As an investor and active owner with a diverse and global portfolio, we are committed to drive sustainable change. We invest in B2B companies in energy and technology and seek to minimise and mitigate any adverse impacts we may have on ESG matters, both in our own operations and across our value chain where possible.
Our approach to sustainability spans in both phases of our activity as a company:
The investment phase: Sustainable and transition financing is essential to reach the objectives of the Paris Agreement, as well as supporting agreements like the EU Green Deal. When Arendals Fossekompani screens and sources new companies for M&A, ESG is an essential consideration. Our primary investment universe focuses on B2B companies in sustainable energy and technology sectors, and new investments that we make must contribute to, or have the potential to be transformed to contribute to, at least one of the six environmental goals outlined in the EU Taxonomy.
The ownership phase: ESG is part of the business value creation process, and at times a key value creation lever for our portfolio companies. We believe in active, long-term, and responsible ownership, such that we can engage deeply with our portfolio, including on issues relating to sustainability.
“By maintaining essential consideration to our ESG principles in both phases of our activity as a company, we are able to drive sustainable change,” says Ingunn Ettestøl, Chief Sustainability Officer at Arendals Fossekompani.
A materiality-based approach
Arendals Fossekompani reviews and updates its strategies on sustainability and prioritises its efforts therein based on annual double materiality assessments. These assessments include:
- mapping ESG matters through the value chain
- assessing stakeholders and their focus areas
- analysing consequences of ESG for the company, including risks and opportunities, and stakeholders and megatrends, and
- prioritising ESG challenges and identifying KPIs and ambitions, and actions to achieve them.
As a noted company, Arendals Fossekompani must report according to CSRDA (Corporate Sustainability Reporting Directive). The CSRD is a regulation introduced by the European Union to enhance and standardize sustainability reporting across companies. The directive aims to support the EU's goal of becoming carbon neutral by 2050 and to enhance the flow of sustainable investments.
“Of course, reporting does not improve the condition of the Earth, but transparency, strategy, targets and KPIs keeps companies honest and motivated to do the right thing,” says Ettestøl.
In 2025, Arendals Fossekompani`s strategic focus areas are:
Climate Change
Arendals Fossekompani Group contributes to climate change through our greenhouse gas emissions, but we also work to combat it, both through our renewable power production and services. We are vulnerable to a changing climate, if we do not adapt.
Resource Use and Circular Economy
We rely on the extraction of raw materials upstream, particularly for the production-heavy companies in the group.
Own Workforce
With over 2,600 employees globally, Arendals Fossekompani as a group is reliant on our people as our most valuable asset. This dependency on employees’ wellbeing and safety presents a financial risk that requires continuous attention. We also see an opportunity to continue nurturing diversity and equality throughout the group’s global workforce.
Business Conduct
With own operations in 24 countries and sourcing from many more, the Arendals Fossekompani Group is exposed to corruption risks in business conduct and generally risks of breaches to our corporate conduct that require ongoing focus. We are also vulnerable to cyber-attacks, which demand sophisticated prevention and strong internal controls.
“With a broad global portfolio and operations in multiple regions, Arendals Fossekompani is committed to addressing the key sustainability challenges that impact our entire value chain. Whether it’s tackling climate change, optimizing resource use, or ensuring equal treatment and safety for our workforce, these areas are fundamental to our long-term strategy and value-creation, Ettestøl says.
Availability of data
Companies who are required to report under the new Corporate Sustainability Reporting Directive (CSRD) face many questions. Even with the necessary amount of preparation, navigating the complexities of sustainability reporting can be challenging.
“At this current time, the availability of data is possibly the biggest challenge for us. To some degree, the data we collect is based on calculated assumptions. We are working on increasing data availability, and we’ve asked a lot more questions to the portfolio, so they’re more prepared for the years to come,” says Ettestøl.
You can learn more about our portfolio of energy and technology companies, here.