research & reports

In brief: INVL compares portcos’ ESG progress with fund-specific index

The INVL Baltic Sea Growth Fund’s portfolio companies scored higher on social than environmental issues last year.

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Lithuanian firm INVL Asset Management has released the first ESG report for its €165 million Baltic Sea Growth Fund.

The report includes a proprietary index that INVL has developed to compare the ESG performance of portfolio companies. The index is based on SASB standards, while environmental, social and governance categories are weighted differently according to the portfolio company’s industry, the report says.

Lithuanian medical company InMedica scored 66.9 out of 100 on the index; waste management company Eco Baltia scored 64.7; medical mobility manufacturer MBL scored 52.0; and Lithuanian engineering company Montuojas scored 42.2.

Broken down by category, the average social score across the portfolio was 78.1 out of 100; the average governance score was 52.2 and the average environmental score was 42.5. The two highest-scoring sub-categories were on occupational accidents and health and safety issues. The two lowest-scoring sub-categories were resource efficiency measures and environmental management procedures.

Investors in the fund include the European Investment Fund – which invested €30 million – and Estonian pension fund AS LHV Group. The fund closed in February 2020.