Impact Strategy

Our approach to sustainability is based on a thorough alignment with international regulations, as well as leading global standards and metrics for measuring and reporting impact. Through our active ownership and sustainability-related requirements, our ambition is to position our portfolio companies as impact champions. 

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The Spectrum of Capital

On the spectrum of capital, CS Capital falls into the category of impact investing, which aims to have a positive impact outcome from a specific investment. As impact investors, this means that it is essential for us to consider environmental, social, and governance (ESG) factors in our investment decisions and use positive screening strategies to select companies or projects that are expected to produce measurable positive impact as well as financial returns

The distinction between impact investing strategies and other types of investments is exemplified in the figure below. 

Source: Adapted from Brandstetter and Lehner (2015)

Impact Investing Framework and Approach

We have developed an in-house impact investing framework which allows us to identify, assess and measure impact in investment opportunities. Our framework ensures that an investment aligns with various impact criteria based on relevant regulations, reporting frameworks and global goals. 

The framework allows us to screen for positive impact opportunities and material risks by incorporating definitions under the SFDR, the EU Taxonomy, and the UN Sustainable Development Goals.

The preliminary screening of the identified opportunities and material risks form the scope for the ESG workstream in the due diligence phase.

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CS Capital's Investor Contribution

We seek to exercise our active ownership through board seats or other relevant auditing roles and ensure that the right ESG competencies are implemented to support the actions set forth and support continued financial performance. 

Quarterly ESG reports culminate in a detailed yearly sustainability report done by the company applying various tools and frameworks, as well as knowledge-sharing from other portfolio companies. 

Sustainability-related considerations will be central for eventual exit options, in which the ambition is to nurture a ‘green premium‘ for valuation optimization. 

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