Our world faces major challenges: climate change, decreasing biodiversity, increasingly scarce resources, and increasing population. Alder invests in companies which can contribute to solutions of these challenges and which can create value in a changing world.
Alder’s funds have sustainability as an overall goal. The funds are classified within Article 9 according to the EU regulation on sustainability-related information in the financial services sector (SFDR).
Alder only invests in companies whose operations have a positive impact on the environment. Our portfolio companies create value through environmental benefits such as reduced consumption of energy and resources, reduced emissions to air and water and reduced waste. We also take social and financial responsibility, by working for good working conditions and actively counteracting corruption.
Our way of working
Our “Why” is to own and develop companies that contribute to the sustainable development of our environment. We are passionate about developing companies for sustainable growth and have proven processes and tools for this work.
When evaluating potential investments, we always analyse them from a sustainability perspective. In addition to evaluating environmental benefits in the business model, we look at social conditions and the company’s governance, identifying both opportunities and risks.
If we choose to invest in the company, a sustainability plan is defined with clear goals, linked to the business plan. Alder supports companies in their sustainability journey with tools and expertise and with regular follow-up on the board.
Alder has been affiliated with PRI, the United Nations Agency for Responsible Investments since 2012. In the 2020 PRI assessment, Alder achieved once again the highest score (A+) in both assessed modules. We have also been recognised by Real Deals as Future 40: Impact Investment Funds November 2021.
PRI transparency report 2020.
We live as we learn.
We demand a lot from our portfolio companies, but also from ourselves. Our attitude towards customers, employees, investors and the communities in which we are present is characterized by commitment, honesty, transparency and a clear ethical compass.
Our funds are Swedish limited companies.
Download Alder’s Code of Conduct here.
Download Alder’s Responsible Investment Policy here.
Download Alder’s Human Right’s Policy here.
Download Alder’s Sustainability Report 2018 here.
Download Alder’s Sustainability Report 2019 here.
Download Alder’s Sustainability Report 2020 here.
Download Alder’s Sustainability Report 2021 here.
Our portfolio companies contribute to the global goals of sustainable development.
The world’s leaders have committed themselves to 17 Global Objectives by 2030 to achieve four overall goals: abolishing extreme poverty, reducing inequalities and injustices in the world, promoting peace and justice and solving the climate crisis. In order for the goals to be achieved, both countries and companies must try to find solutions and push development forward. Alder’s portfolio companies contributes to several of the global goals.
Goal 2 – No Hunger
With an increasing population and more difficult conditions for agriculture, with water shortage, climate change and deteriorating soil quality, sustainable agriculture and production of nutritious food is an important issue in the future. Satel’s products can be used for more efficient and more environmentally friendly farming, with reduced use of pesticides and higher productivity as a consequence.
Goal 7 – Sustainable energy for all
Access to modern and renewable energy is a prerequisite for meeting several of the world’s challenges. Today fossil energy accounts for 80% of global energy supply and also for a large proportion of greenhouse gas emissions. As well as an increasing demand for energy, new and better solutions are required. Aidon develops smart network technology and services and smart energy measurement, enabling new distribution solutions for renewable energy sources.
Goal 12 – Sustainable consumption and production
Conversion to sustainable consumption and production is necessary to reduce negative impacts on climate, the environment and human health and means that we need to streamline the use of resources.
Umia’s coordinated working methods in installation projects mean major savings in material use and reduced waste.
Goal 6 – Clean water and sanitary
Goal 14 – Marine and marine resources
Pure water is a shortage of resources and one of the major challenges of the future. In addition, life in sea is threatened by emissions. Nordic Water develops water treatment systems for drinking water, sewers and industry. Thanks to clever, compact design, Nordic Waters system also works in densely populated areas.
Goal 13 – Fighting Climate change
Climate change is one of today’s biggest challenges with serious consequences for ecosystems, human security, food production and water supply, as well as increased risk of weather-related natural disasters. Gasmet develops systems for measuring and controlling gas emissions and carbon dioxide levels in the soil. Systems that enable research, control and reduced emissions of gases.
Sustainable Finance Disclosures
Fund Manager Website Disclosures
● Information about Alder’s policies on the integration of sustainability risks in the investment decision‐making process
Alder’s Responsible Investment Policy (available for download here) defines how sustainability risks are integrated in the investment decision process and includes the following:
• Initial assessment – Evaluation of whether environmental benefit in business model meets our investment criteria. The evaluation is conducted with the use of Alder Environmental Impact Assessment tool and the conclusions from this assessment need to be confirmative and included in the indicative bid material. The assessment tool validation is subject to that the potential investment company’s environmental benefit must not be achieved at the expense of another negative environmental or social impact.
• Due Diligence: We perform a sustainability due diligence as a component of the overall due diligence process. The ESG Due Diligence is performed in accordance with the ESG Due Diligence guidelines and Alder’s ESG DD evaluation model, and covers environmental, social and governance topics to identify sustainability related risks and opportunities across the company’s value chain, from raw materials sourcing to customer use of the product or service. The company’s current handling of these risks and opportunities is evaluated and necessary and required and/or recommended action steps are identified.
• Investment decision – Conclusions from the ESG Due Diligence assessment are included in the investment memorandum and taken into account in the investment decision. Any potential red flags identified in the Due Diligence need to be mitigated in order for the investment to be followed through. Recommendations from the Due Diligence, relating to management of sustainability risk as well as potential opportunities, are included in the investment case business plan.
● Information on how remuneration policies are consistent with the integration of sustainability risks
Alder’s remuneration policy provides incentives for positive contributions to Alder’s sustainability agenda and a healthy level of risk. It does not contribute to increased risk taking in terms of sustainability-related risks, and is therefore consistent with the integration of sustainability risk and in line with the EU Sustainable Finance Disclosure Regulation.
Principal adverse sustainability impact statement
● Alder’s policies on identification and prioritisation of principal adverse sustainability impacts and indicators
The potential investment company’s environmental benefit must not be achieved at the expense of another negative environmental or social impact.
In accordance with Alder’s Responsible Investment policy and the sustainability handbook “The Alder Way”, Alder requires all portfolio companies to make an assessment of sustainability related risks and identify material environmental, social and governance topics. Topics that have been identified during the pre-investment processes of initial assessment and ESG Due Diligence are highlighted in this process, in which the companies will also seek the input from key stakeholders. Sustainability impacts are prioritised based on the importance of the topics to stakeholders and the extent of the company’s impact on the topic. The Fund Manager also conducts a materiality assessment for its own operations.
On a portfolio level, Alder follows up on principal adverse sustainability impacts in its sustainability report, in which indicators are reported on portfolio and portfolio company level.
● Description of the principal adverse sustainability impacts
• Climate impact – this is inherently important to Alder given our focus on creating a positive environmental impact. Several of our portfolio companies generate climate change mitigating products or services, but still generate emissions through their own operations. We seek to minimise these emissions.
• Diversity – in particular gender diversity – is a focus adverse impact for Alder. Given the nature of the industries into which Alder’s funds are invested, the gender split is a challenge and an area for improvement.
• Supply Chain working conditions and human rights – for portfolio companies with supply chains in countries with high risk for adverse working conditions or human rights, there is a risk that there are negative impacts on people in, or affected by, the supply chain.
● Actions taken or planned in relation to the principal adverse sustainability impacts
• Climate impact: Scope I, II and material Scope III emissions are measured in all portfolio companies, all of which also take measures to reduce their climate impact. Alder has been a supporter of the TCFD since 2020, and is reporting according to TCFD standards in the Alder sustainability report. The Fund Manager also seeks to minimise its own emissions and compensates for these every year at 2x the annual emissions.
• Diversity: This is addressed at a company level and followed up in the yearly KPI reporting. In the recruitment of board members, Alder has since 2020 required female candidates to be presented for all externally recruited positions. Diversity was also the main topic at the 2020 CEO and Board conference for all portfolio companies.
• Supply chain working conditions and human rights: This is addressed in the Alder Responsible Investment Policy and the Alder Code of Conduct. The portfolio companies have responsibilities throughout their value chains, which means that they shall assess and act upon risks up-stream in their supply chain as well as down-stream towards their customers to a reasonable extent, in compliance with the UN Guiding Principles for business and Human Rights.
● Summary of Alder’s engagement policies (if applicable)
● Adherence to responsible business conduct codes and internationally recognised standards
Alder is a PRI signatory since 2012, adhering to its principles for responsible investments.
Alder evaluates portfolio companies’ environmental impact according to the frameworks of the UN Sustainable Development Goals and the Planetary Boundaries framework from the Stockholm Resilience Centre.
Alder adheres to the UN Global Compact principles and the UN Guiding Principles for Business and Human Rights, through which it seeks to ensure that the UN Declaration of Human Rights and ILO core conventions are adhered to in all portfolio companies and their supply chains.
Alder Fund I and Alder II Website disclosures
Article 9 – Sustainable investment objective
● Description of the sustainable investment objective
Alder’s funds have sustainability as their overall goal.
Our objective is to own and develop companies that contribute to the sustainable development of our environment.
We invest in companies that through their business model deliver an environmental benefit, such as reduced consumption of energy and resources, reduced emissions to air and water and reduced waste, contributing to the UN Sustainable Development Goals.
● Explanation on how the objective is to be attained
We only invest in companies whose operations have a positive contribution to the environment.
• Identifying possible target companies – The starting point of our proprietary process for identifying investment opportunities is sustainable industries or sub-industries, with technologies or solutions which can contribute to environmental benefits. The Planetary Boundaries framework from the Stockholm Resilience Centre1 and the UN Sustainable Development Goals are used as a tool to identify industries of interest.
• Initial assessment – Alder evaluates whether environmental benefit in the business model meets our investment criteria. The evaluation is conducted with the use of Alder Environmental Impact Assessment tool and the conclusions from this assessment need to be confirmative and included in the indicative bid material. The assessment tool validation is subject to that the potential investment company’s environmental benefit must not be achieved at the expense of another negative environmental or social impact.
● Methodologies used to assess, measure and monitor the impact of the sustainable investments
• When a company is acquired by Alder, it will be introduced to Alder’s portfolio sustainability requirements and be expected to comply with them. The internal ESG handbook, “the Alder Way”, outlines key tools, frameworks and responsibilities, and includes a checklist for progress against requirements.
• The company will appoint a person to be responsible for sustainability. This sustainability ambassador will be the contact point for Alder’s sustainability efforts and will participate in bi-annual portfolio company sessions.
• The company will make an assessment of sustainability related risks and opportunities and identify material environmental, social and governance topics. Based on this materiality assessment, the companies will define strategic goals and action plans and ensure management commitment and board approval to these. The sustainability strategy should be integrated within the overall corporate strategy of the portfolio company.
• Progress against the sustainability plan is monitored through regular Board follow-up.
• The company will regularly report their sustainability performance to Alder with quarterly priority topic progress updates and an annual ESG scorecard which covers environmental, social and governance KPI:s.