Sustainable investing

Our impact

Intera is committed to responsible investing and promoting sustainability.

By employing over 10,000 people in our portfolio companies, we have a great opportunity to achieve significant and long-lasting societal impact. We also influence the future: majority of Intera’s funds originate from pension funds, and the returns generated support the building of a sustainable future.

Our approach to corporate responsibility is pragmatic and flexible to fit the operations and industry of each company.  During our ownership, Intera’s portfolio companies have succeeded in e.g. improving health and safety of their employees, contributing to effective use of energy resources, increasing diversity and ensuring proper corporate governance.

Our approach

Sustainability plays a key role in our investment decisions and is considered already in the early stages of our investment process. We believe that properly implemented sustainable investing also creates financial value. In exit phase, it is important that our portfolio companies meet the key ESG (Environment, Social and Governance) criteria , which potential buyers and financiers consider important.

We ensure implementation of ESG principles and guidelines in all our portfolio companies, where sustainability is then developed over Intera’s ownership period, which is typically 3–7 years. As part of the process, each company defines its own relevant ESG focus areas and targets as well as mandatory governance and reporting measures. Our goal is to ensure that during Intera’s ownership, sustainability becomes an embedded part of the companies’ daily operations and strategic planning.

The portfolio companies themselves decide on the sustainability measures they choose to adopt. Our role at Intera is to ensure implementation of the sustainability work in our portfolio companies, share best practices across industries and monitor development. We especially support those companies that have not previously conducted long-term and influential corporate sustainability work.

Both in the portfolio companies and at Intera, we strive to increase diversity in different roles, management teams and boards. We make sure that so-called code of conduct and the Whistleblow reporting channel are introduced at an early stage in our portfolio companies. In addition, our companies monitor issues related to health and safety by various means and promote actions related to an equal and communal culture. The tools are determined on a company-by-company basis, but typical ways to monitor development are personnel surveys, sick leave and accident reports, development and departure discussions, employer image surveys, etc.

We communicate corporate responsibility matters effectively and transparently with our investors, portfolio company management and other stakeholders. Potential ESG incidents are promptly investigated and resolved.

Sustainability work with our companies: Social responsibility is at the core of Midagon’s business model

Sustainability risks in Intera’s investment decisions

According to its definition in Article 2 of the SFDR Regulation (Sustainable Finance Disclosure Regulation, 2019/2088, as amended; hereinafter, the Regulation), sustainability risks are environmental, social or governance events or conditions, which, if occurred, could cause an actual or a potential negative impact on the value of the investment.

Intera Partners takes sustainability risks into account in its investment decisions. During the acquisition process, we aim to identify risks or opportunities related to sustainability in the portfolio company’s industry and business model. We invest in companies that have the potential to grow and generate more value, and whose sustainability risks we evaluate to be manageable and/or ideally eliminated. We do not invest in companies where we have identified significant and irremediable sustainability risks.

In addition, the ESG requirements set by Intera Partners for its portfolio companies include measures related to sustainability risks, such as the analysis of sustainability risks and ESG opportunities, the definition of ESG focus areas and key performance indicators (KPI) relevant to the companies.

For the time being, Intera Partners does not consider adverse impacts of investment decisions on sustainability factors in such a manner that it could report the principal adverse impacts of its investment decisions on sustainability factors within the meaning of Article 4 of the Regulation.

The content, form of presentation and practices of the disclosures required by the Regulation are only developing, and for now, there is no full certainty as to whether all the required information will be available in a timely manner. When the referred practices become clearer, we will redefine our approach at Intera Partners.

ESG effects of Intera’s investments

Intera Partners’ main impact on society and the environment comes through the operations of our portfolio companies. Therefore, it is very important that ESG factors are taken into account throughout the investment process. We have set high ESG standards for our portfolio companies. Our goal is that our portfolio companies reach our ESG minimum standards in the early stages of the investment, and the work continues throughout the ownership. The ESG developments of the portfolio companies are monitored by industry, e.g. in the form of ESG focus areas and KPI.

The utilization of a common framework and tools enables risk management and ESG development work in our portfolio companies. Intera uses the international ISO 26000 standard as its risk management tool and in developing sustainability work in the portfolio companies.

ISO 26000 has the following seven core subjects:

  • Organizational governance
  • Human rights
  • Labor practices
  • The environment
  • Fair operating practices
  • Consumer Issues
  • Community involvement and development

Sustainable Finance Disclosure Regulation (SFDR)

The Regulation is a regulation of the European Parliament and of the Council that entered into force in March 2021. It aims to strengthen the responsibility of the financial sector by increasing the transparency of the operators in sustainability matters and to prevent greenwashing.

The Regulation defines e.g. how the financial market participants must, before concluding the contract (before investing in the fund), disclose to the investors on how sustainability risks are integrated in investment processes. In this respect, the Regulation divides the products into three different groups, which are usually referred to by article numbers: Products referred to in Article 8 of the Regulation (which, among other characteristics, promote environmental and/or social characteristics and invest in companies that follow good governance practices), products referred to in Article 9 (which have sustainable investment objective, within the meaning of the Regulation) and products referred to in Article 6 (other than products according to Articles 8 and 9).

All funds managed by Intera have been raised before the application of the Regulation has been required. Regardless of this, the above practices are observed in the operations of the funds.

Commitment to United Nation’s Principles for Responsible Investment

Intera has been a signatory to the United Nations’ Principles for Responsible Investment Initiative (UNPRI) since 2020. As a signatory,

  • We will incorporate ESG issues into investment analysis and decision-making processes.
  • We will be active owners and incorporate ESG issues into our ownership policies and practices.
  • We will seek appropriate disclosure on ESG issues by the entities in which we invest.
  • We will promote acceptance and implementation of the Principles within the investment industry.
  • We will work together to enhance our effectiveness in implementing the Principles.
  • We will report on our activities and progress towards implementing the Principles.

 

Contribution to responsible investing community

Intera is a member of corporate responsibility network FIBS ry, which focuses on advancing sustainable and financially sound solutions for local and global problems.

Intera participates in the ESG development work of Finnish Venture Capital Association and follows their rules as well as guidelines of openness and transparency in the private equity industry. The association’s recommendations serve as the industry standard in openness and transparency in the private equity field in Finland.

Intera participates in the activities of the non-profit organization Level 20 to promote gender diversity in European private equity.

Intera’s ESG governance

Intera has an experienced investment team that is committed to ensuring that applicable ESG policies and measures are implemented and developed in our portfolio companies. Overall management, development and reporting of Intera’s portfolio level ESG work are overseen by Intera’s investment team member Matias Köykkä, CFO Tomi Lähdemäki, and Operating Partner Pii Raulo. Intera’s ESG Policy and any updates thereof are approved by Intera’s board.