Responsible Investment Policy

 

1. INTRODUCTION

At Nordic Ignite, we are committed to integrating environmental, social, and governance (ESG) considerations throughout our investment processes, from sourcing and screening to portfolio management and exits. ESG factors are central to our mission, enhancing both societal impact and the success of our investments.

This policy outlines our dedication to fostering sustainable growth, diversity, and innovation within our portfolio companies and across the Nordic entrepreneurial ecosystem.

1.1. Supporting Framework 

  • SFDR Compliance: Nordic Ignite adheres to the EU Sustainable Finance Disclosure Regulation (SFDR) to integrate sustainability risk assessments in our investment processes.

  • Alignment with SDGs: We use the United Nations Sustainable Development Goals (SDGs) as a framework to evaluate our impact, aiming to contribute to global objectives through our investments.

  • Minimum Safeguards: We follow the OECD and UN guidelines to mitigate any potential adverse impacts of our investments on people and the planet.

2. ESG INTEGRATION WITHIN NORDIC IGNITE

Nordic Ignite integrates ESG principles not only in our investment strategy but also in our operations and corporate culture.

  • Commitments: We uphold principles like the Copenhagen Tech Pledge and Diversity Commitment, championing cross-border collaboration and inclusion.

  • Data Security: We maintain high standards of data privacy and security in compliance with applicable laws and regulations.

  • Active Engagement: We advocate for ESG through thought leadership, including speaking engagements, articles, and media contributions.

  • Governance Standards: We follow Nordic corporate governance guidelines, ensuring transparency and accountability across our operations.

  • Diversity and Inclusion: We prioritize diversity in our own team and encourage it within our portfolio companies, recognizing the value of varied perspectives.

3. ESG INTEGRATION IN THE INVESTMENT PROCESS

As a key driver of positive impact, Nordic Ignite is committed to rigorous ESG assessment throughout the investment lifecycle.

3.1. Negative Screening

We do not invest in companies involved in:

  • Activities deemed illegal under applicable laws.

  • Tobacco, alcohol, weapons, gambling, or industries that contribute to societal harm.

  • Sectors with significant adverse environmental or social impacts.

3.2. Positive Screening

We actively seek companies that:

  • Leverage technology to address pressing challenges and align with the SDGs.

  • Foster inclusive and sustainable business practices.

  • Demonstrate a commitment to diversity, fair labor practices, and resource efficiency.

3.3. Post-Investment Engagement

Our role as an investor extends to providing support for responsible scaling within our portfolio companies:

  • Diversity: Encouraging boards and teams that reflect diverse backgrounds, skills, and perspectives.

  • Sustainability: Supporting resource-efficient practices, waste reduction, and sustainable sourcing.

  • Human Rights: Ensuring respect for fair labor practices and human rights across operations.

  • Adversity Response: In cases of business failure, we prioritize responsible closure strategies over bankruptcies that may adversely impact stakeholders.

  • Governance: Provide guidance to portfolio companies in establishing strong governance practices. This includes ensuring that regular board meetings are held, detailed minutes of meetings are recorded, and robust shareholders' agreements are in place.

4. MEASURING AND REPORTING IMPACT

Nordic Ignite is committed to transparency and continuous improvement in our ESG practices:

  • Metrics and Reporting: We set clear KPIs for measuring diversity, environmental impact, and social responsibility across our portfolio. Quarterly reports will include updates on these metrics to stakeholders.

  • Regular Policy Review: This policy will be reviewed annually to adapt to emerging ESG trends and regulatory updates.

5. CONCLUSION

Our Responsible Investment Policy is a commitment to fostering an equitable, sustainable, and innovative investment environment. Nordic Ignite is dedicated to being a positive force within the Nordic ecosystem, prioritizing responsible growth for our portfolio companies and lasting value for our stakeholders.

The EU Sustainable Finance Disclosure Regulation (“SFDR”)

As stated in chapter 1.1. on Supporting Frameworks Nordic Ignite adheres to the EU Sustainable Finance Disclosure Regulation (SFDR) to integrate sustainability risk assessments in our investment processes.  Sustainability risk is defined as an environmental, social or governance event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the investment.

Our Responsible Investment Policy defines how sustainability risk is integrated into our investment decision-making process in accordance with Article 3 of the SFDR. We exclude sectors with significant adverse environmental or social impacts, mitigating all potential sustainability risk related to these sectors. For other sectors we focus on advancing the SDGs and other ESG principles with purpose driven investments, minimizing potential sustainability risk.