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 issues
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 certified 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. Dasos has responded to these demands by developing and piloting of SDG reporting, and developing and adopting comprehensive forest carbon monitoring and reporting system.SDG reporting
Reporting on Sustainable Development Goals (SDGs) is an integral part of Dasos sustainability strategy. 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:
- monitor natural capital outcomes;
- help communicate a shared purpose between Dasos and the investors about sustainability impacts based on a known, credible and practicable methodology;
- enhance value creation avenues based on sustainable practices;
- identify and mitigate the environmental, social and economic risks; 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)
- emissions due to silvicultural operations and harvesting; and emissions due to transport.
Dasos carbon footprint is reported as part of the annual SDG report.
