental

We will support our portfolio companies in creating robust climate strategies, report on GHG emissions and reduce environmental impact in our portfolio companies and at Litorina.
5 & 8

Social

We will increase the share of women at Litorina and increase the share of women in Litorina’s Advisor network (which represents the non-executive board members that Litorina appoints to the board of directors of our portfolio companies).

We will create new jobs in our portfolio companies and promote sustainable and safe workplaces.

16

Governance

We will promote and implement sustainable corporate governance practices and business ethics with the aim of reducing risk of corruption and bribery.

Sustainability related disclosures.

The EU Sustainable Finance Disclosure Regulation (SFDR) ((EU) 2019/2088) is a set of EU rules which aim to make the sustainability profile of funds more comparable and better understood by end-investors.

Litorina V AB and Litorina V (A) AB (jointly “Litorina V”) promote environmental or social characteristics, but do not have as its objective to make any sustainable investment. As a result, Litorina V complies with Article 8 of the SFDR. For more SFDR information please see the below SFDR disclosure document:

Litorina SFDR Disclosures

Sustainability Report.

To increase transparency of our sustainability approach and progress Litorina publishes a Sustainability Report on an annual basis. The Sustainability Report provides highlights of what Litorina has been working on during the year as well as sustainability KPIs that we measure in our portfolio companies. Some highlights from our latest report are:

  • Launch of an ESG onboarding program – creating “five-star” sustainable companies

  • The ESG onboarding program provides our portfolio companies with a structured way to progress in their sustainability efforts as well as clear expectations on sustainability matters and reporting requirements from Litorina. The program consists of the following steps:

 
  • Introduction of ESG committees:

  • To assure progress in the sustainability efforts of our portfolio companies we introduced ESG committees. The ESG committees consist of Litorina’s Head of ESG and deal team as well as the portfolio companies’ Managing Director, Sustainability Coordinator and the Chairman of the Board of Directors. ESG committees have regular meetings to follow up on the progress of the ESG strategy and maturity of the portfolio company.

 
  • Developed the Litorina Climate framework:

  • Litorina, together with Ethos International, developed a framework to guide Litorina and our portfolio companies. The purpose of the Litorina Climate Framework is to guide both Litorina and our portfolio companies in their efforts to reduce their climate impact.

    The Climate Management Structure is to be used as a foundational part of Litorina’s management of climate-related topics within our portfolio. It allows us to pursue annual improvements across our portfolio, and when assessing potential additions to the portfolio.

    The Climate Handbook is a separate document and includes guidance for the portfolio companies to reduce their emissions and climate impact. It can be used by each of the portfolio companies and is divided into four sectors in order to include more specific actions of importance for different sectors.

 

For more details Litorina’s latest Sustainability Report can be found here:

Litorina Sustainability report 2022/2023

Code of Conduct.

Corporate sustainability starts with a company’s value system and a principles-based approach to doing business. This means operating in ways that, at a minimum, meet fundamental responsibilities in the areas of human rights, labour, environment and anti-corruption. Responsible businesses enact the same values and principles wherever they have a presence and know that good practices in one area do not offset harm in another. By incorporating the Ten Principles of the UN Global Compact into our Code of Conduct we acknowledge our basic responsibilities to people and the planet, but also set the stage for our long-term success.

Litorina’s Code of Conduct is a statement of Litorina’s commitment to adhere to the highest ethical and professional standards, to deal fairly and honestly, to act with integrity and transparency and invest responsibly.

Litorina’s Code of Conduct
  • This site uses cookies to enhance your experience. Read more