We are committed to promoting sustainability throughout Polaris
Through our portfolio companies, Polaris has significant combined revenue, thousands of employees, and operations in many countries, giving us responsibility toward a broad range of stakeholders. While our greatest sustainability impact is through our investment activities, we are also committed to addressing sustainability within our own organization at Polaris Management.
Polaris Management is the fund manager of Polaris’ funds. We are an investment company focusing on supporting mid-sized companies in the Nordics through complementing investment strategies that share the same focus, objective and approach. Although our own operation is small, the funds we manage own, or lend to, a number of portfolio companies with a significant combined revenue, thousands of employees, and operations in many countries across the world. We therefore have a responsibility towards a broad range of stakeholders such as investors, employees, customers, suppliers, business relationships, and the communities in which Polaris Management and our portfolio companies operate.
We take this responsibility seriously, and we are committed to actively promoting sustainability throughout Polaris. Our commitment to sustainability is executed broadly across our operations. The main opportunity we believe that we have to promote sustainability is through our investment activities. We therefore work to incorporate sustainability throughout our investment process and our portfolio management process in the active ownership period.
In addition to working with sustainability in our investment activities, we also promote sustainability in our own daily operations. In this work we apply the principles, structures and focus areas for promoting sustainability as those we have set out for the whole of Polaris and our private equity portfolio companies. In Polaris Management, we are therefore committed to reducing our own environmental footprint, continuously improving our working environment and promoting gender equality. We conduct our business with the highest ethical standards and expect the same from our business partners and we employ and promote best practice international standards as the foundation for our work with sustainability. We have made a commitment to engage with peers and industry associations to promote sustainability in the investment industry in Denmark, Sweden and in Europe.
Key statistics 2025
CEO: Jan Johan Kühl
Chairperson: Anne Holm Rannaleet*
HQ: Copenhagen, Denmark
# of FTEs: 47
Revenue (DKKm): 133
Revenue (EURm): 18
*Effective 1 Jan 2026
Management summary
As a fund manager, our approach to sustainability spans a broad set of activities that must be continuously developed, adapted, and strengthened. During the period, this work continued across three levels: Polaris as fund manager, our portfolio companies, and Polaris Management’s own operations.
During the period, our work at fund manager level focused on continued integration of sustainability into our investment process and consolidation of existing practices. No material changes were made to our overall sustainability framework.
A key development during the year was the implementation of the Novata platform as our core sustainability data collection and reporting tool. This was combined with a streamlining of sustainability reporting requirements for portfolio companies, reducing the number of required data points and sharpening the focus on material topics.
We also continued to apply our sustainability approach in due diligence and ownership, including further development of how sustainability-related risks, opportunities, and potential impact considerations are assessed in investment processes.
In parallel, targeted training on Science-Based Targets (SBTs) was delivered to investment teams to support more structured engagement with portfolio companies in this area.
A key milestone during the period was the approval of Polaris’ Science-Based Target, which establishes a portfolio-wide framework for our climate ambitions. The sustainability function also underwent a transition during the year, with onboarding of a new Head of Sustainability and continued integration of sustainability work within the broader organization.
During the period, no acquisitions or divestments were completed. As a result, the focus at portfolio level was on continued onboarding and development of existing companies within the Polaris Sustainability Program.
Recently acquired companies, including Cepheo, Micropower, Awardit, Vinnergi, and 7N, continued to be aligned with Polaris’ sustainability requirements. These companies generally started from a stronger baseline than earlier investments, allowing for a more targeted focus on further development rather than establishment of basic structures.
The implementation of the Novata platform, alongside the streamlining of reporting requirements, also impacted portfolio companies during the year by shifting focus toward a more targeted and material set of sustainability KPIs.
Across the portfolio, sustainability work continues to progress incrementally. Most companies measure greenhouse gas emissions across Scopes 1, 2, and 3 and publish dedicated sustainability reports or are in the process of doing so. Progress on Science-Based Targets also continued, supported by more structured engagement from Polaris following internal training.
Overall, the period was characterized by gradual maturation of sustainability practices across the portfolio, rather than step-changes driven by portfolio activity.
At Polaris Management level, the focus during the period was on maintaining and incrementally improving existing sustainability practices. We continue to apply the Polaris Sustainability Program internally, including measurement and follow-up on key indicators such as greenhouse gas emissions, gender distribution, and employee-initiated turnover.
No major changes were introduced to the internal sustainability framework during the year. Progress was primarily driven by ongoing monitoring, data improvements, and targeted initiatives to support the working environment and diversity objectives.
As part of Polaris’ Science-Based Target, we have committed to reducing Scope 1 and 2 emissions to zero by 2030. Given that Scope 3 emissions are primarily driven by external advisors, our approach will focus on engagement and influence to support reductions over time.
Frances Owen
Head of Sustainability
Polaris Management A/S
Sustainability metrics
Polaris sustainability focus area KPIs
The increase in Polaris Management’s GHG emissions in 2025 is primarily attributable to expanded Scope 3 coverage and improved calculation methodology, rather than a material change in underlying activity. In particular, the transition to a trial balance-based, spend-based approach significantly broadened the scope of purchased goods and services included in the calculation, driving a substantial increase in reported emissions. Additional movements include a reallocation between business travel and employee commuting, while Scope 2 emissions decreased slightly due to lower energy use and grid decarbonization.
As part of Polaris’ Science-Based Target, we will work to source our use of heating and electricity from renewable sources to reach 100% by 2030. Our Scope 1 emissions are already zero through a move to Electric Vehicles (EVs).
GRI: 305-1a, 305-2a, 305-3a, 305-4a
Climate Action Management
Scope 1 & 2
Spend-based calculations with national statistics on fuel and energy prices. Driven by use of electricity and heating in our office.
Scope 3
Combination of spend and activity-based calculations for selected categories. Driven primarily by purchased goods and services, including external advisors, communication and IT hardware, and other operating expenses.
Strategy & targets
Science-Based Target set for emission reductions for Polaris Management A/S in-line with the requirements of the SBTi.
Initiatives
Move to electric vehicles executed. Opening of our Stockholm office is expected over time to reduce emissions from travel and employee commuting, although it may increase Scope 2 emissions from office energy use. Next step is to source energy needs from renewable sources.
TCFD
Not conducted on Polaris Management as climate-related risks & opportunities primarily are associated with the portfolio.
Gender diversity remained unchanged at Board and Management levels, at 25% and 9% female, respectively. At the Investment staff level, representation increased to 36%, reflecting both continued progress in hiring and a broader employee base compared to the prior year. Support staff remained broadly stable at 29%. Our combined gender distribution for Management and Investment staff improved during the year and continues to track slightly above the Danish private equity industry average, but still below leading European markets such as Sweden, based on Level 20 benchmarking.
GRI: 405-1(i)
Gender Equality Management
Tracking
Tracking in place on gender across the organization, at different tenures.
Strategy & targets
Targets have been defined and approved by the board of directors.
Initiatives
Initiatives are on-going to improve diversity and inclusion in the Polaris and includes code of conduct training by external experts, follow-up of regular pulse checks and employee satisfaction surveys to continuously improve the working environment as well as execution of our revised parental leave policy to encourage both male and female members to take parental leave.
Employee-initiated turnover remained at low levels in 2025 and decreased compared to 2024, returning to levels more in line with the historical range. Turnover continues to be closely monitored.
SASB: Adapted from HC-DY-330a.1
Employee Turnover Management
Tracking
Tracking in place on employee-initiated turnover.
Strategy & targets
Maintain structurally low turnover levels below 8-10% over time.
Initiatives
Continuous initiatives to support an improved working environment. Initiatives prioritized based on regular employee satisfaction surveys and pulse checks among staff (three per year).
Polaris specific sustainability KPIs
No investments were completed during 2025 and, accordingly, no sustainability due diligence was performed as part of executed transactions during the period. Sustainability due diligence remains embedded in Polaris’s investment process and is applied to all relevant transactions when executed.
SASB: Adapted from FN-AC-410a.1
In 2025, Polaris updated the methodology for this KPI. Previously, the metric was based on portfolio company membership of the UN Global Compact. From 2025, it is instead based on whether portfolio companies report having policies aligned with the UNGC principles and the OECD Guidelines for Multinational Enterprises. On this basis, 10 of 17 portfolio companies, or 59%, were covered in 2025. The comparable 2024 figure, recalculated under the updated methodology, was 10 of 16 portfolio companies, or 63%. The year-on-year decrease is driven by the onboarding of Salfarm in 2025, which does not yet have such policies in place.
We aim to have all private equity portfolio companies aligned with UN/OECD principles for Responsible Business Conduct as part of the Polaris Sustainability Program within 12 months of closing. We continue to work towards full coverage, although implementation may extend beyond the first year of ownership in practice due to competing priorities and resource constraints.
SASB: Adapted from FN-AC-410a.1
Employee engagement remained high in 2025. Polaris continues to monitor feedback from surveys and pulse checks to guide ongoing development initiatives.
SASB: Adapted from FN-AC-410a.1
Description of policy and procedure
Polaris Management has had a whistleblower policy since 2014 which allows employees to file anonymous reports on irregularities in our operations. The policy also protects whistleblowers from retribution. The reports are sent anonymously directly to Polaris’ compliance office or chairperson in a purpose made system for review, feed-back and potential actions. We consider the whistleblower function as an important opportunity for us to receive important information about our operations that can enable us to address issues that we might be connected to as early as possible to limit damage to ourselves and our stakeholders.
All Polaris employees review Polaris whistleblower policy as part of annual policy updates. In 2023, we implemented an external whistleblower system from EQS to facilitate reporting and protect individuals. We have also made this publicly available on our web site to also allow reports from outside our own organization such as portfolio companies and business partners. We want to encourage whistleblower reports as they can help us address important issues earlier and minimize negative impacts on affected stakeholders and Polaris. We have chosen not to disclose if any reports have been made or how many as we don’t believe this is a relevant sustainability indicator. We do, however, report on any adverse sustainability impacts or incidents in our private equity portfolio to our investors on a quarterly basis.
SASB: FN-AC-510a.2
Our work with sustainability is described in Polaris Responsible Investment policy which is approved, and regularly reviewed, by the Partner Group and Board of Directors of Polaris Management. Sustainability is also integrated into the Polaris Excellence Model and executed mainly through 'Polaris Sustainability Due Diligence' and 'Polaris Sustainability Program'. We provide regular training and communication regarding our work in the following ways in Polaris Management:
- Quarterly investment team updates: We provide information on updates to our work with sustainability quarterly to our investment staff (as part of the Polaris Excellence Program)
- Onboarding of new staff: We provide onboarding on our sustainability work to all new employees
- Investment team project support: We support, and educate, all investment teams in our sustainability structure in the final investment evaluation phase (due diligence)
The onboarding and training of Polaris Portfolio companies start already in the due diligence phase and continues in the ownership phase through the following components:
- Sustainability due diligence introduction: We conduct a digital meeting in the due diligence process in all potential investment opportunities with key management team members dedicated to sustainability. The call is led by Polaris Head of Sustainability together with any dedicated advisors used in the process. The meeting includes an introduction to Polaris sustainability work, approach, standards and expectations as well as a discussion of material impacts and future plans which serves as a basis for the future business plan for future sustainability work.
- Onboarding: We conduct a full day onboarding for the management team and board members of all new investments at Polaris office where we introduce them to the components of Polaris Excellence Model. This includes a session dedicated to sustainability.
- Implementation of UN/OECD guidelines: Each portfolio company is onboarded on the UN/OECD guidelines for responsible business conduct. This is initiated in a 5-day workshop process, which also serves as an education of the participating management team members of the company. During the workshop, each company implements SEE Impacts (by Global CSR) which is a cloud-based solution for identifying and managing adverse sustainability impacts.
- Annual workshops: We conduct annual digital workshops for the board members and management teams in all of our private equity portfolio companies.
- Polaris Sustainability Group: We gather all sustainability leads in a working group who meet every other month to discuss new developments and share best practices in sustainability. This includes discussions of topics like sustainability indicators, CSRD, carbon footprint measurements, supply chain management etc. At the end of 2025, we conducted our 24th meeting with this group.
Gender Equality
Concrete initiatives in progress
- Work to support gender equality in the private equity industry in Denmark, Sweden, and Europe
- Ensure a working environment supportive of gender equality at Polaris Management
Status on initiatives
- During the period, we continued to co-lead the activities of Level 20 in Denmark. Our participation in this network informs our own internal activities, including by providing support for recruitment and retention.
Concrete initiatives in progress
- Ensure initiatives to improve gender equality in Polaris’ portfolio companies
- Expand Polaris’ female network and recruitment base for projects, board, and management team positions
Status on initiatives
- During the period, we continued to monitor gender distribution across portfolio companies. In addition, we initiated preparatory work to strengthen our approach to diversity and inclusion in active ownership, including planning a dedicated training for our investment teams with an external DEI advisor, which is scheduled to be carried out in 2026.
- We also began to assess the implications of the EU Equal Pay Directive for our portfolio companies, with a view to developing more formal guidance in 2026 ahead of its implementation.
Working environment
Concrete initiatives in progress
- Initiative to support employee health
- Process to foster culture of feedback and personal development
Status on initiatives
- During the period, refurbishment of the Copenhagen office progressed, including measures to improve the indoor climate. In parallel, plans for a new Stockholm office advanced, which is expected to support the working environment for the Stockholm-based team.
- Work to strengthen the feedback process, initiated based on employee survey results, also remained ongoing.
Concrete initiatives in progress
- Ensure initiatives to improve working environment in Polaris’ portfolio companies
Status on initiatives
- During the period, we continued to follow up on employee turnover across portfolio companies. In addition, we further developed our approach to monitoring working environment indicators, including employee satisfaction, absenteeism, and workplace incidents.
These metrics are expected to form part of a more structured set of work environment KPIs to be implemented across portfolio companies in Polaris Private Equity VI.
Investment thesis & process
Concrete initiatives in progress
- Integrate sustainability in Polaris’ investment process
Status on initiatives
- During the period, we initiated work to update our Sustainability Due Diligence (SDD) framework to align with evolving regulatory and strategic requirements. This forms part of a broader effort to strengthen sustainability integration in our investment process, with further development expected from 2026.
Active Ownership
Concrete initiatives in progress
- Ensure that our portfolio companies address relevant sustainability related risks and opportunities and continuously improve their performance through implementation of 'Polaris Sustainability Program'.
Status on initiatives
- During the period, we continued to implement the Polaris Sustainability Program across portfolio companies. We also began considering how to further strengthen our standard onboarding process for new portfolio companies, with a view to better supporting them in completing double materiality assessments and developing sustainability strategies integrated into their commercial strategy.
Climate Action
Concrete initiatives in progress
- Implement initiatives to reduce climate impact in Polaris Management based on calculations of GHG emissions
Status on initiatives
- During the period, we continued to assess opportunities to source renewable energy to further reduce Scope 2 emissions.
Concrete initiatives in progress
- Ensure initiatives to reduce climate impact in Polaris’ portfolio companies based on calculations of GHG emissions
Status on initiatives
- Polaris maintains a Science Based Target (SBT) for emission reductions, including targets for the portfolio. This includes a sub-target that portfolio companies are expected to set SBTs over time. During the period, we continued to assess how to support portfolio companies in progressing towards these targets, including through further development of our approach to engagement and guidance.
- This included a dedicated SBT training for our investment teams in 2025 to support more structured engagement with portfolio companies on this topic.
Sustainability concept applied to Polaris Management
Polaris Management A/S is committed to upholding the same sustainability principles internally as those applied to our private equity portfolio companies. To align with this commitment, we have implemented the Polaris Sustainability Program within our own organization. This program ensures that our management practices reflect the sustainability standards we expect from our investments. Further details regarding the implementation and scope of the program are provided in the Polaris Private Equity section of this report.
Methodology for GHG accounting in Polaris Management
We measure the GHG emissions of Polaris Management annually, following the same reporting principles as applied to our portfolio companies.
In adherence to the GHG Protocol, we also consolidate the total GHG emissions of our private equity portfolio companies together with the GHG emissions of Polaris Management. We apply the operational control consolidation approach across all private equity portfolio companies and consolidate their Scope 1, 2, and 3 emissions accordingly, acknowledging the influence we have across all companies, even where we do not hold majority equity ownership.
Presented here are Polaris's overall consolidated emissions, an overview of how each company has been included in the calculations, and an outline of the Scope 3 categories that have been omitted for Polaris Management.
