In Vaaka Partners, we embrace sustainability in our work. We integrate sustainability perspectives into the investment process and active ownership, as well as, we build business champions in long-term view by ensuring that sustainability becomes a fundamental part of the companies’ business. We believe, that this lowers the business risks related to investments, improves investment returns and has a positive impact to society.
How we manage sustainability
National legislation and international norms
National legislation and international norms are the starting point when defining sustainability. Vaaka Partners follows the UN Principles of Responsible Investment (PRI) meaning that we lead our resources according to six principles of responsible investment. When defining sustainability, we take into account the UN Global Compact Corporate Principles. We aim to adopt, support and implement the basic values of the principles which are related to human rights, occupational principles, environmental issues and anti-corruption.
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’ Policy for Responsible Investment
We have a Policy for Responsible Investment (“Vaaka PRI”) and a written approach to sustainability in our investment operations. The sustainability policy and approach how sustainability is taken account in different phases of investing, are described more closely in PRI.
Sustainability during investing and value creation
In Vaaka Partners, sustainability factors are considered when preparing new investment cases as well as during ownership period. We assess sector- and company related material sustainability factors, and consider potential adverse sustainability impacts of our investment decisions as well as sustainability effects that might otherwise emerge during Vaaka's ownership.
When preparing new investments, we acknowledge the Principles for Responsible Investment and sustainability factors as a part of the investment process. Sustainability factors are analyzed at different investment stages and finally in the invest committee approval. In the due diligence process, sustainability factors are identified and with the most crucial ones, external advice is often sought, e.g. regarding environmental risk assessments.
Sustainability factors 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. Vaaka Partners’ Corporate Governance Guide directs the board to review sustainability matters 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 is responsible for following the Vaaka PRI and written approach to sustainability appropriately.
Principal Adverse Impacts
Vaaka Partners considers principal adverse impacts of its investment decisions on sustainability factors and monitors them through investment cycle (Regulation on sustainability-related disclosures (EU) 2019/2088 Article 4). Sustainability factors mean environmental, social and employee matters, respect for human rights, anti‐corruption, and anti‐bribery matters (Regulation on sustainability-related disclosures (EU) 2019/2088 Article 2 (24)). You can find Vaaka Partners' principal adverse Impact statement in this link.
Our Sustainability team consisting of Taija Heittola (Manager, Funds & Sustainability) and Antti Salmela (Partner), drives and monitors the implementation of PRI and approach to sustainability across the firm. Sustainability team communicates to Vaaka team the most recent changes is sustainability legislation and other relevant sustainability related topics.