Our sustainability roadmap and targets
Our sustainability strategy centres around our role as an active owner. We make an impact through our ability to influence decision-making and activities across the CapMan Group and portfolio companies and assets. We steer our investments towards clear sustainability targets. We strive to find opportunities that mitigate societal and environmental challenges.
CapMan is dedicated to creating a sustainable future that is resilient to climate change and utilizes resources efficiently. With the aim of contributing to a thriving economy, meaningful job opportunities, and diverse workplaces, we have established short-term, mid-term, and long-term sustainability targets. Targets are set for CapMan Group as well as our investment areas. We continue to develop our approach and transition towards our long-term goals.
Sustainability performance targets
CapMan has set the following sustainability performance targets set to measure the sustainability performance of its unsecured €40 million sustainability-linked notes due in April 2027
Sustainability Performance Target 1: Greenhouse gas emission (GHG) reduction pathway validated by the Science Based Targets initiative (SBTi).
CapMan has set GHG emission reduction targets that follow a near-term GHG emission reduction pathway aligned with a 1.5-degree scenario as outlined in the Paris Agreement. The targets have been validated by the SBTi and are published on SBTi’s website www.sciencebasedtargets.org.
Scope 1 and 2 targets: CapMan Plc commits to reduce absolute scope 1 and 2 GHG emissions 51% by 2032 from a 2021 base year. CapMan Plc commits to increase annual sourcing of renewable electricity from 46% in 2021 to 100% by 2030.
Scope 3 portfolio targets: CapMan Plc’s portfolio targets cover 72% of its total investment and lending by assets under management as of 2022. As of that year, required activities made up 82% of CapMan Plc’s total investment and lending by assets under management while optional activities made up 18%.
- Private Equity: CapMan Plc commits to 54.5% of its eligible private equity investments by assets under management setting SBTi validated targets by 2027, and 100% by 2032. The targets follow a portfolio coverage approach.
- Real Estate: CapMan Plc commits to reduce its real estate portfolio GHG emissions from residential buildings within its direct investment portfolio 50% per square meter by 2032 from a 2021 base year. CapMan Plc commits to reduce its real estate portfolio GHG emissions from service buildings within its direct investment portfolio 72% per square meter by 2032 from a 2021 base year. The targets follow a sector decarbonisation approach.
Sustainability Performance Target 2: CapMan will integrate sustainability objectives into the variable remuneration of CapMan’s Management Group.
The Board of Directors have integrated sustainability targets to the Management Group’s long-term performance share plan which are linked to CapMan’s overall sustainability targets. CapMan’s performance share plan 2022- 2025 includes a share reward component earned on the basis of achieving such sustainability targets as follows:
- Set science-based targets for climate, have the targets validated by the Science Based Targets Initiative and thereafter follow the GHG emission reduction plan;
- Maintain the employee satisfaction eNPS survey above 50 on a yearly basis;
- Include relevant and quantifiable ESG targets in the CapMan Group employee bonus programme for all eligible personnel. ESG targets should count for minimum 5% of the employee evaluation score by April 2025;
- Set med- and long-term percentage targets by end of 2023 on gender diversity, including targets for appointments for Management Group and Partner level, and targets for new recruits throughout the CapMan organisation. CapMan should reach the mid-term target (to be set by the end of 2023) by April 2025.
What is Science Based Targets initiative?
The Science Based Targets initiative (SBTi) is a collaboration between CDP, the United Nations Global Compact, World Resources Institute and the World Wide Fund for Nature. The SBTi drives ambitious climate action in the private sector by enabling companies to set science-based emissions reduction targets. SBT shows companies how much and how quickly they need to reduce their greenhouse gas (GHG) emissions to prevent the worst effects of climate change. The initiative mobilizes industry leaders and companies to set net-zero targets in line with curbing global warming to 1.5 °C on average, which is widely recognised as the limit at which the effects on the global climate are still on a sustainable level.