Catalysing transformation beyond capital
We acknowledge our responsibility as a majority investor. We see this position as an ideal platform to promote and progress the sustainability agenda as a contributor to solid financial returns.
At CataCap, we actively promote responsible behavior and sustainability as an integral part of our value creation. We employ the catalyst approach to value creation in our portfolio companies. We do this by setting standards and minimum requirements and help facilitate sustainability initiatives fostered in our portfolio companies to ensure that such initiatives are relevant to the company and society, embraced by the staff and fully embedded in the management processes.
Our portfolio companies are all part of local communities and the world around us, and we know that good leadership and financial growth go hand in hand with sustainable and responsible behavior. That’s why we acknowledge the link between strengthening our companies’ performance in aspects concerning environment, social and governance (ESG) and the creation of financial returns, competitiveness, and long-term value creation of the businesses.
Because it’s not just about doing good. It’s doing good business.
Our ESG approach
As of 2021, we have adopted a new Responsible Investment Policy aimed at actively addressing the risks and opportunities related to ESG aspects in our portfolio companies. Our Responsible Investment Policy covers the full investment lifecycle and serves as guidance for CataCap’s role as investor and active owner. Our Responsible Investment Policy and ESG Framework is based on well-known and acknowledged frameworks such as Sustainability Accounting Standards Board (SASB) and Task Force on Climate-Related Financial Disclosures (TCFD). In continuation of the adoption of our Responsible Investment Policy, we have become a signatory of the United Nations-supported Principles for Responsible Investment (PRI).
As an active owner, we invest to be the catalyst of positive transformation of businesses from within. Our systematic operational approach create value for businesses, people and investors that last beyond our time as owners.
In the acquisition phase, we ensure that ESG factors are a thorough part of any investment analysis and decision making-process before an acquisition is made.
During the ownership phase, we apply an integrated hands-on approach to unlock potential and continuous development in ESG factors and we do so by working shoulder-by-shoulder with management teams. All the while making sure that performance, progress and improvements are documented for future owners and as well as for our own fund investors.
Integrating ESG
into all investment decisions
ESG risks and opportunities are an integrated part of our deal screening process and investment decision. During this process, we will evaluate the target company’s ESG efforts and performance and this due diligence will be subject to the Investment Committee assessment in the final investment evaluation.
We aim to invest in companies where we have identified an opportunity to help improve ESG performance as part of our overall value creation approach or in companies with a business model already contributing positively to the ESG agenda.
Supporting
our portfolio companies
We aim to empower and support our portfolio companies to actively work on improving diversity and ESG performance as part of our overall long-term value creation-approach. Further, we seek to support initiatives fostered in our portfolio companies.
This also includes organizational and leadership development focusing on enhancing organizational health as well as the formulation of a development plan for each portfolio company aimed at integrating ESG issues relevant to the specific industry or company.
We acknowledge that errors and mistakes may happen – also when working with aspects concerning environment, social and governance. To us, the important part is how you correct them and embrace the learning opportunity. We believe that errors and mistakes provide valuable input, and we consider it crucial to learn from possible errors and mistakes as part of our value creation.
Value-creation beyond our time
as owners
We care about societal impact. And we know investors do too. Our systematic operational approach for value creation catalyses growth and creates value for our portfolio companies that endure beyond our time as owners. We have a clear ambition that by the end of our investment lifecycle, our portfolio companies will have developed and improved on ESG performance.
Further, we know how important it is that the journey and the progress is documented. This is one of the reasons why – subject to an implementation period – our portfolio companies become members of United Nations Global Compact. Our portfolio companies will actively work with the ten principles (based on materiality) and report annually on their progress in a COP-report (communication on progress).
Our commitments
CataCap is a licensing organisation of the SASB Standards, which is applied as part of our ESG Framework.
We are also a proud signatory of Principles for Responsible Investment (PRI) and are committed to the principles of the United Nations Global Compact and our portfolio companies are – or will become – members of United Nations Global Compact.
CataCap is also a member of Active Owners Denmark (formerly DVCA) and complies with existing ethical guidelines for responsible ownership.
Sustainable Finance Disclosure
You can read about our compliance with SFDR here
