Committed to continuously improving our responsible business practices
As an active owner, we are committed to promoting responsible business practices in our portfolio companies and managing our real estate investments with a long-term perspective. CapMan wants to be a role model for its portfolio companies, and responsibility plays a key role in CapMan’s own business activities. Our commitment to responsibility is reflected in our values: high ethics, active ownership and dedication, and our core purpose of building successful businesses contributing to the enrichment of the society.
ESG issues are considered throughout the investment period
We believe that we can create long-term value by incorporating environmental, social, and governance (jointly "ESG") considerations into our funds’ decision-making processes and ownership activities. When making investment decisions, we aim to take ESG issues into consideration in screening transactions, due diligence, and final decision-making. The scope of our ESG analysis varies depending on the sector, size, and geography of the company in question.
During our ownership, we aim to create long-term sustainable value by managing not only the financial, but also the non-financial issues affecting our portfolio companies and real estate properties. CapMan requires all its funds’ portfolio companies to comply with applicable laws, rules, and regulations. In addition, each portfolio company is responsible for drawing up a programme to ensure that good corporate governance principles are followed. CapMan takes immediate action if any critical ESG issues arise concerning portfolio companies during our ownership.
In the real estate area, our primary ESG focus is on environmental issues, as we see major potential in improving the environmental performance of our property investments. As a result, environmental considerations are integrated into the daily management of the assets of our real estate funds, and refurbishment plans are drawn up for all our properties. We monitor the regulatory environment continuously to ensure that our properties are up-to-date with international standards. We currently have three projects on target to win LEED (Leadership in Energy and Environmental Design) certification. Where appropriate, we apply for environmental certifications for our real estate investments.
Transparent and responsible fund manager
We have approximately €3.1 billion of capital under management in our funds. The majority of our fund investors are pension funds, which have millions of individual beneficiaries. The success of our funds’ investment operations has a direct effect on the returns of our investors and their ability to service their pension liabilities.
CapMan Plc is one of the few listed private equity fund managers. As a result of our listed status, we pursue transparent communications practices towards our shareholders, fund investors, and the general public. CapMan Plc’s corporate governance model follows the Finnish Corporate Governance Code for listed companies.
We are actively involved in various industry associations to promote the development of the private equity industry and enhance international cooperation. CapMan is a member of the European Private Equity and Venture Capital Association (EVCA), as well as several local industry associations. We are committed to complying with the EVCA Code of Conduct and due consideration is also given to other non-binding EVCA and national association guidelines, and recommendations, such as Openness and Transparency Recommendations.
Developing a more systematic ESG approach
We developed a more systematic approach to managing ESG issues at CapMan during autumn 2011. The primary goal was to develop a responsible investment statement highlighting CapMan’s current approach towards ESG. We finalised our responsible investment statement during early 2012 and it can be found here. Our primary priorities for 2012 include further developing our ESG approach and increasing communications and cooperation with our stakeholders on these issues.