Polaris and EU regulations on sustainability
The Sustainable Finance Disclosure Regulation (SFDR) is a European regulation introduced to improve transparency in the market for sustainable investment products, to prevent greenwashing and to increase transparency around sustainability claims made by Polaris and other financial market participants. Compliance with the EU regulations on sustainability is a high priority and fully integrated in our work with sustainability at Polaris.
You can read more about how Polaris’ work with sustainability is aligned with the EU requirements in the SFDR here:
The EU regulations through SFDR defines certain mandatory sustainability-related disclosures related to Polaris and Polaris funds which you can find here:
Our commitment and focus
To honor our responsibility, we have integrated sustainability throughout Polaris at three different levels and our performance is evaluated accordingly:
Polaris as a fund manager: How we integrate sustainability in our investment process
Polaris’ portfolio: How our portfolio companies work with sustainability and their progress
Polaris Management: How we work with sustainability in our own organization and our progress
We also work to promote sustainability throughout the investment industry, and we pledge to be transparent and report on our progress in our annual sustainability report.
Within our scope of sustainability, we include potential social, environmental, and economic impacts across Polaris including our portfolio companies and their supply chains. We dedicate extra attention to three focus areas across Polaris:
Work to combat climate change.
KPI: CO2e emissions.
Support gender equality and gender diversity.
KPI: Gender distribution.
Work to ensure a high standard working environment across Polaris.
KPI: Employee turnover.
Our investment criteria
The following sustainability criteria need to be met for an investment to be within Polaris’ investment mandate and for it to be considered an eligible investment for Polaris, from a sustainability perspective:
- The company is not part of, or has an important exposure to, a “no-go” sector: gambling, weapons, tobacco, and pornography.
- The company does not have an unacceptable exposure to countries, persons, or entities on the UN sanctions list.
- The risks of adverse impacts relating to Polaris’ target companies, as defined in our Sustainability Principles, are determined to be acceptable and manageable.
- The portfolio companies have processes, procedures, and policies in place to govern and manage sustainability and the company’s adverse impact, or we believe that we will be able to establish these, in collaboration with the management team, post-acquisition.
The Polaris Sustainability Platform
Polaris Sustainability Approach
Our strategic approach, ambitions, and rationale behind our projects in Polaris are based on internationally recognized standards within sustainability:
Definition of Sustainability
Within the scope of sustainability, we include social, environmental, and economic impacts according to the internationally agreed principles for sustainable development consisting of the UN Guiding Principles (UNGPs from 2011), and as referenced by the OECD Guidelines (OECD from 2011) and we refer to these as the basis for our “Sustainability Principles”.
We have well defined minimum criteria that define which companies that we are willing to invest in and not.
Polaris Sustainability Due Diligence
A structured approach for how we evaluate potential investments with respect to sustainability. The evaluation includes Polaris Sustainability Checklist which is an assessment tool to evaluate the maturity of a company’s sustainability structure and processes.
Polaris Sustainability Program
A standard program containing structure and processes related to sustainability which is used to support the development of a sustainability agenda in each Polaris portfolio company. The program is an integrated part of Polaris Excellence Model which is our way of working together with our portfolio companies.
Polaris Sustainability Group
We regularly gather all the lead sustainability officers in our portfolio companies in a joint working group to share knowledge, best practices and to discuss important sustainability topics.
Polaris Annual Sustainability Report
Polaris policies regarding sustainability