Purpose & Patience, our two guiding principles in our investments, also apply to Sofina’s approach towards Environmental, Social and Governance (“ESG”) matters. As a long-term minority investor, Sofina builds relationships with partners who share our values and seek to ensure the sustainability of their businesses through sound governance principles, attention to human capital and its environmental footprint, and an emphasis on ensuring their business has a positive impact on the UN Sustainable Development Goals (the “SDGs”).
The principles underpinning ESG have long been at the heart of Sofina’s strategy. Sofina formalised them through six principles and beliefs (set out below) which constitute the compass of its ESG journey.
Sustainable growth
The commitment to create enduring value lies at the heart of Sofina’s culture. Our role as a long-term shareholder and investor is to foster sustainable growth. We believe that assessing the effect of our actions and those of our portfolio companies on all dimensions of society and environment, as well as positively impacting our communities, is the foundation of any sustainable value creation.
Risk reduction and value creation
ESG issues are and will continue to be one of the defining challenges of this decade. This challenge, much like those before it, presents risks and opportunities. We aim to mitigate the former and embrace the latter as we believe that giving attention to ESG issues reduces risk and creates value, while having a positive impact on society.
For all stakeholders
We believe there is no trade-off between investment returns and responsible investment. We are also convinced that to achieve sustainable returns, we need to grow the value our activities bring to all our stakeholders.
A process and a path
Maximisation of the impact of our business for our stakeholders is a continuous process and a path, more than a destination to be reached. Our commitment is to follow the path and to progress. We will therefore report our achievements on a yearly basis and commit to positive change.
Recognition and respect of differences
As a global investor, we recognise that ESG issues though relevant globally, will not find the same expression in the regions and sectors in which we are active. Our approach will recognise and respect these differences, whilst our commitment to progress will remain the same.
Inspiration for our portfolio
Our ESG commitments are also a commitment made by each and every one working at Sofina. We believe that Sofina must act on ESG matters and be an inspiration for our portfolio companies active in sectors in which incorporating ESG considerations in decision-making is more challenging.