Environmental Factors GP Should Take Into Account in Relation to the Management of the Fund's Portfolio Companies

Ilya Alkhimov, Kristina Laasma, Svetlana Kotka

May 8, 2021 — 1 min read

Explanation

In general, GPs should support a prudent and sustainable approach to environmental risks and opportunities that may affect their portfolio companies. Such risks could relate to a range of factors including resource use/consumption, water scarcity, waste production and disposal; emissions in air, land and water; energy use, carbon costs and climate change; biodiversity and habitat conservation. Conversely, environmental opportunities may include energy (or other resource) efficiency improvements, waste reduction or the development of new products with positive environmental attributes (e.g. the use of wood from sustainably managed forests).

GPs are generally expected to influence the management of environmental risks and opportunities in portfolio companies to reduce risk and/or create value, with the goal of long-term, sustainable change.

Recommendation

Investment management should include an ongoing assessment of the likely environmental impacts of portfolio companies, their products and their supply chains. Such assessment should consider the effectiveness of environmental risk management policies and procedures. For example, leading companies implement full environmental management systems that certified to ISO14001. It should also consider the likely impact of environmental factors on portfolio companies and their supply chains (e.g. climate change, extreme weather events, etc.).

GPs should recommend to portfolio company boards, as per shareholder documentation, that material environmental factors be identified and considered in the formulation of the portfolio company's business plan.

Cino attracted €500K investments at Latitude59

Huge congratulations to our client Cino on their achievement (€500,000 investments👏) at Latitude59! The eleventh Latitude59, attended by 3,000 people, was themed “Be Bold”. Almost 400 startups from 61 countries applied for Latitude59’s traditional pitch competition. Both early-stage and more mature technology companies were invited to the

International Sanctions in Estonia and the EU. The Subject.

The terms used in this article are defined in the ISA, in the legal act implementing international sanctions, the Financial Action Task Force’s (hereinafter: FATF) recommendations made in 2012 and the 2013 methodology dictionary, or in EU guidelines and other guidance materials.

One Person as a Board Member and as a Compliance Officer – The Proper Way of Applying and Conflicts of Interest

Compliance with the principles of good corporate governance shall start with the board and its responsibility to foster the long-term success of the company and secure its sustained competitiveness.

Personal Holding Company for Tax Planning

In this post, we will review how entrepreneurs and business owners can use foreign companies for tax optimization.