Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Diversity
• Climate Change
• Supply Chain Management
• Human Rights
• UN Sustainable Development Goals

Environmental Achievements

• Kjell & Company reduced annual environmental impact by an estimated 276 tons of paper by discontinuing bi-annual product catalogs.
• Kjell & Company launched a packaging initiative using 70% recycled plastic and 100% recycled paper.
• Lagkagehuset reduced yearly waste levels to approximately 11%, resulting in a significant positive impact on fund performance.

Social Achievements

• FSN Funds increased the number of employees by 33% in 2018.
• 1 out of 3 new investment team members in 2018 were female.
• 2 out of 3 new executive advisors in 2018 were female.
• Sneakersnstuff collaborated with local charities, donating gently used sneakers and clothes.
• Kari Traa's campaigns reached over 3 million views, positively impacting women's health and self-esteem.

Governance Achievements

• Implemented a standard electronic anti-corruption training program.
• Established a new and improved standard framework across portfolio companies and their supply chains.
• Introduced an annual ESG award among portfolio companies.

Climate Goals & Targets

Environmental Challenges

• Understanding and adoption of climate risk.
• Gender imbalance within the firm and the private equity industry.
• Fraud discovered in Gram Equipment.
• Ensuring complete alignment regarding ESG goals throughout the organization.
• Identifying relevant ESG KPIs across diverse jurisdictions and industries.

Mitigation Strategies

• Introduced a standard climate module in the ESG Framework inspired by the Taskforce on Climate-related Financial Disclosures (TCFD).
• Set clear targets for improvement in gender diversity, unconscious bias training, cooperation with #HunSpanderer, and implementing parental leave rights.
• Filed an insurance claim and received full payment for the fraud in Gram Equipment.
• Developed individualized ESG strategies for each portfolio company, setting short and long-term goals and identifying relevant KPIs.
• Finding KPIs that can be incorporated into other KPIs, driving desired behavior and integrating ESG into operations.

Supply Chain Management

Supplier Audits: Varied, see individual company reports

Responsible Procurement

• Supplier Code of Conduct
• ESG due diligence
• Anti-corruption training

Climate-Related Risks & Opportunities

Transition Risks

• Rapid policy changes (e.g., carbon emission taxes)
• Changes in consumer and employee preferences

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: UN PRI, UN SDGs, TCFD

Certifications: ISO 14001 (some portfolio companies)

UN Sustainable Development Goals

• Goal 3 (Good Health and Well-being)
• Goal 8 (Decent Work and Economic Growth)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through various programs and policies.

Awards & Recognition

• FSN Capital ESG Award (Kjell & Company)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Supply Chain Responsibility
• Employee Well-being

Environmental Achievements

• Reduced plastic waste by 97% (127 tons) at Kari Traa.
• Improved shipping efficiency by 37% at Kari Traa, reducing packaging materials and carbon emissions.
• Portfolio Companies in FSN Funds IV and V submitted their first greenhouse gas emissions reports.
• Mørenot acquisition of NetRobot, a solution potentially removing 50,000 tons of annual CO2 emissions from the Norwegian fish-farming industry.

Social Achievements

• Increased number of employees in Portfolio Companies by 8% in 2019.
• 1 of 3 new investment team members in 2019 were women.
• Rolled out unconscious bias training for all FSN Capital employees.
• Improved employee satisfaction scores in 2019.
• Launched Team First initiative to foster trust and collaboration.

Governance Achievements

• Updated Responsible Investment Policy to include environmental exclusion criteria.
• Implemented FSN Capital Governance Framework in all Portfolio Companies.
• 100% of FSN employees retrained in Code of Conduct and anti-bribery.
• 100% of Portfolio Companies implemented FSN standard Code of Conduct, Supplier Code of Conduct, and Whistleblower policy.
• Saferoad awarded FSN Capital’s 2019 ESG Award for best practice in ESG implementation.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on business models and value chains.
• Supply chain disruptions due to extreme weather events.
• Lowest employee satisfaction results since the inception of the firm in 2018.
• Fraud discovered in Gram Equipment in 2018.

Mitigation Strategies

• Developed and rolled out a climate assessment tool (FSN Capital Climate Module).
• Conducted climate due diligence in selected transactions.
• Implemented actions to improve communication, trust, and celebrate victories to improve employee satisfaction.
• Increased focus on W&I insurance.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Supply chain disruptions

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Climate adaptation projects

Reporting Standards

Frameworks Used: TCFD, UN Global Compact, PRI

UN Sustainable Development Goals

• Goal 5
• Goal 8
• Goal 13
• Goal 16

FSN Capital links all Portfolio Companies to relevant SDGs where they are positioned to contribute.

Sustainable Products & Innovation

• NetRobot (Mørenot)
• Kari Traa's new baselayer packaging

Awards & Recognition

• Saferoad awarded FSN Capital’s 2019 ESG Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Supply Chain Responsibility
• Employee Well-being

Environmental Achievements

• Obton Group investment (a leading European developer of solar power parks), aiming to install solar capacity equivalent to the power needs of ~1.5 million households by 2025.
• Purchased carbon offsets for FSN Capital Partners’ 2019 and 2020 emissions.
• Mørenot changed fishnet drying process, reducing energy consumption by 25% and drying time by 50%.
• Several portfolio companies improved GHG emission reporting.

Social Achievements

• Launched "Team First" initiative, resulting in the highest ever 360 review (employee satisfaction) score.
• Improving gender diversity at FSN Capital Partners.
• Implemented Winningtemp in several portfolio companies to monitor employee engagement.
• Holmbergs created a customer-oriented webpage addressing sustainability.

Governance Achievements

• Launched first ESG-linked Credit Facility, linking interest rate to ESG performance.
• Implemented standard ESG procedures and requirements for all stages of the investment cycle.
• Developed mandatory ESG policies for portfolio companies.
• Annual FSN Capital ESG Award.

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic impacting operations and employee well-being.
• Supply chain disruptions due to extreme weather events.
• Increased regulatory pressure on ESG reporting and performance.
• Data limitations in GHG emission reporting.

Mitigation Strategies

• Implemented Covid-19 countermeasures in portfolio companies.
• Developed a high-level climate change due diligence approach.
• Developed ESG onboarding programs for new portfolio companies.
• Improved GHG emission reporting systems and data collection.

Supply Chain Management

Supplier Audits: 20 supplier audits performed by EET in 2020; other portfolio companies performed varying numbers of audits.

Responsible Procurement

• Supplier Codes of Conduct implemented across portfolio companies.
• ESG considerations integrated into supplier selection.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events disrupting supply chains and operations.
• Heatwaves impacting worker productivity.

Transition Risks

• Increased regulatory pressure on emissions and sustainability.
• Shifting market demand towards sustainable products.

Opportunities

• Increased demand for sustainable products and services.
• Development of energy-efficient technologies.

Reporting Standards

Frameworks Used: UN PRI, EU Non-financial Reporting Directive (NFRD), Task Force on Climate-related Financial Disclosures (TCFD), EU Taxonomy

Certifications: ISO 14001, ISO 9001, ISO 45001, ISO 27001, IATF

UN Sustainable Development Goals

• SDG 5 (Gender Equality)
• SDG 8 (Decent Work and Economic Growth)
• SDG 13 (Climate Action)
• SDG 16 (Peace, Justice and Strong Institutions)

FSN Capital's initiatives contribute to these goals through various programs and investments.

Sustainable Products & Innovation

• Development of energy-efficient products and services across several portfolio companies.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance & Compliance

Environmental Achievements

• Reduced direct and indirect emissions (scope 1 and 2) by 20% compared to 2020.
• 100% of portfolio companies report GHG emissions.
• Set science-based emissions targets for FSN Capital, validated by the Science Based Targets initiative (SBTi).

Social Achievements

• All portfolio companies assigned an ESG Officer.
• Launched the FSN ESG Officer Network to facilitate knowledge sharing.
• Increased the number of portfolio companies setting up electronic whistleblower channels and rolling out ESG e-Learning platforms.

Governance Achievements

• Updated the FSN Capital ESG Strategy Framework to incorporate double materiality.
• Raised an ESG-linked subscription facility for Fund VI.
• Implemented the FSN Capital Governance Framework in all portfolio companies.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to Covid-19.
• Difficulty in setting science-based targets for portfolio companies due to regular turnover in investments.
• Challenges in achieving gender diversity in some portfolio companies and across the firm.

Mitigation Strategies

• Developed standard onboarding programs and frameworks for value creation.
• Collaborated with the SBTi to develop tailored guidance for private equity firms on setting science-based targets.
• Partnered with headhunters specialized in recruiting female candidates, implemented unconscious bias training, and launched mentoring programs.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• ESG due diligence of suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Investment in companies contributing to climate change mitigation and adaptation

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC, UN PRI, EU SFDR, EU Taxonomy

Certifications: ISO 14001, ISO 9001, IATF 16949

UN Sustainable Development Goals

• SDG 5
• SDG 8
• SDG 13
• SDG 16

FSN Capital's initiatives contribute to these goals through various programs and policies related to gender equality, job creation, climate action, and anti-corruption.

Environmental Metrics

ESG Focus Areas

• Governance
• Decarbonization
• ESG Priorities

Environmental Achievements

• 9 portfolio companies committed to SBTi, 4 with validated Science-based Targets
• Reduced Scope 1, 2 and 3 emissions by 41% from baseline; reduced Scope 1 and 2 by 72% from baseline (Active Brands)
• Polytech implemented plant-based raw material in products to reduce GHG emissions by 21% per output unit
• Fibo reduced electricity usage per kWh/m2 produced by 3% and acquired renewable electricity certificates covering 100% of their energy consumption

Social Achievements

• Winning Together initiative to create a diversity, equity, and inclusion (DE&I) strategy
• Increased FSN Capital employees in 2023 (from 72 to 79)
• 24,682 people employed by FSN portfolio companies (FTEs), 24% increase from 2022

Governance Achievements

• Introduced standard ESG policies implemented in all portfolio companies
• All portfolio companies establish ESG priorities
• All portfolio companies adopt and implement ESG policies with clear governance
• Sustainability-linked financing facility launched

Climate Goals & Targets

Environmental Challenges

• Limited availability of hybrid and electric cars slowing down fleet transition (BoldR)
• High corruption and bribery risks in key markets (e.g., China) (Holmbergs, IMPREG)
• Supply chain disruptions due to increased demand for sustainable materials (InstallatørGruppen)
• Securing a supplier for fully green sanitary products proved challenging (Swash Group)

Mitigation Strategies

• Prioritize electric cars in replacement process of existing fleet by 25%/year (BoldR)
• Implemented supply chain management system; identified suppliers to be audited and started auditing (Firesafe)
• Established a clear guide for companies to define taxonomy-eligible revenue (InstallatørGruppen)
• Integrated the Water Label into our own brands and conducted a customer survey to identify desired products (Swash Group)

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct (SCoC)
• ESG due diligence
• Risk-based approach

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Supply chain disruptions

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Green Transition investments
• Decarbonization initiatives

Reporting Standards

Frameworks Used: GRI, TCFD, EU Taxonomy, CSRD, SFDR, UN PRI, UN Global Compact

Certifications: ISO 14001, ISO 27001, ISO 9001, IATF 16949, PEFC, FSC, Oekotex, Bluesign

UN Sustainable Development Goals

• Goal 5
• Goal 8
• Goal 13
• Goal 16

Initiatives contribute to these goals through various programs and policies

Awards & Recognition

• Two Private Equity Wire ESG Awards
• World Economic Forum’s New Champions Award