A stronger impact by responsible investment

Hartwall Capital became a signee of the UN principles of responsible investment (UNPRI) in 2020. Adopting the principles is an important step in making sure our activities are sustainable, in Hartwall Capital as well as in our portfolio companies.

Responsible investments have been a guiding light for Hartwall Capital’s activities since the beginning. In 2020 we signed the UN principles for responsible investment and joined the Finnish Venture Capital Association, FVCA.

The partner organisations serve as further support for the development of our processes and for increased transparency, for example through the best practices and well-tested reporting models they provide access to. In addition, membership in these networks gives us the opportunity to follow the development of ESG-related processes (environment, social responsibility and governance) in the investment industry as well as access to the forums where these are discussed and developed.

– The demands on signees of the UNPRI are nothing new for Hartwall Capital. Responsible investment is a principle that has always governed the business and ownership. As our organisation grows, the demand to create more systematic and integrated processes related to the ESG principles within our investment operations increases. We also need to make sure that the impact of the measures is followed up and reported in a transparent way. We want to follow the development of ESG matters in the industry and collaborate with other industry players, which has got off to a good start already by having the opportunity to participate in the FVCA’s temporary ESG working group, says Niko Mokkila, Head of Investment Operations at Hartwall Capital.

Responsible investment activities are about taking environmental, social responsibility and good management principles into account in all operations. By doing so, we contribute to sustainable development, more efficient resource management and a sustainable increase in value.

– Sustainability and social responsibility are at the heart of many family-owned companies. We have the strong support of the owners to further develop our processes and actions to make the impact tangible. The emphasis on ESG contributes to sustainable development and added value and is thus an inseparable part of our risk management process, which we will be focusing on this year, says Heidi Sulin, Head of Support Functions.


UN Principles for Responsible Investment

In 2005, then-UN Secretary-General Kofi Annan convened a group of the largest institutional investors to develop UN principles for responsible investment. The principles were launched in 2006 on the New York Stock Exchange. The principles are based on the idea that environmental, social and governance aspects can have an impact on the value development of investment portfolios and should therefore be taken into account.

Many large companies have suffered from high costs and expensive PR scandals after neglecting the sustainability aspect of their operations. Other companies have learned from those mistakes: sustainability is no longer a trend, but a natural part of the strategy and operations. Large banks and financial institutions have established their own departments to ensure that their business meet the requirements and an entire industry with institutes and consulting companies working on environmental, corporate social responsibility and administrative issues has emerged.

There are already a number of indexes to measure how different companies deal with ESG issues. We know that more are on the way to help investors, consumers and other stakeholders to review the non-financial aspects of a company’s business, which is a positive development.

The signatories of the UN Principles for Responsible Investment commit to:

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