The ESG Status of Swedish Private Equity 2023 (Swedish Private Equity & Venture Capital Association (SVCA))

Summary

• Mean FTE employment growth among SVCA member portfolio companies reached 21% in 2022, up from 9% in FY 2020.p.9
• The proportion of women on portfolio company boards of directors climbed to 23% in 2022 from 19% in FY 2020.p.5
• Women represented 28% of management team members across surveyed private equity portfolio companies in 2022.p.9
• Official anti-corruption policies were implemented by 83% of Swedish private equity portfolio companies in 2022.p.9
• While women occupy 43% of junior positions in Swedish PE/VC, representation drops to 8% at the senior level.p.17
• In SVCA member governance bodies where investment decisions are made, women constitute 12% and men make up 88%.p.42
• Data was collected from 14 SVCA members covering a total of 139 portfolio companies headquartered in Sweden.p.8

Key insights

1. Proper ESG management enables PE/VC firms to access sustainable finance tools and enhances portfolio company valuation.p.6
2. Calculating and reporting scope 3 greenhouse gas emissions remains a major operational challenge across private equity value chains.p.7
3. Nordic private equity investors increasingly view sustainability as a driver of long-term returns rather than a financial trade-off.p.15
4. Materiality assessments are being systematically adopted by PE/VC firms to identify critical ESG risks and strategic opportunities.p.16
5. Board engagement and onboarding frameworks serve as primary governance channels for majority owners to drive sustainability agendas.p.24
6. Private equity portfolio companies recorded a mean employment growth rate of 21% in 2022, outperforming publicly listed firms.p.34
7. Swedish private equity portfolio companies achieved higher anti-corruption policy adoption rates than Nasdaq OMX Stockholm listed firms.p.43