We invest only in companies that have the potential to create a significantly more sustainable, resilient, healthy and fair food system. Responsible investing means that we thoughtfully evaluate, manage and monitor the ESG matters and sustainability risks in all stages of the investment process. We value human rights and equal opportunity for all. We do not invest in alcohol, tobacco or other harmful substances, or in companies conducting illegal activities or operating unethically. Many aspects of responsibility are universal, but investing in food does require some special considerations. We clarify our take on it here.
Analysis of the ESG risks and opportunities is part of our due diligence process. We also evaluate the sustainability risks and possible adverse effects of changes in the operating environment to future profitability. The evaluation is done on case-by-case basis focusing on the matters that are relevant to each company and its operating environment. We review especially the aspects of (i) environmental impact, especially the impact on climate and biodiversity; (ii) sustainability risks associated with changes in the environment; (iii) impact on human health, including product safety and consumption patterns; (iv) social and societal impact; (v) corporate governance. We agree on specific ESG-development topics and KPIs already before investment.
Discussions and support on ESG and sustainability matters are part of our work with portfolio companies. We also require each company to develop their own corporate responsibility policy and an ESG-development plan. In the development of such a plan, we put special focus on environmental and food safety matters such as (i) soil and land usage; (ii) neutral or positive effect on climate change; (iii) resource efficiency, including the source and use of energy; (iv) water usage and contamination; (v) waste management; (vi) compliance with local regulation on food products; (vii) resilience in changing environment and mitigation of sustainability risks. We expect that our portfolio companies conduct their activities according to the laws and regulations they are obliged to, do not use aggressive tax planning and pay their income taxes to the country where the value of the business is created.
Management Company and General Partner
The ESG policies and processes are part of our own internal development goals too. ESG matters are on agenda at the board meetings of the General Partner and the Management Company at least once a year. The boards review the state, progress and development needs of ESG matters in portfolio companies and of the Management Company itself.The Limited Partner Advisory Committee receives an ESG-report and reviews our Responsible Investment Policy and ESG matters every year.