Responsible investment

Criteria for new investments

02 Sustainability Responsible Investment

Our commitments

As an industrial investment company, Arendals Fossekompani is constantly looking for new investments and M&A opportunities. We invest in technology related companies in which we can significantly impact long-term value creation. Potential new joint ventures, investments and M&A candidates will be evaluated related to AFK's responsible investment scope and screening process.

Key results 2021

100%

ESG onboaring of new investments

65%

EU Taxonomy eligibility in AFK group

Score B

in CDP (Climate Disclosure Project) rating

What we look for

Arendals Fossekompani is looking for investments related to the three core sectors where we have our strengths and competencies: Digitalization, electrification and green energy.

Digitalization is one of the important pillars for EU to be able to transform their economy. For investments in companies in the digitalization space, the criteria of "do no significant harm" (DNSH) is essential.


New investments related to electrification and green energy must meet a wider set of investment criteria. Our investments in these two sectors should show a potential to contribute to, or to be transformed to contribute to, one of the six environmental objectives defined by the EU Taxonomy, as well as the DNSH criteria.


The investment should do no significant harm to the other five objectives, and; the investment should meet minimum safeguards, such as OECD Guidelines and more.

Green financing

Arendals Fossekompani's Green Bond Framework is aligned with the Green Bond Principles published by the International Capital Market Association (ICMA). It defines investments eligible for financing by green bonds issued by Arendals Fossekompani. In addition, this Green Bond Framework outlines the process used to identify, select and report on eligible projects.


Use of proceeds for the green bond is related to two categories: Renewable energy and eco-efficient and/or circular economy adapted products, production technologies and processes.

Ambitions and goals for 2022

1

100% ESG onboarding

100% ESG onboarding

Ensure new investments are ESG onboarded.

2

100% EU Taxonomy eligibility

100% EU Taxonomy eligibility

in new investments.

3

Become member of PRI

Become member of PRI

The PRI (six Principles for Responsible Investment) is the world’s leading proponent of responsible investment.

4

Develop best practive sustainability manual

Develop best practive sustainability manual

for M&A processses and business development.