Responsible investment

Vaaka Partners is a full member of the Finnish Venture Capital Association (FVCA) and complies with the rules and guidelines issued by FVCA. In reporting to the investors, Vaaka Partners follows the fund agreements and the Investment Reporting Guidelines issued by Invest Europe. Vaaka Partners complies with the International Private Equity and Venture Capital Valuation Guidelines in the valuation of the portfolio companies.

 

Vaaka Partners is registered with the Financial Services Authority in compliance with the Alternative Investment Fund Manager’s act (162/2013).

 

Vaaka Partners follows the UN Principles for Responsible Investment in its investment activities and aims to improve long-run risk-adjusted returns from its investments by taking into account ESG-factors (environmental, social, governance). ESG matters are considered both when preparing new investment cases as well as during Vaaka’s ownership period. We believe, that this lowers the risks related to investments and improves investment returns.

 

In the due diligence process, in preparation of making a new investment, ESG factors are identified and in the most crucial ones, external advice is sought, e.g. regarding environmental risk assessments. ESG matters are taken into account when making the investment decision. Those matters that are deemed most relevant, with potential for either risk mitigation or increased returns, are included in the action plan for the first 100 days of ownership.

 

During Vaaka’s ownership, the core ESG matters are worked through with the company management and board. Vaaka Partners’ Corporate Governance Guide directs the board to review ESG matters at least annually and, for the most relevant factors, to ensure the existence of a development plan, the progress of which is monitored by the board.

 

The lead partner for a deal or an investment is responsible for taking into account ESG matters appropriately. Vaaka Partners’ CFO is responsible for ESG reporting and development efforts related to responsible investment.