About
At SG Capital, sustainability is central to our identity and is deeply embedded in each of our funds. Through SG Capital Partners Fund I, we invest in real estate projects that prioritize energy efficiency and environmentally friendly practices, creating spaces that benefit communities while preserving resources. Our Sustainable Forest and Land Fund goes further, actively protecting Baltic forests, enhancing carbon sequestration, and supporting biodiversity.
Each fund reflects our commitment to a balanced approach—where responsible growth and ecological stewardship align to support a lasting, positive impact across the region.
Looking ahead, our future funds will continue to align with this sustainable vision. With plans to launch funds in rental, infrastructure, and growth capital, we remain focused on projects that contribute to resilient communities and minimize environmental impact. Each new venture will be carefully structured to align with ESG standards, ensuring that our investments continue to foster sustainable growth for generations to come.
We prioritize projects that actively reduce carbon footprints and enhance energy efficiency, helping the Baltic region transition to cleaner, renewable energy sources.
Committed to protecting natural habitats, we invest in sustainable forestry management practices that support biodiversity and ecological resilience.
Through sustainable urban development, we create value for local communities, facilitating economic growth and a healthier environment.
Our investments align with stringent ESG standards, ensuring transparency and accountability in every decision, and lasting, responsible growth.
Our commitment
We prioritize projects that actively reduce carbon footprints and enhance energy efficiency, helping the Baltic region transition to cleaner, renewable energy sources.
Committed to protecting natural habitats, we invest in sustainable forestry management practices that support biodiversity and ecological resilience.
Through sustainable urban development, we create value for local communities, supporting economic growth and a healthier environment.
Our investments align with stringent ESG standards, ensuring transparency and accountability in every decision, for lasting, responsible growth.
Integration of sustainability risks into investment decisions
Sustainability risks can affect the value of investments in managed alternative investment funds. SG Capital Partners AIFM (SG Capital), therefore, designs its risk management framework to identify and manage sustainability risks. Several internal regulatory documents, such as the Sustainability Risk Management Policy and the ESG Due Diligence Policy, have been developed for this purpose.
Through stakeholder engagement with SG Capital and the funds it manages, SG Capital assesses and identifies areas of material sustainability impact and associated sustainability risks of the funds it manages. The management of these risks is then integrated into the managed funds’ sustainability strategies and objectives, the implementation and execution of which are monitored by the funds’ Sustainability Committees and the SG Capital Board.
The investment decisions of managed funds also consider sustainability risks and their potential impact on the asset in question. Following the acquisition of assets, the performance of the Funds’ investment portfolios and the resulting sustainability impact are monitored by the Funds’ Investment and Sustainability Committees.
See the attached document for more information on sustainability risks and their management.
- The original version 1.0 was published on 31.07.20243.
- Updated version 2.0 was published on 23.05.2024. Updated information on the identification and assessment of sustainability risks, as well as on responsible institutions for sustainability and outlining the investment process.
- Updated version 3.0 was published on 25.11.2024. The section "Identifying and assessing sustainability risks" has been revised. Some of the information in the document has been moved to documents providing information on the managed funds.
Statement on principal adverse impacts of investment decisions on sustainability factors
SG Capital Partners AIFM (SG Capital) considers the principal adverse impacts of its investment decisions on the sustainability factors of the funds it manages.
SG Capital assesses the principal adverse impacts of investment decisions before investments are made—during due diligence. After the investment, SG Capital regularly monitors the financial performance and sustainability impact of the investment portfolio, including the adverse impact. SG Capital publishes annual statements on the principal adverse impacts of investment decisions on sustainability factors.
In addition, each managed fund’s annual periodic report (Environmental and/or Social Performance or Sustainable Investment Objective) describes the indicators used to assess the adverse impact of the fund’s investment decisions on sustainability factors and their performance in the reporting year. These reports can be found in the section Our Funds by selecting the relevant fund in Periodic Reports.
- Statement on principal adverse impacts of investment decisions on sustainability factors for 01.01.2023-31.12.2021. was published on 20.08.2024.
Integration of sustainability risks into Remuneration Policy
The remuneration policy is generally designed to avoid excessive risk-taking, including sustainability risks, but specific sustainability factors relating to environmental, social and corporate governance are not considered when setting or assessing remuneration.
Staff performance evaluations shall take into account the achievement of qualitative and quantitative targets. Assessing sustainability risks and planning activities to manage them are essential to enabling staff to achieve their objectives.
SG Capital adheres to the principles of good corporate governance and equal treatment when determining remuneration.
More on the Remuneration Policy here.
- Original version 1.0 published 25.11.2024.