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Sustainability

Sustainability as a Lens for Better Decisions and Lasting Value

EQT has an enduring conviction that sustainability creates value. Since our inception, sustainability has been central to how we invest in and future-proof assets, serving as a core part of our mission to be the most reputable investor and owner.

EQT is convinced that assets delivering against a clear sustainability strategy, built on materiality, can reduce regulatory and operational risks while creating conditions for long-term value creation.

EQT manages capital across a diverse, global portfolio of hundreds of active companies, has an extensive real estate portfolio spanning thousands of properties across multiple continents, and a secondaries platform providing equity and credit investment and liquidity solutions.

Our global platform allows us to share learnings across sectors and geographies, and accelerate value creation and decarbonization across a portfolio of significant size and breadth.

Investment Lifecycle

Integrating Sustainability Across the Investment Lifecycle

Sustainability is integrated throughout EQT’s investment lifecycle, from screening to exit. This includes identifying material risks and value-creation opportunities, integrating sustainability into decision-making, and supporting portfolio companies to drive long-term value.

In some investments, EQT funds may not have sole or shared economic control over a company, which can limit EQT's ability to directly influence sustainability outcomes. Where this is the case, EQT adapts its approach while continuing to pursue its sustainability ambitions.

Pre-Investment

Early in the investment process, EQT identifies material sustainability risks and value creation opportunities. EQT has established a negative screening that excludes direct investments in specific industries where sustainability considerations have been determined to pose potentially material adverse business issues that cannot adequately be managed within the parameters of the EQT funds' investment strategies.

Diligence & Underwriting

Structured sustainability assessments during due diligence identify material risks, regulatory exposure, and value creation levers with external advisors leveraged to provide independent expert assessment. Sustainability findings are embedded into the financial model and investment case, such as including decarbonization pathways, climate transition costs, potential regulatory compliance costs and identified sustainability value creation opportunities.

Investment Recommendation

Ahead of Investment Committee (IC) approval of investment recommendations, sustainability findings are consolidated into a refined and finalized case with materials included in the final IC documentation. This ensures the IC has visibility into material sustainability factors and alignment on post-closing priorities.

Ownership

During ownership, EQT works with portfolio companies to execute sustainability value creation plans. This may include strengthening governance structures, advancing decarbonization, improving health and safety performance and incorporating sustainability into products and services to drive value creation. For real estate assets, this can include deploying energy-efficiency measures and renewable energy, such as installing solar photovoltaics (PV).

Progress is typically monitored throughout the ownership period through regular board-level and management review meetings and active engagement with portfolio company management teams, to drive continuous improvement and adapt strategies as needed.

Exit Preparation

As part of exit preparation, EQT typically works to position sustainability performance within the company's market narrative. This can include demonstrating progress against key initiatives, ensuring readiness for market and regulatory expectations, and helping potential buyers understand how sustainability supports the company's long-term value and resilience.

Shared Knowledge.
Shared Progress.

Networks

EQT’s scale and geographic reach across Europe, North America, and Asia, combined with deep networks of operational and sector advisors, enable us to share learnings and access knowledge that drives long-term value creation. We leverage these advantages through strategic partnerships and knowledge-sharing initiatives designed to advance sustainability progress across our industry. See more information under Partnerships below.

EQT's commitment to sustainability governance is reflected in our inclusion in the Dow Jones Best-in-Class Indices, based on the S&P Global Corporate Sustainability Assessment. This recognition validates our integrated approach to investing and operating as a firm. See more information under Sustainability Benchmarks and Ratings.