Responsible investment is a vigorously growing trend globally, creating value for investors and the society in general. We have witnessed steady progress in the environmental, social and governance (“ESG”) performance of our portfolio companies and are happy to share the results by presenting our 8th annual ESG report.
Continuing the positive developments of previous year, our portfolio companies posted strong results also in 2018 – the aggregate revenues reached €649 million, EBITDA €67 million and the total number of employees 8000.
The results mirror organic growth throughout the entire range of observed ESG aspects. The understanding of the relevance, risk and opportunities of sustainable and responsible business practices is maturing increasingly.
„The success of the businesses depend on the ability to align their strategies with ESG issues and we support our portfolio companies in becoming stronger and more competitive in that sense. Yet we expect our portfolio companies to follow the highest legal and ethical standards,“ said Martin Kõdar, Managing Partner of BaltCap.
The overall BaltCap ESG Index (the average result of portfolio companies) improved slightly over the previous year, reaching 52%. Although we updated both the questionnaire and the methodology, a parallel can be drawn between the results for 2018 and previous years, mostly explained by the following three observations seen behind the numbers:
- We witnessed steady progress in almost all observed categories, aspects and single questions
- Portfolio companies with a greater impact perform better
- Companies improved their ESG performance under BaltCap ownership
Please see our full 2018 ESG report available here
BaltCap has been one of the forerunners in responsible investments in the Baltics for years. 2018 was the ninth consecutive year for us to participate in the Estonian Responsible Business Index. As in previous years, BaltCap received a gold-level Quality Label. We are constantly striving to improve our approach to contributing and being part of a sustainable future.