Sustainability

Our world is facing major challenges with climate change, declining biodiversity, limited resources and a growing population. Alder invests in companies that can contribute to solutions to the challenges we face and that can create value in a changing world.

Alders funds have sustainability as an overarching goal. The funds are classified under Article 9 of the EU Regulation on Sustainability-related Disclosures in the Financial Services Sector (SFDR).

We only invest in companies whose activities make a positive contribution to 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 economic responsibility, including promoting good working conditions and actively combating corruption.

Anchor: working

OUR APPROACH

Our world is facing major challenges with climate change, declining biodiversity, limited resources and a growing population. Alder invests in companies that can contribute to solutions to the challenges we face and that can create value in a changing world.

When evaluating potential investments, we always analyse them from a sustainability perspective. In addition to evaluating the environmental benefits of the business model, we look at social conditions and corporate governance, identifying both opportunities and risks.

If we choose to invest in the company, we define a sustainability plan with clear objectives linked to the business plan. Alder supports the companies in their sustainability work with tools and expertise and with regular follow-up by the board.

Alder are affiliated with PRI, the UN body for responsible investment, since 2012. In the 2020 PRI assessment, Alder again received the highest possible rating (A+) in both categories assessed. We have also been recognized by Real Deals as one of the Future 40: Impact Investment Funds November 2021.

Download the PRI transparency report 2021 here.

We live as we learn

We set high standards for our portfolio companies but also for ourselves. Our approach to clients, employees, investors and the communities in which we operate is characterised by commitment, honesty, transparency and a clear ethical compass.

Our funds are Swedish limited companies.

Anchor: Hallmark

SUSTAINABILITY REPORT

Alder produces an annual Sustainability Report summarising the state of our business.

OUR CONTRIBUTION

Anchor: contributions

Our portfolio companies contribute to the Global Goals for Sustainable Development.

World leaders are committed to 17 Global goals by 2030, to achieve four overarching goals: eradicating extreme poverty, reducing inequality and injustice in the world, promoting peace and justice, and solving the climate crisis. Achieving these goals will require both countries and businesses to help find solutions and drive progress. Alders portfolio companies contribute to several of the global goals.

Some examples

Goal 2 - No hunger

With a growing population and more difficult conditions for agriculture, with water scarcity, climate change and deteriorating soil quality, sustainable agriculture and the production of nutritious food is a key issue for the future. Satels products can be used for more efficient and environmentally friendly agriculture, resulting in reduced pesticide use and higher productivity.

Goal 6 - Clean water and sanitation and Goal 14 - Oceans and marine resources

Clean water is a scarce resource and one of the major challenges of the future. In addition, our oceans and the life in them are threatened by pollution. Nordic Water develops water purification systems for drinking water, wastewater and industry. Thanks to smart, compact design, Nordic Water's systems work even in densely populated areas.

Goal 7 - Sustainable energy for all

Access to modern and renewable energy is essential to meet many of the world's challenges. Today, fossil fuels account for 80% of global energy supply and also for a large share of greenhouse gas emissions. Moreover, as energy demand increases, new and better solutions are needed. Aidon develops technologies and services for smart grids and smart metering, and enables new distribution solutions for energy from renewable sources.

Objective 12 - Sustainable consumption and production

Shifting to sustainable consumption and production is necessary to reduce negative impacts on climate, the environment and human health, and means that we need to make more efficient use of resources.

Umias coordinated approach to installation projects means significant savings in material use and reduced waste.

Goal 13 - Combating climate change

Climate change is one of the greatest challenges of our time, with serious implications for ecosystems, human security, food production and water availability, and with an increased risk of weather-related natural disasters. Gasmet is developing systems to measure and monitor gas emissions and carbon dioxide levels in the soil. Systems that enable research, monitoring and reduction of gas emissions.

During our ownership, we develop our portfolio companies into something truly future-proof and sustainable.

Eva Normell, Sustainability Officer

Anchor: sustainable

SDFR at Alder

Increased transparency on sustainability

The Sustainable Finance Disclosure Regulation (SFDR) is the EU's first regulation aimed at redirecting capital flows towards sustainability. The SFDR was introduced to increase transparency on sustainability in the financial markets and thereby prevent so-called greenwashing. 

The SFDR requires the asset manager to be transparent about the level of sustainability of its funds, classifying them into one of three distinct categories based on their own sustainability expectations and requirements: 'not at all green' (Article 6), 'light green' (Article 8) promoting 'environmental or social attributes' and 'dark green' (Article 9), with sustainable investment as the main objective.

According to the EU regulation, a sustainable investment is one that contributes to environmental or social progress while being managed responsibly and not harming its environment.

The SFDR requires asset managers to be transparent about how they integrate sustainability into their strategies and objectives, manage sustainability risks and evaluate the impact of their activities.

At Alder , sustainability is the very foundation on which we built our business. We have high ambitions and all our funds are categorised as Article 9. Our belief is that sustainability and long-term financial value creation go hand in hand.

Our belief is that resilient companies that are well positioned will create long-term value by incorporating sustainable principles. We invest in companies that prioritise sustainability and strive to make our world a better place for future generations.

Below we present and report on our funds


Fund: Alder II

Vintage year: 2018

Fund size: 1527,8 MSEK

Investment criteria:
To acquire and develop companies that will benefit from the green transition and contribute to the long-term health and sustainability of the environment.

Market:
Mainly the Nordic countries with a focus on smaller medium-sized companies.

Investment objective:
To own and develop companies that contribute to sustainable development from an entirely environmental perspective.

We invest in companies whose business model delivers environmental benefits, such as reduced energy and resource consumption, reduced air and water emissions and reduced waste, contributing to the UN Sustainable Development Goals.

Current status:
The Fund will not make further platform investments. The remaining available funds and investments will be used for acquisitions within the existing portfolio.


Fund: Alder I

Vintage year: 2010

Fund size: 1 116,8 MSEK

Investment criteria:
To acquire and develop companies that will benefit from the green transition and contribute to the long-term health and sustainability of the environment.

Market:
Mainly the Nordic countries with a focus on smaller medium-sized companies.

Investment objective:
To own and develop companies that contribute to sustainable development from an entirely environmental perspective.

We invest in companies whose business model delivers environmental benefits, such as reduced energy and resource consumption, reduced air and water emissions and reduced waste, contributing to the UN Sustainable Development Goals.

Current status:
The Fund will not make further platform investments. The remaining available funds and investments will be used for acquisitions within the existing portfolio.

Alder is looking for companies that are ready to take the next step.

We are always on the lookout for companies with the drive and desire to develop. Our investments focus on established companies with profitable growth and a turnover of between SEK 100 and 750 million, as well as additional acquisitions, which may be smaller.

Anchor: Hallmark

WHISTLEBLOWING SERVICE

We want to do the right thing - our whistleblowing service

Our long-term success is based on our ethical guidelines, which are set out in our Code of Conduct.

You have an important role to play in raising the alarm if you suspect something that violates the ethical guidelines. This gives us an opportunity to prevent and correct if something has gone wrong. In the first instance, we encourage you to report to a partner. If you feel you cannot be open with your information, we offer an opportunity to report your concerns anonymously at https://report.whistleb.com/sv/ alder

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