Sustainability disclosures
Sustainability risk policies
At Northern Horizon Capital A/S and its subsidiaries (“Northern Horizon”) we acknowledge that our real asset activities affect the society and environment around us. Consequently, we have integrated sustainability factors into our investment decision‐making process. By sustainability we mean environmental, social and governance (“ESG”) dimensions of our investment activities.
Northern Horizon has adopted two policies to ensure that sustainability risks are considered in a consistent and coherent manner in connection with all investment decisions. The cornerstone of our sustainability evaluations is our Responsible Investment Policy, which is complemented by our Portfolio Management Policy. Our remuneration policy is also aligned with our Responsible Investment Policy so as to support taking sustainability factors into account in our investment decision‐making process.
According to our policies, sustainability factors and associated risks are considered as part of the due diligence process on targeted investments and the summary conclusion provided as part of the investment proposal. The sustainability factors covered in connection with investment decisions include, but are not limited to:
- Assessment of energy performance – energy supply and access to renewable energy, sources of energy consumption data, energy ratings, building certification, emissions and other relevant topics
- Assessment of environmental aspects – building materials, contamination, water efficiency, water supply, waste management and other relevant topics
- Assessment of social aspects – building safety, indoor environmental quality, health and wellbeing, green clause provisions, tenant and landlord ESG collaboration, other relevant topics
- Risks associated with new construction and renovations – site selection, biodiversity, developer selection, waste management, building materials and other relevant topics
- Other topics – access to transport links, regulatory risks, review of climate change related transition, physical and social risks
Responsible Investment Policy
| Policy history | Policy update |
| November 2024 | Due diligence and criteria for assets under construction were adjusted and added, engagement and asset management principles were clarified. |
| November 2023 | The policy was updated to include definitions for the terminology in accordance with SFDR. Guiding principles were updated to correspond with the organizational changes and taking into account other corporate policies. |
| September 2022 | Reference to the Human Rights risk assessment methodology made in the policy. |
| May 2022 | The policy was supplemented with the human rights policy and minimum safeguard aspects. The policy name was adjusted accordingly. |
| March 2021 | Review and update to comply with applicable legislation (SFDR). |
Principal adverse impact statement of Northern Horizon Capital AIFM Oy
Statement on principal adverse impacts of investment decisions on sustainability factors
Remuneration policy
Northern Horizon has adopted a remuneration policy, which reflects the Group’s objectives for good corporate governance, sustained and long- term value creation for investors and shareholders of the Group, as well as the sustainability objectives.
According to the policy, when assessing individual performance of an identified staff member and all other employees, financial as well as non-financial criteria shall be taken into account. The non-financial criteria, can include, but are not limited to ESG specific criteria relevant to an individual fund and / or the Group. Also, the Board of Directors may, in respect of deferred variable remuneration, decide to cancel the payment of the remuneration in whole or in part. This might apply as an example when business objectives are not achieved, including but not limited to ESG objectives.
