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Sustainability

At Broviken, we approach sustainability from a social, environmental, and economic perspective, where sustainability is a cornerstone in all our investments and throughout our ownership.

Our joint sustainability efforts are essential for creating long-term value for employees, clients, and investors, while contributing positively to the development of society.

 

Sustainable investments

Broviken's process for ensuring sustainable investments comprises three steps:

Initial review
When potential acquisitions are identified, an initial review of the company's business model, financial performance, management team, market, etc., is carried out. Broviken excludes companies that do not meet Broviken's standards regarding sustainability with respect to corporate governance, core values, and approach to employees and clients.

Due diligence
Prior to each acquisition, a financial, legal, and operational due diligence is conducted, encompassing sustainability aspects (corporate governance, employee-related aspects, and environmental impact). Any sustainability risks are identified, analysed, and documented from an early stage, which feeds into our investment decision.

Board and company-specific sustainability initiatives
Broviken is represented on the boards of all group companies, where both financial performance and strategic initiatives (including sustainability) are on the agenda. Each portfolio company within Broviken is expected to pursue 1–2 company-specific sustainability initiatives per year, in addition to reporting on specific financial and non-financial KPIs.

Sustainability

The following statement is provided by Broviken Gruppen I and Broviken Gruppen II ("Broviken") regarding mandatory disclosures under the EU Sustainable Finance Disclosure Regulation (SFDR) ((EU) 2019/2088). Broviken's funds are not marketed as sustainable in accordance with Article 8 or 9 of the SFDR.

Integration of sustainability risks in our investment decision-making process (Article 3 of SFDR 2019/2088)

Long-term value creation is a cornerstone of Broviken's strategy and a guiding principle for all investments undertaken. Sustainability is naturally integrated into our investment decisions and ownership remit, enabling us to fulfill our commitment to long-term value creation for:

1. Our portfolio companies' employees and clients
2. Our investors
3. Society at large

We work continuously to maintain high business ethics and responsible corporate governance across the group. The following pillars are essential to sustaining Broviken's strategy of executing responsible investments and responsible corporate governance;

1. When potential acquisitions are identified, an initial review of the company's business model, financial performance, management team, market, etc., is carried out. Broviken excludes companies that do not meet Broviken's standards regarding sustainability with respect to corporate governance, core values, and approach to employees and clients.

2. Prior to each acquisition, a financial, legal, and operational due diligence is conducted, encompassing sustainability aspects (corporate governance, employee-related aspects, and environmental impact). Any sustainability risks are identified, analysed, and documented from an early stage, which feeds into our investment decision.

3. Broviken is represented on the boards of all group companies, where both financial performance and strategic initiatives (including sustainability) are on the agenda. Each portfolio company within Broviken is expected to pursue 1–2 company-specific sustainability initiatives per year, in addition to reporting on specific financial and non-financial KPIs.

As an owner, Broviken encourages all portfolio companies to establish a code of conduct covering the ten principles of the UN Global Compact. Broviken also works to ensure that portfolio companies implement an IT policy, a whistleblower policy, and a procurement policy. Furthermore, Broviken supports the portfolio companies in formulating their own sustainability strategies and monitors their performance against specific KPIs on an annual basis.

A public sustainability report covering the portfolio companies and Broviken's ESG activities will be published annually starting in 2025.

Integration of sustainability risks in our remuneration policy (Article 5 of SFDR 2019/2088)

Broviken's employee remuneration is determined based on an annual evaluation encompassing both financial and non-financial criteria. The non-financial criteria include how each of Broviken's employees aligns with the values of our portfolio companies, including sustainability aspects.

No consideration of adverse sustainability impacts, PAI (Article 4 of SFDR 2019/2088)

Broviken does not consider the principal adverse impacts (PAI) of our investment decisions in accordance with Article 4 of the SFDR. The primary reason is that the methodology, content, and legal requirements for assessing these adverse impacts remain under evaluation. However, Broviken will monitor regulatory developments and evaluate and update our position accordingly.

Broviken also continues to evaluate and consider its obligations under Article 7 (1) of the SFDR.