Sustainability - Dasos Capital

Enhancing EverGreen.

Dasos Contribution to Responsible Investment

Sustainability and delivery of Natural Capital Outcomes are at the core of Dasos investment rationale, value creation and risk management.

ESG (Environment, Social and Governance) on integroitu jokaisen yksittäisen sijoituspäätöksen tekoon ja Dasoksen harjoittamaan aktiiviseen omistajapolitiikkaan.

Euroopan parlamentin ja neuvoston asetuksella (EU) 2019/2088 tarkoitetaan kestävyyteen liittyvien tietojen antamista rahoituspalvelusektorilla (tiedonantoasetus, SFDR). Kaikki paitsi yksi Dasoksen vastuullisen sijoittamisen rahastoista edistävät ympäristöön ja/tai yhteiskuntaan liittyviä ominaisuuksia (ns. kestävyyttä edistävät sijoitustuotteet, tiedonantoasetuksen artikla 8). Yhden Dasoksen vastuullisuuden sijoittamisen rahaston tavoitteena on taksonomia-asetuksen mukaisten kestävien sijoitusten tekeminen sekä hiilipäästöjen vähentäminen (ns. kestävät sijoitustuotteet, tiedonantoasetuksen artikla 9).

Dasos-rahastojen sijoitusprosessia ohjaavat ESG-periaatteet ja sektorikohtaiset ympäristö- ja yhteiskuntavastuupolitiikat ja -ohjeet. Dasos-rahastoja ohjaavat myös Kansainvälisen rahoitusyhtiön (IFC) ympäristö- ja yhteiskuntavastuustandardit, Equator Principles sekä Euroopan unionin (EU) ympäristöpolitiikan periaatteet. Dasos on allekirjoittanut YK:n vastuullisen sijoittamisen periaatteet (PRI) ja on jäsen Finland’s Sustainable Investment Forum ry:ssä (FINSIF).

Investointimme pyrkivät myötävaikuttamaan Pariisin ilmastonmuutossopimuksen tavoitteisiin: vähentää kasvihuonekaasupäästöjä ja edistää hiiliraportoinnin läpinäkyvyyttä. Dasos tukee TCFD- suosituksia. TCFD (Task force on climate-related financial disclosures) on kansainvälinen raportointisuositus, jossa ohjeistetaan yrityksiä raportoimaan yhdenmukaisesti ilmastonmuutoksen taloudellisista riskeistä ja mahdollisuuksista.

Vastuullinen sijoittaminen on integroitu Dasos-rahastojen metsäsijoituspolitiikkaan, joka edellyttää, että sijoitusten on oltava ympäristöä kunnioittavia ja sosiaalisesti sekä taloudellisesti kestäviä. Metsäsijoituspolitiikassa todetaan myös, että kaikkien Dasos-rahastojen sijoitusten on oltava kansainvälisten ja/tai kansallisten kestävän metsänhoidon periaatteiden standardien mukaisia määriteltynä FSC (www.fsc.org) ja PEFC (www.pefc.org) metsien kestävyyden sertifiointijärjestelmissä.

ESG issues

Referring to the Regulation (EU) 2019/2088 of the European Parliament and of the Council on sustainability‐related disclosures in the financial services sector, all Dasos investment funds at least promote the environmental and/or social characteristics (SFDR Article 8). In addition, the objective of one of Dasos investment funds is to make sustainable investments in accordance with the Taxonomy Regulation and to reduce carbon emissions (SFDR Article 9). Dasos investments are sustainability themed and we integrate sustainability/ESG concerns in all stages of the investment cycle.

Since the first Dasos fund was launched in 2009, environmental, social, and governance (ESG) planning, execution, monitoring and reporting have been integral parts of the investment cycle and reporting. ESG matters are considered from the flow identification and due-diligence (DD) stage to asset management to enhance returns during operations and value at exit. In the Dasos approach, ESG is not only about compliance and mitigating possible negative social and environmental impacts but DD and asset management aim at identifying ways to enhance positive impacts to enhance returns and natural capital outcomes whenever possible. The ESG work is guided by a comprehensive Dasos Forest Investment Policy, which integrates International Finance Corporation’s (IFC) environmental and social safeguards, the European Union’s (EU) environmental policies, and the Equator principles.

According to Dasos Forest Investment Policy, all forest assets are to be cerfied independently as sustainably managed based on Forest Stewardship Council (FSC®) and/or Programme for the Endorsement of Forest Certification (PEFC®). Forest certification is a key tool in measuring independently, based on audits, investment’s sustainability performance and adding value to the asset. It provides a platform and framework for planning, implementing and monitoring ESG at a project (investment) level. Over the years many global/regional policy and regulatory developments, influencing mandatory and voluntary ESG practices, have taken place including: UN adoption of Sustainable Development Goals (SDGs) in September 2015; the Paris Agreement on reducing global warming; Task Force on Climate-related Financial Disclosures (TCFD) framework for climate disclosure in the financial sector; EU carbon emission reduction targets; EU Biodiversity Strategy and 2030 targets; and EU ESG Disclosure Directive and Sustainable Finance Taxonomy and related delegated regulations. Dasos has responded to these demands by developing and adopting UN Sustainable Development Goal (SDG) impact monitoring and reporting, and developing and adopting comprehensive forest carbon monitoring and reporting system which feed information responding to the new EU ESG-related regulatory requirements.

SDG reporting

Reporting on Sustainable Development Goals (SDGs) is an important part of the Dasos sustainability approach. Dasos SDG reporting framework focuses on six SDGs and eleven social, economic, and environmental indicators, based on materiality assessment.

For example, under SDG 7, Dasos reports on Fossil Energy Replaced by Wood-based Energy, under SDG 12 Certified Wood Volume Sold of Total, and under SDG 13 Reduction of Greenhouse Gas Emissions.

The integration of SDGs into Dasos ESG management creates an opportunity to e.g.:

help communicate a shared purpose between Dasos and the investors about sustainability impacts based on a known, credible and practicable methodology;
monitor natural capital outcomes; and
measure value targets beyond financials metrics.

Positive carbon outcomes and forest carbon accounting

Dasos investments contribute to the implementation of the Paris Agreement on climate change to reduce global greenhouse gas emissions and improve transparency of carbon reporting. Dasos has adopted a system–wide approach to forest carbon accounting by asset and at portfolio level. The system accounts separately for changes in carbon stock and emissions by:

carbon stored above-the-ground biomass;
carbon stored under soil;
carbon stored in harvested wood products (including substitution effects); and
emissions due to silvicultural operations and harvesting; and emissions due to transport.

Dasos carbon footprint analysis feeds into the annual SDG reporting, UN PRI reporting, and into EU SFDR-related annual reporting, and is also recently integrated into annual financial reporting.

Learn more about Timberland and Natural Capital as Sustainable Forest Investment

Sustainability-related disclosures

Sustainable finance disclosures (SFDR)

This statement includes mandatory disclosures under Regulation of the European Parliament and of the Council on Sustainability-Related Disclosures in the financial services sector (EU) 2019/2088 (“SFDR”).

Lue lisää

ESG (Environment, Social and Governance) on integroitu jokaisen yksittäisen sijoituspäätöksen tekoon ja Dasoksen harjoittamaan aktiiviseen omistajapolitiikkaan.

Dasos Capital Oy (“Dasos”), authorised alternative investment fund manager, makes the following disclosures in accordance with Articles 3(1), 4(1)(a) and 5(1) of the Sustainable Finance Disclosure Regulation (2019/2088) (the “SFDR”).

Transparency of sustainability risk policies

Dasos integrates sustainability risks in its decision-making process, as referred to under Article 3 of the SFDR. Sustainability risk means an environmental, social or governance event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the investment. Environmental risks can relate to, among others, to climate-related risks (physical and transitional), biodiversity or pollution. Social risks can relate to for instance safety and well-being, human rights in the supply chain, and employee or tenant satisfaction or others. Governance risks can relate to for example inadequate management of ESG, management incentives, corruption, bribery, cybersecurity, or data privacy. The potential sustainability risks to which any investment is exposed may cause a negative impact on the value of investments. Corporate level materiality assessment has identified environmental (climate and biodiversity risks and opportunities as a major area of attention.)

Before any investment decisions are made, and as part of its overall investment analysis, Dasos identifies the material sustainability risks, as well as opportunities, associated with the proposed investment. Investment decisions will then be made by referencing the relevant investment policies and objectives, including an action plan for mitigating any sustainability risks at asset level and enhancing asset value.

Description of and policies to identify and prioritise sustainability risks as well as the investment restrictions in certain sectors and activities are included in Dasos Forest Investment Policy and Principles of responsible and sustainable investment.

Transparency of adverse sustainability impacts

Dasos considers principal adverse impacts on sustainability impacts of its investment decisions as described by Article 4 of the SFDR.

Sustainability factors may impact the revenue and cost structure of target investments directly, or have external impacts, such as impacting the quality of life for community stakeholders or perceived value for customers. Accordingly, they may also impact the return on investment. Dasos strives to integrate sustainability factors with its general core business, creating a strong culture that drives sustainable practices both at Dasos and in its portfolio companies.

These principal adverse impacts are identified and prioritised through Dasos due diligence processes. Dasos reviews the principal adverse impacts annually and discloses the information in its Principal Adverse Impacts Statement.

Transparency of remuneration policies in relation to the integration of sustainability risks

Dasos considers the integration of sustainability risks when determining remuneration, as described by Article 5 of the SFDR (Remuneration policy).

Scope

All Dasos investment funds at least promote the environmental and/or social characteristics (SFDR Article 8). In addition, the objective of one of Dasos investment funds is to make sustainable investments in accordance with the Taxonomy Regulation and to reduce carbon emissions (SFDR Article 9).

Dasos funds covered in this statement are listed below together with their classification made under the SFDR.

Fund	SFDR Art	Targeted investor group	Art 10 product disclosures
Dasos Sustainable Forest and Wood III AIF	8	Professional and non-professional investors	Art 10 Product disclosure
Dasos Timberland Fund I SICAV-SIF	8	Professional investors	Art 10 Product disclosure
Dasos Timberland Fund II SICAV-SIF	8	Professional investors	Art 10 Product disclosure
The Foraois Ltd Partnership	8	Professional investors	Art 10 Product disclosure
Dasos Habitat Fund Ky	9	Professional investors	Art 10 Product disclosure

Principal adverse impacts (PAIs) statement

Dasos considers principal adverse impacts of its investment decisions on sustainability factors. The present statement is the principal adverse sustainability impacts statement for the period 1 January to 31 December 2022.

PAI-statement

Signatory of the UN PRI

The PRI initiative is an international network of investors working together to put the principles for responsible investment into practice. The initiative aims to help integrate ESG issues into investment practices. Every year the PRI signatories are evaluated against the implementation of these principles in their investment policies and practices. Dasos became a signatory in September 2011.