Sustainability

Responsible investing has been an integral part of our investment strategy and way of working since the beginning.

Originally established as PKA-AIP in 2012 we have a long-standing commitment to reduce the environmental impact of our investments. This makes our approach to responsible investing and to ESG thorough, consistent, and active.

Sustainability is a key part of the investment process where initial screening and 3rd party due diligence ensure, that we engage only in investments aligned with our responsible investment policy. We continue the focus on sustainability, being pioneers in sustainability data collection with a solid reporting foundation, enabling high transparency towards our investors.

ESG is an integrated part of how we invest and manage assets

Screening

To assess decarbonisation fundamentals

ESG
analysis

To identify
initial risks and mitigation

ESG due
diligence

To identify all ESG risks and mitigation actions

Negotiations

Including ESG issues and requirements

Asset
management

Follow up on ESG risks and opportunities

our approach

In pursuit of our targets, we have conducted a double materiality assessment

This process has allowed us to identify the areas where we can make the most substantial impact and focus our efforts on those issues. By using materiality, we are able to address sustainability strategically and efficiently. We work actively on our environmental impact via a Net Zero commitment, biodiversity & ecosystems, and circularity.

We deliver significant impact and contribution to the sustainable transformation

25,424 GWh

 renewable energy
GENERATED per year

10 million

Tons Of c02 emissions avoided per year

5.9 million

households powered
by green electricity

In relation to social sustainability, we focus on health & safety, human rights and diversity, equality & inclusion. Lastly, we remain highly dedicated to ethical business conduct.

Since we were established as an independent investment manager in 2018, we have reaffirmed our commitments on several international sustainability standards and principles. Today, we are a signatory of the United Nations Principles of Responsible Investment and UN Global Compact, a supporter of the Task Force on Climate-Related Financial Disclosures, and a member of the Institutional Investors Group on Climate Change, through whom we have also made a Net Zero commitment.

Commitments and standards:

We also support the UN Sustainable Development Goals, focusing on the following 6 goals:

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Sustainability related disclosures

Sustainability is a core part of our business and is integrated throughout our investment processes. On one hand, we seek to identify and prioritise principal adverse impacts on sustainability factors, and on the other hand, to assess sustainability risks on financial returns. These effects are captured in our sustainability due diligence framework conducted by a 3rd party provider.
SFDR article 3 of Regulation (EU) 2019/2088
Financial advisors must publish information on their websites about their policies on the integration of sustainability risks in their investment decision process.

Our ESG Policy and Responsible Investment Policy integrate sustainability risks into our investment process and operations, including our sustainability due diligence framework. Through our sustainability due diligence framework, we identify and prioritise principal adverse impacts on sustainability factors, as well as assess sustainability risks on financial returns.

SFDR article 4 of Regulation (EU) 2019/2088

In accordance with article 4, financial market participants – including alternative investment fund managers with less than 500 employees – can choose whether to consider principal adverse impact of its investment decisions on sustainability factors.

Although not being legally required to do so, we have decided to consider principal adverse impact of investment decisions on sustainability factors across all managed funds. Please refer to our Principal adverse impact statement for a description on how we consider this matter.

SFDR article 5 of Regulation (EU) 2019/2088

Financial market participants – including alternative investment fund managers – must include information on how those policies are consistent with the integration of sustainability risks in their remuneration policies, as well as make that information public on their websites.

We have both a remuneration policy and a diversity policy. The policies have been designed to align the personal objectives of our employees, considering our risk profile, values and long-term interests and funds managed by us, and to ensure that all relevant factors are considered when we hire, evaluate, and promote our employees.

As part of the semi-annual performance review, we have a specific focus on compliance with ESG policies and procedures and with our values and principles. This way, we emphasise the importance of these matters and support good corporate governance as well as sustained and long-term value creation for our investors.

To further strengthen the setup and overall alignment of interests, we also have an external remuneration policy. It outlines the principles on how to handle investments with respect to aligning remuneration of the executives of the investment target company or portfolio companies with performance, the long-term strategy, and the sustainable business goals of the investments.

We continue our work to ensure that the remuneration policies support our efforts to integrate sustainability risks in all relevant processes.

SFDR article 5 of Regulation (EU) 2019/2088

Financial market participants – including alternative investment fund managers – must include information on how those policies are consistent with the integration of sustainability risks in their remuneration policies, as well as make that information public on their websites.

We have both a remuneration policy and a diversity policy. The policies have been designed to align the personal objectives of our employees, considering our risk profile, values and long-term interests and funds managed by us, and to ensure that all relevant factors are considered when we hire, evaluate, and promote our employees.

As part of the semi-annual performance review, we have a specific focus on compliance with ESG policies and procedures and with our values and principles. This way, we emphasise the importance of these matters and support good corporate governance as well as sustained and long-term value creation for our investors.

To further strengthen the setup and overall alignment of interests, we also have an external remuneration policy. It outlines the principles on how to handle investments with respect to aligning remuneration of the executives of the investment target company or portfolio companies with performance, the long-term strategy, and the sustainable business goals of the investments.

We continue our work to ensure that the remuneration policies support our efforts to integrate sustainability risks in all relevant processes.

SFDR ARTICLE 5 OF REGULATION (EU) 2019/2088

Sustainability is at the core of AIP’s identity. To reflect this in the remuneration principles, AIP has a framework in place for ensuring that employees’ contribution to AIP’s sustainability impact is accounted for.

During the annual employee review and feedback process, ESG factors are evaluated as one of the parameters in AIP’s performance evaluation system by assessing employees’ compliance with the ESG Policy and Responsible Investment Policy. The ESG metrics are part of the overall performance assessment, which influences career development and remuneration. The ESG Policy and Responsible Investment Policy ensure that sustainability-related financial risks are integrated in the investment decision process. Sustainability risks are thereby indirectly linked to employees’ performance evaluation and variable remuneration through the general requirement that employees comply with AIP’s policy and procedures