Description of principal adverse sustainability impacts
Nearly all types of economic activity have potential to impact various sustainability indicators, both positively and adversely. PAI indicators are a way of measuring how investors negatively impact sustainability factors.
We aim to manage the risk connected to potential adverse sustainability impact from our investments in several ways, including via Responsible Investment screening criteria covering Environment, Social Capital, Human Capital, Business model & Innovation and Leadership & Governance dimensions, integration of ESG aspects in our investment decision process at Investment proposal stage, followed further at portfolio monitoring.
Evaluation of investment target’s ESG aspects as per ESG aspects materiality and impact model is included in Investment Memorandum subject for approval by Investment committee. Such practise is established for all investment proposals already as of July 2021. In case ESG aspects are scored at high risk level with limited risk mitigation activities carried out by the target company, no investment is approved.
The PAI indicators currently set and to be monitored and evaluated as of 2023 include:
The data for PAI indicators and/or calculations of PAI indicators are to be obtained from portfolio companies. They will be reviewed by ALTUM but will not be verified. ALTUM does the best to quality-assure PAI indicators accuracy.