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Sustainable Investment Policy

General

Within the built world domain, Caranto aims to invest in companies promoting circular economy and reducing carbon footprint with new technologies and innovations. The solutions can enhance health, sustainability of the environment, improve human safety, and reduce emissions related to built world. Through these investments, Caranto supports both Finland and EU goal of becoming carbon neutral.

ESG matters over the lifetime of an Investment

ESG matters are acknowledged at an early stage in any potential investment opportunity and are addressed and monitored throughout the Fund’s ownership of an Investee Company. Essential pre-investment, post-investment and value creation as well as exit phase considerations and work are described below.

Pre-investment phase

An analysis of the ESG risks is part of our due diligence process. In the due diligence process, we will utilize our ESG Due Diligence Questionnaire which has been drawn up to cover the ESG areas which we believe are key to understanding the ESG profile of a potential Investee Company. The observations and conclusions of the ESG due diligence review are presented in an investment memorandum for an initial and a follow-on investment.

Post-Investment and value creation phase

After an investment, a discussion on ESG matters is a part of the Management Company’s setup process with the Investee Company. Each Investee Company develops its own corporate responsibility policy, while we provide support to that process. Reviewing ESG matters is part of Investee Companies boards’ work and ESG matters are discussed in the board meetings at least once a year. We shall also facilitate sharing of ESG related knowledge and best practices amongst the Investee Companies.

We expect that the Investee Companies conduct their activities according to the laws and regulations they are obliged to. We believe that good corporate governance is the foundation of effective corporate management and we support the Investee Companies to establish and further develop good governance policies and processes.

We discuss with each of the Investee Companies of their ESG targets, key performance indicators (KPI) and development and ask for regular ESG reports. We report to the Limited Partners on our ESG strategy, development and KPIs on a regular basis.

Exit phase

At Exit phase, Caranto carefully evaluates the buyer profile, transaction model and fair treatment of various shareholders and investors (also employees, option holders etc.).

CONTACT US

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Caranto Capital

Mail: team@www.caranto.vc
Phone: +358407749259
Address: Maria 01
Lapinlahdenkatu 16
00180 Helsinki, Finland