CapMan Nordic Infrastructure I Fund has completed its first GRESB fund assessment for 2021. GRESB is a global ESG benchmark to measure ESG performance among real estate and infrastructure investors. The fund received three stars out of five and is ranked 13th out of 25 European diversified private equity funds. Overall, the fund performed in line with the GRESB and peer group average. The fund received an overall GRESB score of 76/100, in line with the GRESB average of 77 but above the benchmark average of 73.
Its management score was 29/30 (GRESB and benchmark average 27). The performance score was 47/70 compared to a GRESB average of 50 and benchmark average of 46. The performance score reflects the weight of the assets of the fund, and thereby Norled’s pronounced impact.
The fund has performed ahead of its peers in especially ESG risk management, ESG reporting and stakeholder engagement. ESG leadership is the area demonstrating highest improvement potential.
In terms of individual assets, Nydalen Energi and Loviisan Lämpö performed best in their peer group, receiving first and second place out of six district heating providers in total. Norled was fourth out of six other privately held European other transport companies. Valokuitunen was seventh out of 12 European fibre networks companies.
The assessment provides helpful information for the CapMan Infra team as well as for portfolio company management regarding what areas to focus on in terms of ESG management of the fund’s assets.
About CapMan Infra’s ESG approach
The fund implements an integrated ESG strategy. Torborg Chetkovich, Partner at CapMan Infra, has overall responsibility for ESG matters within CapMan Nordic Infrastructure Fund I. The investment teams are responsible for reporting any ESG issues during the due diligence phase of transactions. The responsibility then sits with the Investment Committee to ensure that the necessary ESG issues have been identified, and that concrete steps are in place for issues that need to be rectified.
The asset management team is then responsible for ensuring that the necessary actions are implemented in cooperation with the portfolio company. When taking over the portfolio company it is important to dedicate a responsible person for following up the ESG activities identified during the DD phase and the activities implemented in the business plan, including the 100-day plan. It’s also key that this person together with the whole management team in the company proactively identifies new risks and opportunities related to ESG.
The CapMan Group wide ESG policy is publicly available, while the CapMan Infra specific approach to implementing the ESG policy and strategy is internal.
GRESB is a mission-driven and industry-led organization that provides actionable and transparent environmental, social and governance (ESG) data to financial markets. The organisation collects, validates, scores and benchmarks ESG data to provide business intelligence, engagement tools and regulatory reporting solutions for investors, asset managers and the wider industry.
Learn more: gresb.com