We want to be a pioneer in impact and sustainable investing. By impact investing, we mean investing which not only brings solid financial returns but also actively promotes solutions to key sustainability and responsibility issues.
In our view, sustainability and responsibility are essential factors in the definition and management of our strategy, risk management and the potential for financial returns and value creation, now and in the future. We consider sustainability risks, sustainability factors and principal adverse sustainability impacts as part of our operations.
Taaleri investment activities
Taaleri engages in investment activities in many different forms: we manage private equity funds investing our clients’ assets, make co-investments and manage mandates. In addition, we make strategic investments from the Group’s balance sheet that support our core businesses. Taaleri’s subsidiary Garantia also conducts investment activities. We apply the principles of sustainable investing to all our investments and the assets we manage.
Principles and approaches of sustainable investing
Taaleri has been a signatory to the UN Principles for Responsible Investment (UNPRI) since 2010 and we follow these principles in all our investments.
We make extensive use of a variety of sustainable investment approaches and strategies. We take sustainability factors and aspects into account throughout the investment process from investment target screening to due diligence assessments, negotiations and commitments. We analyse sustainability impacts and risks throughout the investments’ lifecycle.
Taaleri promotes impact investing by implementing projects that are economically viable and have a positive impact on the environment and/or society. Our goal is to be a pioneer in impact investing. We offer investment options related to climate change mitigation and promoting sustainable development in sectors such as renewable energy, real estate and bioindustry.
Read more about Taaleri’s sustainable investment processes in our Sustainability Policy, Sustainability Risk Policy and our AIFMs’ Statement on Principle Adverse Impacts. These documents are available at https://www.taaleri.com/en/corporate-responsibility/document-archive.
Taaleri's latest UNPRI materials can be found below:
Taaleri's UNPRI 2023 Summary scorecard
Taaleri's UNPRI 2023 Transparency report
Before making an investment decision, all investment targets go through a thorough screening process, after which they are moved on to a due diligence assessment phase.
Sustainability impacts are also taken into account in negotiations and agreements, which have to align with our sustainability principles and criteria in order for us to make a positive investment decision. We monitor the sustainability impacts and risks of all our investments and manage them through active ownership, for example by operating on the board of directors of investee companies. In addition, we require our investees to commit to Taaleri’s net-zero emission targets and ethical principles.
We comply with international standards, norms and regulations related to the environment and society. At minimum, we are committed to complying with laws and regulations, as well as the requirements of the authorities of the countries in which we operate. In all our projects, we evaluate the adequacy of local standards and, if necessary, add or clarify our requirements for compliance with international standards. Our alternative fund managers (AIFMs) Taaleri Pääomarahastot Oy and Taaleri Energia Funds Management Oy are licensed fund managers subject to supervision as required by the AIFM Act.
In addition to international, national and industry-specific laws, standards and norms, we manage the sustainability impacts and risks of all our investment decisions with various quantitative and qualitative analyses, continuous monitoring and ethical guidelines, the goal of which is to prevent the realisation of sustainability risks and adverse sustainability impacts.
In all our investment decisions, we take into account the principal adverse impacts on sustainability factors. By principal adverse impacts, we mean our investment decisions’ potential negative effects on the environment, society, employees, human rights or good governance. In our private equity fund business, we actively analyse and manage adverse sustainability impacts as part of the screening and approval process of our investments by ensuring the good management practices of investment targets as well our investment activities, and also through general continuous monitoring of our operations.
We assess the adverse sustainability impacts of potential investments and avoid investments whose negative effects are unacceptable in our opinion. If we cannot avoid a material adverse impact in a technically and economically feasible way, we will do our best to minimise it. As a last resort, we will correct or compensate for any negative effects.
Sustainability risk means an event or circumstance relating to the environment, society or governance, the occurrence of which may have an actual or potential material negative impact on the value of the Taaleri Group or the investment products it offers. Taaleri strives to minimise the negative impacts of sustainability risks on the Group, its stakeholders and the surrounding society.
We not only examine the market environment from the risk perspective, but also from the point of view of opportunities. We make our investment decisions based on economic factors, impact potential, sustainability risk assessment and sustainability assessment.
Read more about identified sustainability risks and the processes we apply to evaluate them in Taaleri’s Sustainability Risk Policy.
We expect and monitor that all our investment targets respect human rights, treat their employees appropriately and equally, manage their environmental impact, and comply with good governance practices, following international standards and minimum requirements for good business practice, such as those published by the UN, ILO, OECD and EU.