As a majority investor and active owner, we have both the responsibility and the opportunity to advance sustainability performance as part of creating resilient businesses and strong financial returns.
We integrate sustainability into our systematic value creation approach by setting clear expectations, supporting company-specific initiatives, and embedding sustainability into governance, management processes and reporting.
Our portfolio companies are part of local communities and global value chains. We believe that environmental, social and governance performance is closely linked to competitiveness, operational resilience and long-term value creation.
Responsible ownership is not separate from value creation – it is part of building stronger businesses.
Our sustainability approach
We apply a systematic, hands-on approach to value creation that integrates sustainability throughout the investment lifecycle – from acquisition and through our ownership towards exit.
Our Responsible Investment Policy sets the principles and boundaries for responsible investment, while our ESG Framework defines how we apply these principles in practice.
The ESG Toolbox supports implementation through minimum requirements, guidance and tools that help portfolio companies translate ambition into measurable progress. Our approach is built on three principles: integration, accountability and transparency.
As an active owner, we invest to be the catalyst of positive transformation of businesses from within. Our systematic operational approach create value for businesses, people and investors that last beyond our time as owners.
Supports framework application
Defines practices
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Responsible Investment
Strategy
Stories from our portfolio
CataCap annual ESG report
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Focus areas
Our sustainability approach combines cross-cutting minimum requirements with a materiality-based approach tailored to each portfolio company.
Because our portfolio spans different sectors, business models and value chains, material topics vary from company to company. We therefore ask each company to identify the sustainability topics most relevant to their financial performance, operational resilience, people and the environment.
These priorities are translated into company-specific initiatives, KPIs and investment.
Our minimum requirements towards portfolio companies
While our general sustainability approach is based on a materiality principle, a number of minimum requirements related to environmental, social, and governance topics are applied across our entire portfolio. The requirements cover topics relevant across most portfolio companies and establish a common baseline. We aim to ensure that each company meets the requirements within 12 months of investment.
Environmental
- Measure and report on energy use and Scope 1, 2 & 3 emissions
- Set reduction targets at least covering own operations
Environmental
- Work to ensure diversity at the Board of Directors
- Ensure gender representation in potential candidates for management positions
- Actively work with organisational development and monitor employee engagement at least annually
Environmental
- Work with the UN Global Compact’s 10 principles as a member
- Implement a Code of Conduct for employees and relevant business partners
- Ensure good governance
ESG integration in the investment process
We integrate sustainability into the way we invest - from screening and due diligence to ownership, reporting, and exit.
Acquisition
1
Screening
- Identification of potential red flags and opportunities
- Screening against investment strategy, Responsible Investment Policy and exclusion criteria
2
Due diligence
- ESG Due Diligence tailored to sector exposure and company maturity
Ownership
3
Active ownership
- Hands-on approach: ESG Toolbox applied with management teams to integrate ESG into strategy and operations
- Minimum ESG requirements for all portfolio companies within 12 months
- Raise ESG to the board agenda and build maturity
- Monitoring of progress
4
Portfolio company reporting
- Setting ESG ambitions and reporting on progress is part of ESG toolbox
- This includes annual reporting of portfolio companies’ ESG efforts & KPI’s to CataCap and other relevant stakeholders as part of ESG toolbox
Exit
5
Exit preparations
- Document ESG performance, maturity and key opportunities
Acquisition
Integrating sustainability into all investment decisions
During screening, we identify material sustainability-related risks, opportunities and potential red flags, including alignment with our Responsible Investment Policy and exclusion criteria. ESG due diligence is always conducted pre-investment and tailored to the company’s sector exposure and maturity. Findings are presented to the Investment Committee and incorporated into the development plan.
We aim to invest in companies where we have identified an opportunity to help improve sustainability performance as part of our overall value creation approach or in companies with a business model already contributing positively to the sustainability agenda.
Ownership
Supporting our portfolio companies
We aim to empower and support our portfolio companies to actively work on improving diversity and ESG performance as part of our overall long-term value creation approach. Further, we seek to support initiatives fostered in our portfolio companies. This also includes organizational and leadership development focusing on enhancing organizational health, as well as the formulation of a development plan for each portfolio company aimed at integrating ESG issues relevant to the specific industry or company.
To ensure a strong foundation, every portfolio company is required to meet CataCap’s ESG minimum requirements within the first year of ownership. These include working with at least three company-specific ESG KPIs, measuring and reducing greenhouse gas emissions in alignment with the GHG Protocol, ensuring board and management diversity, joining the UN Global Compact and reporting annually, implementing a code of conduct, and actively strengthening organizational development and employee engagement.
We acknowledge that errors and mistakes may happen – also when working with aspects concerning environment, social and governance. To us, the important part is how you correct them and embrace the learning opportunity. We believe that errors and mistakes provide valuable input, and we consider it crucial to learn from possible errors and mistakes as part of our value creation.
Value-creation beyond our time as owners
We care about societal impact. And we know investors do too. Our systematic operational approach for value creation catalyses growth and creates value for our portfolio companies that endures beyond our time as owners. We have a clear ambition that by the end of our investment lifecycle, our portfolio companies will have developed and improved their sustainability performance.
Documenting this journey is important, which is why progress is tracked and shared with our investors throughout our ownership. At exit, this also helps provide a transparent account of how sustainability has contributed to value creation and how the company is positioned for continued responsible growth under new ownership.
Our commitments
At CataCap, we support and align our practices to global initiatives and frameworks aimed at heightening transparency and creating common industry standards.
CataCap is a licensing organisation of the SASB Standards, which is applied as part of our ESG Framework.
We are also a signatory of Principles for Responsible Investment (PRI) and are committed to the principles of the United Nations Global Compact, where our portfolio companies are – or will become – members of United Nations Global Compact.
In 2025, we became a member of the ESG Data Convergence Initiative (EDCI). EDCI is a partnership of private markets stakeholders seeking to streamline the industry’s approach to collecting and reporting ESG data.
CataCap is also a member of Active Owners Denmark and complies with existing ethical guidelines for responsible ownership.
Sustainability governance and reporting
Our Investment Team is responsible for integrating ESG into the investment process, with support from our ESG team, while the Investment Committee oversees ESG findings as part of all final investment decisions. The Board of Directors reviews and approves our Responsible Investment Policy on an annual basis.
We report semi-annually to investors on sustainability performance across our funds and publish an annual external ESG Report. Additionally, portfolio companies submit an annual Communication on Progress to the UN Global Compact as part of their membership obligations.