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Investing in sustainable aquaculture for a resilient food system

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Stockholm, October 7th – A report published today by Summa Equity (“Summa”), as a part of its food system transformation series, identifies the future state of salmon aquaculture could yield EUR 1bn in savings, close half of the anticipated feed gap, and cut CO2 emission by two-thirds.

Aquaculture, or the farming of aquatic plants and animals, plays a vital role in addressing the growing global demand for sustainable protein sources.

This report explores the opportunities and challenges within the aquaculture sector, particularly the farming of salmon. It focuses on sustainable practices that align with ecological boundaries and the broader goals of the global food system.

Current aquaculture practices face sustainability challenges, such as habitat destruction, unsustainable feed sourcing and the management of pathogens and parasites. Despite these challenges, innovative solutions and technologies are emerging, including closed-loop systems, land-based farming and alternative feed ingredients. These innovations not only address environmental concerns but also offer compelling investment opportunities, particularly in the farmed salmon sector, which has grown significantly due to its efficiency and lower resource intensity compared to other protein sources.

Summa’s investment strategy aligns with these opportunities, targeting areas such as land-based and closed-pen farming, preventative measures to improve fish health and alternative feed ingredients. Investments in Nofitech and STIM exemplify commitment to supporting sustainable aquaculture practices that enhance both industry profitability and environmental responsibility.

As the aquaculture industry evolves, a systems-based approach that anticipates and adapts to emerging challenges will be essential. Summa is well-positioned to lead in this transformation, ensuring that aquaculture contributes to a more sustainable and resilient global food system.

Are you interested in learning more? Download the full report via the button below.

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  4. Report on climate and nature 2023

Report on climate and nature 2023

We are facing an existential environmental crisis. Climate change, depletion of natural resources, and biodiversity loss are all major issues that need to be addressed.

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A forceful response is necessary, which will require a paradigm shift in human activity to mitigate and adapt to the impacts of these issues. It is vital that immediate action is taken to address these issues, as the longer we wait, the more difficult and costly it will be to solve them.

Summa Equity (“Summa”) has chosen to align with the frameworks Task Force on Climate-related Financial Disclosures (“TCFD”) and Taskforce on Nature-related Financial Disclosures (“TNFD”) to support the work of identifying and managing climate and nature-related risks and opportunities.

TCFD and TNFD framework

  • Governance

    A. Board of Directors
    B. Management
    C. Human rights

  • Strategy

    A. Identified impacts, dependencies, risks and opportunities
    B. Effects on Summa’s investment strategies
    C. Scenario analysis
    D. Geographical presence

  • Risk management

    A. Identification of impacts, dependencies, risks and opportunities
    B. Management of impacts, dependencies, risks and opportunities
    C. Integration of climate- and nature-related risks into risk management

  • Target and metrics

    A. Metrics for assessing risks and opportunities
    B. TCFD: Reporting concerning greenhouse gases. TNFD: Metrics of nature-related impacts and dependencies
    C. Targets

Governance

Summa’s management of climate and nature-related dependencies, impacts, risks, and opportunities

Summa is a purpose-driven, thematic investment firm that invests in and develops companies that provide new and innovative solutions for a more future-proof world. Summa is owned by its partners and the Summa Foundation.

Governance of our commitments and actions on climate and nature sits at the highest level of Summa – the Summa Board. The CEO has the overall responsibility for the operational work on climate change, depletion of natural resources, and biodiversity for Summa, but the strategic work is developed together with the thematic partners, the management team, and the impact director.

Strategy

The effects of climate- and nature-related dependencies, impacts, risks and opportunities on Summa’s business model and strategy

Summa was founded in 2016 with the aim of investing to solve global challenges. This means that Summa does not only manage the risks related to climate and nature, but also actively invests in companies that contribute to solving challenges related to climate and nature through their products and/or services. We fundamentally believe that this approach does not only futureproof the portfolio in terms of sustainability, we believe that it is also a prerequisite for good long-term financial returns. Summa integrates sustainability considerations, including climate and nature impacts throughout screening, analysis, due diligence, and the path to value creation.

Summa does not invest in certain sectors that are considered high-risk from a climate and nature perspective, e.g. fossil fuels, and mining.

Through active dialogue and collaboration, Summa also works to influence positive change within its portfolio, fostering a culture of sustainability and resilience, e.g. through impact roundtables where we invite representatives from the portfolio companies to discuss sustainability-related topics, including climate and nature.

In addition to risk mitigation, Summa seeks to capitalize on emerging opportunities arising from the transition to an economy within planetary boundaries. By investing in innovative solutions and technologies that address climate and nature-related challenges, Summa aims to generate positive environmental impact while delivering attractive returns for its investors.

Risk management

Identification, management, and integration in Summa’s overall risk management of climate and nature-related dependencies, impacts, risks, and opportunities

Summa has established processes to identify, assess, prioritize, and manage climate and nature-related risks throughout the investment process.

Climate and nature-related risks are systematically identified, assessed, and managed across the organization’s operations and investment portfolios. Summa integrates climate and nature-related risks into its overall risk management system and key risk indicators (“KRI”) reporting process. By incorporating climate and nature considerations into its risk management framework, Summa strives to mitigate potential adverse impacts on financial performance, operations, and stakeholder trust.

Metrics & targets

Metrics and targets used to assess and manage climate- and nature-related impacts, dependencies, risks and opportunities

Given the size of the companies Summa invests in, there are certain limitations to the data available on climate and nature, especially regarding supply chains. During our ownership, we support portfolio companies to become more mature on all climate and nature-related aspects, including identification, prioritization, management, and reporting.

All portfolio companies are required to report their GHG emissions and other sustainability-related information on an annual basis. The reported data is used to measure nature impacts based on Life Cycle Assessment (“LCAs”) in line with the European Commission’s Environmental Footprint (“EF”) method and use sector-based data through the ENCORE tool for a top-down assessment of the portfolio.

Summa has set Science-Based Targets (“SBTs”) for climate, including a commitment to align portfolio companies’ emissions reductions initiatives with the Science-Based Targets Initiative, ensuring that our investments contribute to global decarbonization efforts. Summa is still evaluating concrete nature-related targets, but the overall objective is to contribute to a positive development where nature, including biodiversity, ecosystems, and natural capital, is protected and thrives.

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  4. Investing in a circular and waste-free Europe

Investing in a circular and waste-free Europe

Stockholm, April 19th – A report published today by Summa Equity (“Summa”) identifies EUR 230bn in investment needs by 2040 for new physical assets and infrastructure alone to enable the transition to a circular European economy. Also, the report highlights several opportunities across multiple sectors for the EU circular economy to reach its true potential.

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The report, “Investing in a circular and waste-free Europe,” is a sector-defining body of work which closely examines the current state of play in Europe. It highlights areas in which the EU is doing poorly, such as material production and disposal, which generates 850 Mt of CO2e per year, equivalent to 22% of total EU GHG emissions. The report, launched in conjunction with the Harvard Business School event “A trillion-dollar opportunity hiding in plain sight – the Circular Revolution”, sets a clear path toward future prosperity.

One of the most important opportunities identified by the analysis is the need for a new asset base for the circular economy: equipment, processing plants, and supporting infrastructure. The analysis estimates the cumulative investment needed in physical assets to be EUR 230bn by 2040. Such investments can also generate attractive returns, the analysis finds, with the valuation of circular markets potentially exceeding EUR 1.5tn by 2040.

Progress is being made in several regards: the EU has set targets for waste reduction and recycling in key sectors, carbon prices are rising rapidly, and companies are embracing circularity as part of their climate and sustainability strategies. Central to the Summa thesis is the need for companies to lead change and be a force for good, by implementing ESG policies and future-proofing their operations, decarbonizing at speed, and proposing solutions to systemic issues.

The report finds that “an enormous recasting of European markets for materials, waste and physical products” is due by 2030. In turn, circular business models could generate about EUR 265bn revenue in 2030, representing 15% of the physical consumer goods market, and EUR 450bn by 2040. Add savings from materials efficiency, as well as a projected quadrupling of the recycling industry, and the total revenue generated by Europe’s circular economy could be EUR 820bn by 2040. Greenhouse gas emissions could be cut by 650 Mt CO2e – equivalent to the combined emissions of France and Spain, or 55% of the total emissions from the material system in a 2040 business-as-usual scenario.

Summa Equity Founder and Managing Partner Reynir Indahl said:

“Our research and work explore the Theory of Change for achieving a waste-free and circular economy in Europe, which represents an enormous opportunity – a chance to recast the EU economy to sharply reduce waste, reduce emissions, become more self-sufficient, and maximize the value of the materials we use. With this, we seek to inspire, provoke thought, and stimulate discussion on how to drive the circular transition. Together, we can now shape a future where waste is not a problem, but a valuable resource for a prosperous, sustainable, and resilient Europe.”

Summa Equity Partner Bertrand Camus said:

“The circular economy provides Europe with a remarkable opportunity – the chance to build a revitalized, future-proof, economy, which will enhance the continent’s ability to reduce emissions and usher in a new era of industrial prosperity. As evidenced by the research, investment is required, but such outlays come with significant upsides and opportunity. Time is of the essence, and we must move fast.”

*** END ***

About Summa Equity

Summa invests in companies that are solving global challenges and creating positive Environmental, Social, and Governance (ESG) outcomes for society.

Summa’s purpose is to co-create win-win for investors, portfolio companies, and society through aligning its vision and outcomes to the Sustainable Development Goals, ensuring a net-positive impact against ESG challenges, and the potential for long-term, sustainable outperformance.

Investments are focused on industries and companies that have tailwind from megatrends within three sustainability themes: Resource Efficiency, Changing Demographics, and Tech-Enabled Transformation. Across these themes, Summa’s portfolio companies are supporting a world in transition and showing that business can be part of the solution. Summa Equity has c. EUR 4 billion (c. SEK 40 billion) assets under management.

summaequity.com

For interviews or more information, please contact:

Hannah Gunvor Jacobsen, Partner and Head of IR at Summa Equity
+47 936 41 960 | hannah.jacobsen@summaequity.com

Are you interested in learning more?

Download the full report via the button below.

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  2. Summa Equity publishes Portfolio Report 2020

Summa Equity publishes Portfolio Report 2020

We are excited to release Summa’s fourth Annual Portfolio Report! Here, we wish to showcase Summa’s culture of constant improvement – we are continuously looking to enhance the way in which we analyze and communicate the link between financial performance and value creation impact. A key part of the Private Equity 4.0 approach is underpinned by building an understanding of key adverse impacts, which is as important to us as demonstrating the positive outcomes that are created.

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For this reporting cycle, we have in particular focused on aligning with the upcoming Sustainable Finance Disclosure Regulation (“SFDR”), structuring our monitoring to accommodate portfolio reporting on the Principal Adverse Impact indicators (PAIs).

We are also doing more to demonstrate how we work with governance in our portfolio, emphasizing the role of the Via Summa Compliance framework. The analysis of environmental impact is data driven, using actual company data and emissions factors based on scientific research.

This year we have gone digital so you can view key facts on the highlights page, read the full version online or download as PDF. You can also view the video below, where Alex and Hannah walk through some of the exciting updates to our reporting framework:

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  4. Summa Equity publishes Portfolio Report 2019

Summa Equity publishes Portfolio Report 2019

We are very excited to share Summa’s third Annual Portfolio Report. Our intention with the report and the process behind it is to build an understanding of how we are contributing to the SDGs, what the correlations are with the portfolio’s financial performance, what the negative impacts are and where we need to improve.

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This year, we have further aligned our reporting with the norms defined by the Impact Management Project (IMP). This is part of our effort to continuously improve the clarity and quality of our portfolio report. While the norms are integrated into our screening process for new investments, we have in the portfolio report leveraged the IMP framework more clearly to improve our external stakeholder communication. While the commentary cannot address all relevant aspects, we believe it provides valuable insight into how the companies affect a broader set of stakeholders.

Normative, our provider of sustainability analytics, has again helped us compile the data and assess negative externalities. Although recent times have provided us all with some challenges, we have made several improvements to our data gathering processes and some enhancements to the methodology. We have also engaged extensively with our portfolio companies over the last year to improve the way we quantitively measure positive impacts.

We hope that you will enjoy reading about all the exciting solutions that our portfolio companies’ heroes are providing and how they make a difference to our world!

Download Summa Equity Annual Portfolio Report here.

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  4. Summa Equity publishes Portfolio Report 2018

Summa Equity publishes Portfolio Report 2018

Summa Equity’s Portfolio Report 2018 summarizes the state of our business, our approach, portfolio metrics, investment themes and our investments.

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“Financial uncertainties have increased, creating a more challenging market for companies and investors. From this uncertainty, Summa Equity has realized the business opportunities in UN Sustainable Development Goals (SDGs). We are therefore excited to show how our companies are solving some of the world’s challenges, and the growth and value increase in doing so,” says Reynir Indahl, Managing Partner, Summa Equity.

The Portfolio Report 2018 builds on the framework presented in our Portfolio Report 2017, while providing further context to the metrics used by adding relevant sector benchmarks and including year-on-year changes where possible. In addition, we seek to provide further context to Via Summa and our thematic investments (Resource efficiency, changing demographics and tech-enabled businesses), while demonstrating our value creation approach through company case studies representing each of our themes.

Download Summa Equity Annual Portfolio Report here.

In 2019, we are continuing our journey of enhancing Via Summa and our efforts to make Summa an ecosystem of purpose drive companies that deliver profitable returns while solving the challenges our world is facing, where we as owners help accelerate this performance.

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Latest readings

News

Inspiring leadership for impact: Summa Equity’s CEO Learning Journey at Harvard Business School

Read more

Summa Equity owned myneva Group continues its growth journey with the acquisition of DM EDV

Read more

Measuring what matters: How impact accounting redefines sustainability measurement

Read more

Summa Equity completes EUR 800m Fortum Recycling & Waste acquisition, combining with NG Group: “We are creating the Nordic leader in the circular economy”

Read more

Summa Equity merges Sengenics into Standard BioTools to broaden its proteomics offering

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