HAVN Capital Fund II is classified as an Article 9 fund under the EU Sustainable Finance Disclosure Regulation (SFDR). Article 9 funds represent the highest level of sustainability ambition under the SFDR framework, with sustainable investment as their stated objective. The fund targets investments in companies that make a measurable contribution to climate change mitigation through the energy transition, focusing on electrification, energy efficiency, and renewable energy services across Northern and Western Europe.
The fund's sustainable investment objective is to accelerate the European energy transition by investing in service, software, and technology companies that directly enable decarbonisation. Each portfolio company is assessed against its contribution to avoided greenhouse gas emissions and alignment with the EU Taxonomy for sustainable activities. The fund targets net-zero portfolio emissions by 2040, ahead of the Paris Agreement timeline, through active engagement with management teams and measurable sustainability KPIs integrated into every investment case.
HAVN Capital considers the principal adverse impacts (PAI) of its investment decisions on sustainability factors. This includes monitoring greenhouse gas emissions (Scope 1, 2, and material Scope 3), carbon footprint, energy consumption, and exposure to fossil fuels across all portfolio companies. We utilise MoreScope and other specialised tools to track avoided emissions and ensure that our investments are contributing positively to climate outcomes. PAI indicators are reviewed quarterly and reported annually in line with SFDR Level 2 requirements.
ESG considerations are fully integrated into the fund's investment strategy at every stage. During screening and due diligence, potential investments are evaluated against sustainability criteria including energy transition relevance, avoided emissions potential, and governance quality. Post-investment, ESG action plans are developed for each portfolio company, with specific targets for emissions reduction, energy efficiency improvements, and social impact. Board-level ESG reporting is conducted quarterly, and an annual sustainability report is published for all limited partners. The fund does not invest in fossil fuel extraction, thermal coal, or activities that are incompatible with the energy transition.