FSN Capital Environmental, Social and Governance report 2018 Building Resilient Companies
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FSN Capital Environmental, Social and Governance report 2018 Building Resilient Companies BUILDING RESILIENT COMPANIES
About FSN Capital
and the FSN Funds
Established in 1999, FSN Capital Partners («FSN Capital») is a Northern
European private equity advisor. We advise the FSN Capital Funds («FSN
Funds»), which currently consist of four active Funds with a total commit-
ted capital of €2 billion. The Funds focus on making control investments in
companies operating in the Nordic and DACH regions with enterprise values
between €50 million and €300 million.
The FSN Funds, with the support of FSN Capital, offer portfolio companies a
clear value proposition: The potential to transform into more competitive, in-
ternational and resilient entities during FSN Fund´s period of ownership. The
FSN Funds are supported by a broad range of leading international institutions
that share a long-term perspective. The investors provide long-term capital that
allows time to implement the transformation initiatives and create sustainable,
lasting and value-added change within the portfolio companies. We are com-
mitted to taking a responsible approach when interacting with the portfolio
companies, advisors, investors, local communities and the environment. FSN
Capital seeks to act with the highest level of integrity.
At the core of how we operate is the FSN Capital Ethos;
«We are decent people making a decent return in a decent way».
FSN FUNDS HAVE INCREASED 2 OUT OF 3 NEW EXECUTIVE
# OF EMPLOYEES BY 33% IN 2018 ADVISORS IN 2018 WERE FEMALE
MORE THAN €470 MILLION
1 OUT OF 3 NEW INVESTMENT
RETURNED TO THE INVESTORS
TEAM MEMBERS IN 2018 WERE FEMALE
FROM FSN FUNDS IN 2018
AVERAGE REVENUE INCREASE OF AVERAGE EBITDA INCREASE OF 3%
14% ACROSS PORTFOLIO COMPANIES IN ACROSS PORTFOLIO COMPANIES IN
FSN FUNDS IN 2018 FSN FUNDS IN 2018
BUILDING RESILIENT COMPANIES 3
«We are decent people making
a decent return in a decent way»
By investing with purpose, FSN Funds have
realized in excess of 3x ROI and above 30% IRR,
by building sustainable companies.
As such, FSN Funds are contributing to the
welfare of 11 million workers and pensioners and
100,000 researchers and students.
In this report we will take you through
Who we are, What we do and How we do it.
Table of Content
About FSN Capital and the FSN Funds 4
Letter from our Founder 7
Letter from our Chairman 10
1. FSN CAPITAL – WHO WE ARE 12
2. FSN CAPITAL – WHAT WE DO 22
3. FSN CAPITAL – HOW WE DO IT 34
4. STATUS – ESG DEVELOPMENTS IN PORTFOLIO COMPANIES 39
Saferoad 40 Fibo 56
Chip 42 Fitness World 58
Sneakersnstuff 44 EET Europarts 60
Mørenot 46 Kjell & Company 62
Gram 48 Vita 64
Holmbergs 50 Skamol 66
Active Brands 52 Aura Light 68
Roplan 54
5. FSN CAPITAL – «DECENT PEOPLE
MAKING A DECENT RETURN IN A DECENT WAY»
74
Appendix I – FSN CAPITAL’S VALUES 78
Appendix II – CODE OF CONDUCT FOR FSN CAPITAL 79
Appendix III – FSN CAPITALS’ CODE OF CONDUCT - SHORT VERSION 84
Appendix IV – THE TEN PRINCIPLES OF THE UN GLOBAL COMPACT 85
Appendix V – FSN CAPITAL’S WHISTLEBLOWER POLICY 86
Appendix IV – FSN CAPITAL’S LIST OF STANDARD POLICIES 89
Our ultimate clients
European Norwegian Swedish
Steel workers Municipality workers Pensioners
UK Asian
Pensioners students
US Medical South-East Asian
researchers citizens
US Public Australian
Employees Nurses
Australian
US Students
Pensioners
US High-Tech Middle Eastern
workers citizens
Letter from our Founder
At FSN Capital we are privileged to serve 11 mil-
lion workers, pensioners and students by mak-
ing a meaningful contribution to their pensions,
through generating superior returns on their sav-
ings. At the end of 2018, our realized returns stand
at 3.1x ROI and 34% IRR.
Moreover, we generate these returns by building Photo: Erik Burås
stronger, more resilient companies that enhance
financial performance, create employment in good
and healthy working environments and make a democratic rights, access to food, healthcare and
meaningful contribution to the local communities education, and in which the general population
they touch, as well as society at large. have labour and human rights protection. This of
course, is only achievable in a healthy biosphere,
The core of this achievement is good governance without which there is no life. These are all the
aimed at driving our companies to even better fi- goals of UN SDGs (Figure 1).
nancial performance, as well as towards the UN
Sustainability Goals, (UN SDGs). Driving our portfolio companies towards these
goals is therefore very much part of securing an
Navigating towards the UN SDGs are in many environment in which we can continue to deliver
ways self-serving. As a Firm, we depend on a pre- outstanding returns for decades to come.
dictable and healthy investment environment, and
our portfolio companies depend on a strong and Our efforts to address ESG factors and work to-
healthy economy to thrive. Such investment en- wards UN SDGs has become an integral part of
vironments and economic climates grow out of our governance approach to secure improved fi-
transparent societies, predicated on equal oppor- nancial performance and mitigate risk. As such,
tunities for all, be it through freedom of speech, we last year introduced a new and improved stand-
BUILDING RESILIENT COMPANIES 7
Figure 1: The interconnected nature of the UN SDGs
Source: Azote Images for Stockholm Resilience Centre
8 FSN CAPITAL ESG REPORT
«In 2078, when I turn 75 years old, I will
probably spend the day with my children. Maybe they
will ask me about you. About why you did not do
anything while there was still time?»
GRETA THUNBERG, 15 YEARS OLD
ard framework across the portfolio companies I would like to conclude with a poignant reminder
and their supply chains. As you will see from this of how we need to listen carefully to the next gen-
report, this is helping us systemize and focus the eration. «In 2078, when I turn 75 years old, I will
continuous improvement necessary to reach the probably spend the day with my children. Maybe
relevant UN SDGs. they will ask me about you. About why you did
not do anything while there was still time?»
A common framework for all portfolio companies
is also facilitating cooperation among them. For Addressing Greta’s concern, we will in 2019 in-
example, last fall, Kjell & Company and Active corporate a standard climate module in our ESG
Brands, who both source out of China, conducted Framework inspired by the Taskforce on Cli-
a joint anti-corruption training session in Shang- mate-related Financial Disclosures (TCFD).
hai. This year we will raise the bar on the Environ-
ment. We hope you will enjoy reading this year’s ESG
Report, learning more about how we continue to
Watch on youtube:
contribute to the welfare of our ultimate clients,
Greta Thunberg, 15 years old. Addressing UN Climate Change by generating superior returns, while contributing
Conference in Katowice, Poland, December 2018.
https://www.youtube.com/watch?v=VFkQSGyeCWg to a sustainable world with a healthy investment
climate.
Frode Strand-Nielsen
Managing Partner
FSN Capital Partners
BUILDING RESILIENT COMPANIES 9
Letter from our Chairman
EVEN BIGGER CHALLENGES AHEAD OF US
When reading this report, I hope you share my
impression that FSN Capital is making good pro-
gress in the way we publish metrics related to the
Environmental, Social and Governance standards
that we are applying. Our first ESG report in 2014
was intentional, showing our dedication to take
the ESG dimensions of our business seriously. The
current report is more concrete and serves even One area where we definitively have a way to go
better as a tool for keeping us accountable to all is the understanding and adoption of climate risk.
our stakeholders. There is so much evidence, as last illustrated by
the United Nations Intergovernmental Panel on
Why are the ESG factors so important to FSN Climate Change (IPCC) report from October last
Capital, our portfolio companies and for our in- year, that climate change represents an existential
vestors? The simple answer is that controlling those threat to our lives on the planet. With continued
factors is about prudent management of risk. Our rise in global temperature, we may reach a tipping
time horizon for investments is very long because point where changes in the climate systems get ir-
we also need to consider the time horizon of the reversible. Impacts on climate changes today are
future owners of the business. The long investment more severe than expected one and two decades
horizon means that the extra financial risks become ago.
crucial. Among those are how portfolio companies
interact with societies, their customers, their em- Even with radical measures to curb carbon emis-
ployees and the environment. Short-term gains in sions and a higher likelihood of keeping global
some areas can become long-term liabilities. warming well below 2°C, as was the agreed ob-
We think that investment management and risk jective of the Paris Agreement signed in 2016, we
management are two sides of the same coin. It will continue to see severe worsening in the phys-
doesn’t make much sense to assess the actual re- ical environment. This alone will challenge most
turn delivered or expected for the future without a businesses across locations and sectors. The other
simultaneous assessment of the risk involved. Con- key risk factor, the transitional risk, also has a po-
trolling risk means higher consistency in returns. tentially large impact for most businesses. This in-
cludes the risk of rapid policy changes, like a fast
Even with a more concrete and better ESG report escalation to realistic carbon emission taxes, and
than our former ones we are not fully satisfied. As abrupt changes in consumer and employee pref-
in the past – and in line with our mantra “posi- erences and behavior. Lastly, technological risk –
tive dissatisfaction” – we will continuously work to like breakthrough of clean energy production and
improve the quality of our work on ESG and our application – may imply fundamental changes to
reporting. businesses.
10 FSN CAPITAL ESG REPORTAs climate risk represent an existential threat to been available, and they are now increasingly de-
our civilization, we are also witnessing in paral- manding this. Governments are also raising the bar
lel that the rise of populism and nationalism are on transparency and our portfolio companies will
challenging the political order and social stability naturally be affected. We are presenting the key el-
of many liberal democracies. Climate changes are ements in our portfolio in this report in Chapter 4.
already causing immigration flows. Some measures
taken to curb carbon emissions, like petrol taxes in Disclosure of information will from 2019 not only
France, contributes to social upheaval. While mit- include established measures, as the carbon foot-
igating climate changes demand global, over-na- print, but also how companies work at the board
tional solutions and the ability to find common and top management level to understand and deal
ground across national borders, the trends towards with climate risk. Companies will be required to de-
populism goes in the opposite direction. velop various scenarios for climate change, one of
them must be a scenario where strong policy meas-
This illustrates the complexity of facing the climate ures and technological progress ensures that the Par-
changes. There are no simple solutions. As climate is Accord objective on global warming is met.
change can be seen as the worst market failure ever,
a key element of the solution is to price the exter- The figure below illustrates how climate change
nal effects. Carbon emission taxes where the rev- may impact revenues, bottom line and balance
enue is delivered back to the population on a per sheets of companies. It categorizes the various el-
capita basis will have a positive effect on income ements companies should have in mind. But we
distribution and potentially build support for cli- should not lose sight of the right-side of the fig-
mate actions. But much more change is needed. ure – a scenario of successfully dealing with glob-
In one way or another all businesses around the al warming that also include enormous business
globe will be impacted. opportunities. In the low carbon economy, there
is huge demand for many types of businesses. At
Awareness of climate changes has pushed govern- FSN Capital we are building competence to evalu-
ments as well as investors to enhance the focus on ate possible opportunities as well as increasing our
how companies are adapting. To grasp the risk re- awareness of not investing in sectors and compa-
lated to every company, investors need more gran- nies that will face headwind when climate actions
Categories of required disclosures
ular information
Climate-related than whatand
risks, opportunities hasfinancial
historically
impact are stepped up.
Transition risks Opportunities
Policy and legal Resource efficiency
Knut N. Kjær
Technology Energy source
Chairman
Risks Opportunities
Market Products/services
FSN Capital Partners
Reputation Markets
Strategic planning and risk management Resilience
Physical risks
Acute
Chronic
Financial impact
Revenues Assets & liabilities
Income statement Cash flow statement Balance sheet
Expenditures Capital & financing
Source: TFDC 2017 report on information requirement, a milestone in the global efforts to
Recommandations of the Task Force on Climate-related Financial Disclosure, June 2017 !1
come up with more clarity on climate related risks for all type of businesses.1.
FSN Capital – Who we are
We believe that culture is the most important We believe in setting the tone from the top.
ingredient in driving the ESG agenda. During a two-week onboarding program, all new
hires will get individual sessions with our Manag-
To have culture you need to have values and ing Partner and Chairman, focusing specifically
values are merely codified behaviour. As such, on our values, ethos and our responsibility to
behaviour is what we are looking for. society at large. The onboarding program also in-
cludes specific sessions on Code of Conduct, ESG
We at FSN Capital do not make decent peo- and internal controls. Spending time discussing
ple - that credit goes to mothers and fathers. In the benefits of responsible investment sends a
recruiting new team members, we do however strong signal to the new hire about the impor-
go to great lengths to understand the values and tance of ESG to our organisation. In essence, this
the moral fabric of our candidates, in addition to is about providing a solid start and a tool kit to
their leadership and investment talent. We need enable team members to surpass our expectations.
to make sure that their values echo FSN Capital’s It also emphasises that if we operate responsibly
values. In addition to interviews and detailed and implement sustainable practices, we mitigate
conversations, we conduct thorough background risk and drive higher returns for our investors.
checks run by third party service providers on all
new hires.
12 FSN CAPITAL ESG REPORTTHE FSN CAPITAL ETHOS integrated, if there is a strong cultural fit
FSN Capital operates with a clear ethos with the FSN Capital team in terms of our
that is encapsulated in one sentence: ethos and values.
Decent return we define as an internal
“We are decent people rate of return which substantially out-
making a decent return performs that which our investors could
achieve by investing in the relevant small/
in a decent way”. midcap listed shares index.
Generating this return in a decent way
At FSN Capital, our ethos is expected to we achieve by implementing the FSN
be at the core of how we approach deci- Governance Framework in all portfolio
sion-making every day. The Partners of the companies and by constantly encouraging
firm deliberately promote a culture that our individual team members to challenge
encourages this ethos. decisions and behaviour by asking the
question: “Is this in line with our ethos?”
By decent people we mean people of char-
acter and integrity. New team members The ethos is further reinforced through the
can only be successfully on-boarded and FSN Capital Values (Appendix I).
ETHICAL STANDARDS »» Have contributed to systematic denial of basic
We strive to deliver trend shifts through trans- human rights
forming portfolio companies into better and »» Demonstrate a pattern of non-compliance with
more sustainable companies. We believe in build- environmental regulations
ing resilient companies that can withstand the test »» Have an unacceptably high greenhouse gas
of time. footprint and fail to take economically sensible
steps to reduce these emissions
That said, we have clear ethical standards and »» Show a pattern of engaging in child labour or
exclusion criteria that always apply, regardless of forced labour
their impact on potential returns. These standards »» Produce weapons that, through their normal
are part of safeguarding our integrity and respon- use, may violate fundamental humanitarian
sibility in the way we operate. The FSN Funds principles (e.g. anti-personnel land mines,
shall not invest in companies that: production of cluster munitions, production of
nuclear arms)
»» Are directly related to the following industries:
Adult entertainment, tobacco, gambling and
alcohol.
BUILDING RESILIENT COMPANIES 13INTEGRATION OF ESG PRINCIPLES INTO
THE INVESTMENT PROCESS
FSN Capital has been a signatory of the UN
PRI (United Nations Principles for Responsible
Investment) since 2012.
In 2005, our Chairman was among those invited THE UN PRINCIPLES FOR
by the UN Secretary at that time, Kofi Annan, to RESPONSIBLE INVESTMENT (PRI)
draft the UN Principles for Responsible Invest-
ments (UN PRI). The end result was a set of 1
principles that naturally placed ESG factors into We will incorporate ESG issues into
the investment process, recognizing that ensur- investment analysis and decision-making
ing integrity is among the key success factors for processes.
long-term investors. 2
We will be active owners and incorporate
Compliance with UN PRI’s six principles is a ESG issues into our ownership policies
natural part of an investment strategy to safe- and practices.
guard and enhance the returns of the FSN Funds’
portfolio investments. 3
We will seek appropriate disclosure
In line with the UN PRI, we have incorporated on ESG issues by the entities in which
ESG issues into every step of our decision-making we invest.
processes.
4
We will promote acceptance and
implementation of the Principles within
the investment industry.
5
We will work together to enhance
our effectiveness in implementing
the Principles..
6
We will each report on our activities
and progress.
14 FSN CAPITAL ESG REPORT«The support from FSN Capital in matters relating
to ESG and business ethics is highly appreciated. It is a
pleasure to work with a private equity fund possessing
a strong moral and ethical compass.»
CFO FITNESS WORLD GROUP,
NIELS MEIDAHL
BUILDING RESILIENT COMPANIES 15UN SUSTAINABLE DEVELOPMENT GOALS UN SDGs that are currently especially relevant
We recognise that the private sector plays an across the portfolio. As illustrated below, the
integral part in solving the most urgent global jurisdictions in which FSN Capital operates are
challenges as best described by the UN Sustain- already far advanced in their ESG efforts. Never-
able Development Goals (UN SDGs). We will theless, the Private Equity industry has an impor-
ensure that we will do our utmost to help achieve tant role in supporting change in scale and pace
these broader objectives of society. as each country continues its journey towards the
UN SDGs. Our goal is to be at the forefront of
In order to succeed over the long-term, it is that change.
important that we secure a good and predictable
investment environment. This is dependent on THE UN SDG INDEX
a strong, resilient economy. To achieve this, we # COUNTRY SCORE
need healthy societies and this in turn is depend-
1 Sweden 85.0
ent on a sustainable biosphere. Working towards
2 Denmark 84.6
the UN’s SDGs is therefore also key for ensuring
3 Finland 83.0
good returns for our investors.
4 Germany 82.3
5 France 81.2
We have continued to map which of the UN
6 Norway 81.2
SDGs are relevant for each of our portfolio com-
7 Switzerland 80.1
panies and are monitoring their progress towards
these goals. FSN Capital identified six of the 17 8 Slovenia 80.0
9 Austria 80.0
10 Iceland 79.7
Source: SDG index and Dashboards Report 2018
16 FSN CAPITAL ESG REPORTFSN Capital has identified 6 of the SDGs that are most relevant across the portfolio
Zero Hunger
Ensure healthy lives and
promote well-being for
all at all ages
Promote inclusive and sustainable
economic growth, employment
and decent work for all
Build resilient infrastructure,
promote inclusive and sustain-
able industrialization and foster
innovation
Make cities and human settle-
ments inclusive, safe resilient and
sustainable
Ensure sustainable
consumption and
production patternsDIVERSITY
In an increasingly complex world, having teams We are very committed to improving our gender
with complementary skill sets and backgrounds is diversity. In 2019, our goal is that at least 50%
vital for success. Research shows that companies of all new hires in the FSN investment team will
with a more diverse workforce perform better fi- be women. In addition, 50% of all new Portfolio
nancially. The Private Equity industry is male-dom- company board members and new FSN Executive
inated. FSN Capital has continued to take action Advisors should be women.
to improve the balance and have set specific goals
to achieve this. Some of the measures taken to
date include setting clear targets for improvement,
unconscious bias training for the Partners, co-op-
eration with #HunSpanderer (#ShesGotThis) and
implementing the parental leave rights and obliga-
tions of our employees.
18 FSN CAPITAL ESG REPORTFSN Capital Partners 2014 2015 2016 2017 2018
Employees (FTEs) 28 30 32 39 48
Percentage women versus men 25 % 27 % 28 % 28 % 33 %
Absenteeism 1 % 1 % 1 % 3 % 1 %
Employee Satisfaction NPS 87 % 92 % 92 % 79 % 46 %
«There is so much to be proud of in 2018, yet we had the poorest 360 review
results since the inception of the survey. This is something I and the partner-group
is taking extremely seriously. This positive dissatisfaction can be a great source
of inspiration and energy. But, we must take care not to let this drive us over the
top, to a point where the positive becomes a negative. In 2019, let's make sure we
celebrate our victories and achieve a better work / life balance.»
FRODE STRAND -NIELSEN
BUILDING RESILIENT COMPANIES 19DN («Dagens Næringsliv» - Today’s Business), July 16th, 2018
Believing that more women is not good - It’s a combination of the fact that wom-
for business is as silly as dismissing glob- en are more difficult to find and that you
al warming, says leading finance profes- need to communicate somewhat differently
sional Morten Welo. to get them interested in private equity,
Written by Kari Vartdal Riise and that there are simply less women than
men to choose from. Fewer women choose
Managing Partner of the private equity firm finance degrees, and just a small portion of
FSN Capital, Frode Strand-Nielsen, was them apply for positions in private eq-
shocked when he realized how bad the uity, says Morten Welo, COO and Part-
gender balance was both in his firm and the ner at FSN Capital.
industry. The private equity firm has 32 partners
So far, FSN Capital has had more success in and investment advisors. Of these, four are
achieving gender balance in the portfo- women.
lio companies than internally. - There is a lot of academic research and
20 FSN CAPITAL ESG REPORTmany reports that show that diversity male candidates. Regarding private equity,
increases profitability. You can choose not she says:
to believe it, of course, just as you can - This is an extremely male-dominated in-
choose not to believe in global warming. dustry. They do not attract women, and few
We at FSN Capital strongly believe that women want to work in these cultures.
diversity improves profitability so we are - Women do not want a workplace
working actively to increase both measures, with only men. They become skeptical and
says Welo, who is responsible for recruiting ask themselves what they stand to gain
at FSN Capital. there, says Stenberg
Higher returns Working with people
The consulting firm McKinsey has found a Morten Welo at FSN Capital believes the
clear correlation between financial perfor- private equity advisor would be an attrac-
mance and women in management: tive work place for more women if they did
a better job communicating that working
»» According to McKinsey, the return on in private equity is largely about working
equity is on average 47 per cent higher with people.
for companies with women in manage- - Most processes in the business world are
ment than in companies without to a certain extent about spreadsheets and
»» The operating margin is on average 55 analyses, but after that, relationship skills
per cent higher in companies with wom- are the most important part. It’s about
en in management than in companies communicating well, reading situations and
without people, and building trust.
This is important when FSN Capital meet
Shy away from male-dominant companies with founders and owners of family busi-
Private equity funds such as FSN Capi- nesses they wish to invest in.
tal buy companies to develop and restruc- Since last summer, three out of six new
ture them, before selling them after owning employees are women. Six out of 12 board
them for some years. members recruited last year were women.
- Our biggest challenge is that we are - We must leave no stone unturned to
in the private equity industry. A lot of find more women, and we often have
people don’t know about the industry, and to send the recruiting agencies out the door
we have not been able to communicate to for another round, says Welo.
women what it’s really like to work here,
says Morten Welo, Partner at FSN Capital.
FSN Capital has, among other initiatives,
https://www.dn.no/arbeidsliv/delt-arbeidsliv/likestilling/fsn-cap-
hired head hunter Anna Stenberg and ital/-det-er-ikke-sa-mange-kvinner-som-onsker-a-jobbe-i-disse-
Women Executive Search to find more fe- kulturene/2-1-360863
BUILDING RESILIENT COMPANIES 212.
FSN Capital – What we do
ESG
framework
Develop
Build
and implement
internal ESG
standard
knowledge FSN policies
Capital's ESG
building
Award best blocks Dedicated
ESG internal ESG
performers team
Promote ESG
globally
KEY ESG EFFORTS IN 2018 each portfolio company by mapping, prioritising
2018 has also been a busy year for FSN Funds’ and monitoring key ESG aspects for each portfo-
portfolio companies in terms of ESG efforts. lio company. Furthermore, the standard approach
requires the portfolio companies to set both short
As mentioned in the 2017 report, the Norwegian and long-term goals as well as identify relevant
law firm Selmer conducted a high-level review of KPIs to measure progress. The reporting format
key ESG risks for all portfolio companies during also fulfils the requirements of the EU directive
2017. All new portfolio companies have been re- on non-financial reporting.
viewed as a part of the due diligence or onboard-
ing process. The review included benchmarking As part of the process, a market review, com-
of existing compliance programmes against best prising a sectoral and peer review also provided
practices in the relevant sector. valuable insights into which ESG themes are most
relevant and what level of performance is expect-
ESG FRAMEWORK ed. Selecting only key risks and opportunities,
Our approach to ESG is commercially based and i.e. those material both to stakeholders and the
the ESG strategy is an integral part of the value cre- Company, allows each Company to focus on ESG
ation strategy of each portfolio company. To ensure topics material to value creation. Setting long-
that our ESG efforts are effective, we will predom- term goals and breaking them down into short-
inantly focus on the most relevant ESG risks and term actions to regularly monitor progress is a
opportunities for a given portfolio company. perfect fit with the FSN Execution Framework*.
So, building on last year’s review and to further The Chairman, CEO and FSN Capital point per-
align the portfolio companies’ ESG strategy with son for each portfolio company all participate in
the UN SDGs, we continue to apply our ESG each stage of the process outlined below to ensure
framework. The framework is a standard ap- accountability and that the right tone is set from
proach to build individualized ESG strategy for the top.
* FSN Execution Framework is FSN Capital's framework for setting and executing on strategic goals. According to the FEF methodology, one
should not have more than 3-5 strategic goals, allowing for both management and Board of Directors to stay focused and committed.ESG FRAMEWORK
1 Action: Map ESG impacts through the value chain.
Purpose: Create awareness and accountability beyond own business operations
RAW MATERIAL SUPPLY PRODUCTION OF GARMENTS MANAGEMENT AND MARKETING STORES AND END-USE
2 Action: Rate identified ESG aspects, based on importance to both stakeholders and to the Company
Purpose: Prioritise based on stakeholders’ expectations, market trends and business critical areas.
IMPORTANCE TO STAKEHOLDERS
IMPORTANCE TO COMPANY
3 Action: Define 3-5 key ESG goals, including short term actions and long-term strategy.
Purpose: Continuous improvement towards the global ESG goals, one step at the time.
BUILDING RESILIENT COMPANIES 23BUILDING INTERNAL ESG KNOWLEDGE and toolset to work in close collaboration with
The FSN Governance Framework is founded on the management team and Board of Directors to
our long track record of driving the ESG agenda continuously improve ESG efforts. Our standard
in all of our portfolio companies, who are ulti- approach is to identify best practices and stake-
mately responsible for maintaining ESG stand- holder expectations within the relevant industry.
ards. Through our historically strong focus on We then use this input to find the most up to
ESG we have built up a great deal of knowledge date tools necessary to effect change together with
and experience which we have standardised and the management team.
apply systematically to all new investments. By
this, FSN Capital is able to substantially mitigate At FSN Capital, one of our most important
risk, although this cannot be fully eliminated. assets is our people. We invest significantly in the
education of our employees through the annual
In order for deal teams in their capacity as board seminars with Harvard Professors, the Global PE
members to set the right tone from the top in Alliance Academy, FSN Executive Framework
all portfolio companies, we continue to build seminar and internal best practice sharing. In
our internal knowledge. In doing so, we aim to addition, we run 1-1 coaching and training pro-
give our deal teams the required competence grammes as exemplified in the case study below:
COACHING FOR PERFORMANCE
In Private Equity, one is expected to have impact. The program focuses on conduct-
technical and analytical skills, as well as the ing business like it is a marathon, and less
ability to build trust and engagement with of a sprint, and to use passion and com-
LPs and management teams in current mitment to achieve the best results.
and potential portfolio companies. To
ensure that their professionals have the The team has expressed a considerable
right skillset, FSN Capital started offering increase in self-awareness and ability to
performance coaching in 2016. prioritise with confidence when making
tough decisions since the introduction of
The coaching program involves a delib- the program.
erate methodology to help teams build
rapport, challenge, provide support and Tim Farish, Leadership coach and advisor,
advice, develop confidence and increase Quickminds
24 FSN CAPITAL ESG REPORTFSN CAPITAL HAS A STRONG COMMITMENT TO ITS ESG STRATEGY
In PwC’s view, FSN Capital has a strong PwC has had the opportunity to work
commitment to its ESG strategy. ESG closely with FSN Capital and several of
issues are always part of its pre-acquisition its portfolio companies on a broad specter
Due Diligence efforts, and FSN Capi- of its ESG agenda, in particular within
tal’s focus on ESG in their onboarding anti-corruption and trade-sanctions com-
of newly acquired portfolio companies is pliance.
strong. Expectations are clearly expressed
and defined. In detail, PwC has for example assisted in
designing company specific ESG policies,
FSN Capital has a holistic approach based on the ESG risk profile defined after
when working with ESG issues which is risk workshops with company manage-
best practice (cf. figure below). We share ment, and translated these policies into
FSN Capital’s strong belief that roles and all relevant languages for the relevant
responsibilities should be defined within company’s operations. We have not only
the company, preventive systems imple- performed ESG training to employees, but
mented based on a performed ESG risk also the company’s top management and
assessment, controls enforced, breach of Board of Directors. We have assisted with
code of conduct sanctioned, mistakes drafting training material in e-learning
corrected, and learning points noted in the programs, designed third party screening
continuous improvement work. With this procedures, performed actual trade-sanc-
approach, the endless endeavor to uphold tions screening on specific customers and
and improve ESG standards is owned and vendors, and advised FSN Capital on ESG
driven forward by management in the matters in transactions. All in close coop-
portfolio companies. eration with the FSN Capital ESG team.
Pål Lønseth, Head of Compliance and Foren-
sic Services, PwC
Roles and Preventive
responsibilities systems
Follow-ups Control and
and reactions exposure
BUILDING RESILIENT COMPANIES 25Internal ESG knowledge is built through our agement of potential targets reaching out to FSN
onboarding process for new hires. In addition, we Capital as a new owner.
conduct training sessions on specific ESG topics
(both internal and external providers), facilitate RFKennedy Compass holds annual conferences
best-practice sessions and discuss ESG issues as designed to help decision makers at public
part of our monthly operating reviews. and corporate pension funds, endowments, foun-
dations, sovereign wealth funds, and family
We have established an internal ESG team with offices fulfil their fiduciary duties and meet the
responsibility for designing the FSN Governance challenges of investing today. Each conference
Framework, building internal knowledge and gathers approximately 150 institutional investors
supporting deal teams in their ESG work. In ad- and asset managers who collectively oversee more
dition to develop standard policies, the ESG team than $7 trillion of assets to discuss the evolving
has also developed a logical, repeatable framework role of long-term asset ownership and ways to de-
for raising ESG standards across the portfolio. liver superior risk-adjusted returns while consid-
Given our positive dissatisfaction, we continue to ering human and labour rights, corporate govern-
update our standard methods and approach based ance, and the environment as crucial elements of
on learnings we make. investment management.
In 2018, fraud was discovered in Gram Equip- FSN Capital has been invited to The RFK Com-
ment, a portfolio company acquired by Fund V in pass conference in each of the last three years,
2018. FSN Capital filed an insurance claim in June due to our ESG focus. During the conference we
2018 and received payment of the full insurance engage in the discussions and share our views and
limit of €50 million under a warranty and indem- learnings from our own ESG journey.
nity liability insurance policy in March 2019.
Managing Partner Frode Strand-Nielsen and
FSN CAPITAL’S ACTIVE PROMOTION OF COO Morten Welo participated in several panel
ESG IN VARIOUS FORUMS ACROSS THE discussions last year at a number of Superreturn
GLOBE conferences to share FSN Capital’s view on ESG,
UN PRI Principle 4 sets out that we should and how they have implemented ESG principles
«promote acceptance and implementation of the across all processes.
principles within the investment industry», which
is in line with our focus on continuous improve- Several FSN Capital employees have been pro-
ment and positive dissatisfaction. Rather than moting the importance of ESG at student events
safeguarding our ESG knowledge as a competitive at the Norwegian School of Economics. FSN
advantage, we actively share and promote our Capital is also actively trying to increase number
approach in order to improve the ESG effort of of women entering into finance. We participated
the private equity industry as a whole. at numerous events during 2018 including Wom-
en’s Finance Day fair at Stockholm School of
Participation in the public debate has made FSN Economics (SSE) and mentoring in the Women’s
Capital known for its values and ESG focus Finance Network.
which increasingly has led to founders and man-
26 FSN CAPITAL ESG REPORTPhoto: Johan Olsson
FSN Capital also co-operates and supports MAK es on how to achieve a better gender balance in
(makorg.no), a Norwegian organization focusing 2018.
on intercultural competence as a competitive
advantage. FSN Capital is also a part of the affiliated net-
work to Invest Europe Responsible Investment
Like in 2017, FSN Capital had several partic- Roundtable, a permanent forum dedicated to
ipants at #shesgotthis round table diversity responsible investment practices and environ-
breakfast in 2018. Our Managing Partner was mental, social and governance issues in Europe’s
one of the discussion facilitators. Inspired by private equity industry. Several meetings were
#shesgotthis, we made made our very own dis- conducted throughout 2018, where FSN Capital
cussion cards inspired by #shesgotthis to facilitate participated.
discussions regarding unconscious bias for our
Annual General Meeting in 2018. Further, FSN Capital held presentations at
smaller seminars including Investinor annual
Rebecca Svensøy, General Counsel, represented CEO Day, Breakfast Seminar with Initiative for
FSN Capital when AP6 invited representatives Ethical Trade and Group Lawyer days at Haavind
from Nordic PE funds to share their experienc- in Oslo.
«Frode and FSN Capital have been key champions and driving forces to support
the work on diversity and intercultural competence of MAK since its inception.
Frode, and FSN Capital, has been supporting MAK with mentoring, participation
in events, providing financial support and access to the right people, all of
which has been key components of our success. »
JAVAD MUSHTAQ – CEO, MAK*
*makorg.no is a Norwegian organization focusing on intercultural
competence as a competitive advantage.FSN CAPITAL’S ANNUAL ESG AWARD their suppliers, launched their packaging initiative
As part of setting the tone from the top we have with the intention to make sure that raw materials
introduced an annual ESG award among the FSN used in the package manufacturing process come
Capital portfolio companies. from responsibly managed forests, and thus pro-
viding environmental, social and economic ben-
In 2016 and 2017, Netcompany and Green Land- efits. A pilot was successfully launched in 2018,
scaping were the proud winners of the FSN Capital where a USB cable was made from 70% recycled
ESG award as the best performing company in the plastic that was gathered from waste generated
portfolio with respect to ESG. from plastic injection during mass production.
The package was made from 100% recycled paper
The criteria for selecting the 2018 winner remains and printed with soy ink.
unchanged:
Within plastic bags Kjell & Co charges SEK 2
»» Awareness and ESG efforts in daily operations per bag, of which 1 SEK per bag is donated to
»» Value creation to society at large the Swedish Child Cancer Foundation. They also
»» Clarity in ESG policies track plastic bags on a monthly basis as part of
»» Focus on continuous improvement and pro- their overall ESG strategy. The goal for 2019 is to
gress reduce plastic bag usage by 40%.
»» Tone from the top (i.e. management and board
engagement) Employee and consumer welfare are at the heart
»» Portfolio companies’ holistic approach to of everything Kjell & Co does. Kjell & Co’s
sustainability employees are regarded by the firm as their most
»» Adherence to FSN Capital’s values valuable asset. Kjell & Co makes significant in-
vestments in training and education, and contin-
WINNER OF FSN CAPITAL’S 2018 ESG uously focus on improving NPS in each indi-
AWARD vidual department across the firm and complete
bi-annual employee surveys. As an example, the
NPS for the warehouse workers increased from
-15% in H1 2016 to +6 in H2 2018 as a result of
their efforts.
A vast majority of the products offered at Kjell With a customer NPS of 66%, which is exceeding
& Company (Kjell & Co) are used to prolong relevant peers by 27%, Kjell & Co has succeeded
life and extend the use of capital goods. As such, in building a customer club of 1.8 million mem-
Kjell & Co aspires to a more sustainable society bers since 2017. The customer club allows Kjell
by reducing consumption of capital goods and by & Co to provide customers with relevant offers
reducing electronic waste. and information regarding purchased products.
By having access to customers via email and SMS,
Kjell & Co’s work with ESG is an integrated part Kjell & Co discontinued their bi-annual release
of daily operations, and they continuously inves- of a product catalogue, with an annual environ-
tigate possibilities for reducing the environmental mental impact estimated of 276 tonn of paper
footprint. During 2018, Kjell & Co, alongside annually.
28 FSN CAPITAL ESG REPORTINTERVIEW WITH ANDREAS RYLANDER, COO IN KJELL & CO
«We are extremely happy to receive the When questioned with potential obstacles
FSN Capital Annual ESG Award as ESG with respect to ESG efforts, Mr. Rylander
is relevant for all our employees and in all replies; «It is always a challenge to get the
parts of our operations», Mr. Rylander says consumer to care about something else
with delight when he is being recognized than price. Environmentally friendly solu-
on behalf of Kjell & Co. He continues; tions are not always the cheapest, and our
«Although ESG has a focus in our entire experience is that it is challenging to get
organization, the level of focus ESG is consumers 40+ to pay extra. Thus, we con-
getting depends on what role each employ- sider it as our task to improve our com-
ee has in the organization. I would say that munications and add additional nuances
ESG is highest on the agenda for our col- and positive effects to such purchases, ie
leagues who are working on our produc- by focusing on increased longevity of the
tion facilities in China. This is also prob- products».
ably where we have the biggest impact. In
2018, our CEO and I went to China and Kjell & Co is continuously looking at ways
together with our local staff we held our to enlarge their ESG efforts and offerings.
very own ESG seminar to clarify Kjell & Recently, Kjell & Co started a pilot project
Co’s ESG requirements and expectations replacing screens and fixing mobile phones
to 160 of our biggest suppliers. The event as an effort to increase the mobile lifetime
was very well received». and thus reduce electronic waste. The
ambition is to roll out this service to all
Kjell & Co believes that ESG is good stores. Smart homes are also getting more
business. Focus on reducing packaging attention as they contribute to reduced
and air freight have increased financial electricity use by regulation heating and
performance. According to Mr. Rylander, lightning in the most efficient way.
customers have become ever more focused
on ESG during recent years and almost
expect businesses to focus on ESG. «Going
forward, I expect you have no other choice
than to select ESG friendly solutions,
unless you will become irrelevant to most
consumers. You need to have a continuous
focus on minimizing your footprint», Mr.
Rylander adds.
BUILDING RESILIENT COMPANIES 29WHAT WE DID IN 2018
DELIVERING ON OUR COMMITMENTS
The table below shows the development objec-
tives we had for the last year and what we did to »» Monitored diversity KPIs monthly for
deliver on these, as well as the new objectives for FSN Capital and the Board of Directors
the coming year. of FSN Funds’ portfolio companies. 67%
of all Executive Advisors and 42% of all
board members hired during 2018 were
women.
»» We ESG onboarded 5 new portfolio com-
panies: ensured adoption of standard ESG
policies, plan for implementation and
development of individual ESG strategy
»» Together with PwC, we have created an
anti-corruption training program which
has been tested in one portfolio company
with great success.
»» We have exchanged contact details be-
WHAT WE SAID IN 2017 tween portfolio companies where relevant
to support knowledge sharing.
»» Implement a standard electronic anti-cor- »» We have taken a proactive role in commu-
ruption training program nicating our ESG efforts to society at large
»» Increase awareness and training in relation by through our participation in seminars
to cyber security and articles in the media
»» Facilitate a best practice sharing workshop »» We continued to strive for full imple-
on supply chain management across our mentation of Employee Satisfaction and
portfolio companies Customer Satisfaction for all portfolio
»» Continue to take a proactive role in com- companies
municating our ESG effort to the society
at large
»» Continue to improve diversity KPIs across
FSN Capital and FSN Funds’ portfolio
companies
»» Continue to work towards identifying
and contributing to relevant UN SDGs in
portfolio companies and FSN Capital
30 FSN CAPITAL ESG REPORTWHAT WE WILL DO IN 2019
»» Incorporate a new Climate Risk module in the standard ESG Framework - inspired by
the Taskforce on Climate-related Financial Disclosures (TCFD). The Climate module
will be used in DD processes and in the ongoing portfolio company ESG efforts
»» Roll out the established electronic anti-corruption training program to FSN Funds’
portfolio companies
»» Create an open platform for all portfolio companies to share information and ques-
tions about their ESG processes in a secure manner
»» Implement the portfolio companies’ ESG KPIs into FSN Capital’s financial reporting
system to more closely monitor and track progress on initiatives
»» Evaluate converting the yearly ESG report onto a digital platform
»» Continue to actively participate in network events and ESG seminars to communicate
and share our ESG efforts
»» Update portfolio company Board Instructions with clear ESG responsibility
»» Continue the Diversity journey within FSN Capital and FSN Funds’ portfolio compa-
nies by standardizing yearly unconscious bias training for all executives and develop a
more comprehensive Mentor Program
«It’s all about building a strong ESG compliance culture
within each FSN Capital portfolio company»
ERIK NELSON – PARTNER AT FSN CAPITAL
BUILDING RESILIENT COMPANIES 31SNEAKERSNSTUFF
Sneakersnstuff (SNS) cares about society Christmas Holidays in 2018. Gently used
at large and is committed to contribute to sneakers and clothes were collected from
UN SDG 12, responsible consumption SNS’ customers and donated to home-
and production. In addition to providing less people in the local cities as well as to
sustainable solutions as a part of its prod- people in Syria. To encourage donations,
uct offering, all SNS stores collaborated discount vouchers were given to donators
with local charity organizations for the to use for their next SNS purchase.
32 FSN CAPITAL ESG REPORTKARI TRAA COMPETING ON SOCIAL PURPOSE
Kari Traa, the fastest growing female sports Through campaigns such as «strongerT-
apparel brand in Europe and the domi- WOgether», «CELEBRATE YOURSELF»
nant brand in the Active Brands group, and «Run the Show», Kari Traa continued
has since its inception been: «For girls. By to celebrate women and empowering them
girls. Exclusively!». Through its vision of through their communication and brand
inspiring girls to be happier, healthier and messages in 2018.
stronger, Kari Traa is competing on social
purpose. Kari Traa has received enormous response
on different social media platforms from
Kari Traa wants to encourage women to consumers with some campaigns reaching
celebrate themselves and inspire them to more than 3 million views. In Norway,
engage in physical activity – not to lose 95% of women between 18-55 years
weight or to look a certain way to satisfy a know of the Kari Traa brand. Thus, it is
boyfriend’s needs, but to increase self-es- reasonable to believe that the efforts have
teem and mental health. By focusing both a positive impact on health and life quality
its product design and marketing messages for many women that have been exposed
around inspiring girls to be optimistic and to the various campaigns.
confident, and living a balanced life, Kari
Traa reinforces this vision.
BUILDING RESILIENT COMPANIES 333.
FSN Capital – How we do it
Sourcing Investment decision Ownership period
- Consider ESG impact - Select ESG KPIs - Identify, Prioritise, Monitor & Measure
Due Diligence Onboarding Exit
- Identify ESG risk - Setting the tone - Secure resilient businesses
Integrating ESG assessments throughout the and owners and their set of values are fundamental
entire investment phase is part of our efforts to to moving forward on a potential deal.
take a broad and long-term view when assessing
investment risks and opportunities. In general, External experts are always engaged as part of the
FSN Capital’s approach to ESG is materiality ESG due diligence (DD) process. The scope of
based with intention to identify, prioritise, mon- the DD will depend on relevant jurisdictions,
itor and measure key commercial, reputational industry, company specifics and general risk expo-
and operational risks and opportunities. The aim sure, but always include anti-corruption DD and
is efficient use of resources by focusing on areas of integrity DD of management.
impact. Through this we have consistency in all
ESG efforts throughout the ownership, to ensure Highlights of the key findings from the DD
predictability for portfolio companies and FSN process are included as an important part of the
Capital’s employees. formal investment papers. During investment
decision meetings, relevant ESG topics are pre-
INTEGRATION IN THE PRE-INVESTMENT sented and challenged by the Investment Com-
PHASE mittee, investment team and Executive Advisors.
When sourcing new opportunities, ESG matters Through the ESG DD process, deal teams will
are always considered. Clearly defined exclusion also have identified key ESG topics for the Com-
criteria together with FSN Capital’s ethos and val- pany to focus on going forwards. To the extent
ues, guide deal teams as to which deals not to pur- relevant, investment materials will also include
sue, and to which deals that will fit into the FSN plans for the improvement of any of the identified
Fund portfolio. In addition to the above, placing ESG issues.
our trust in the management, Board of Directors
34 FSN CAPITAL ESG REPORTESG RISKS INCLUDED IN FSN CAPITAL´S RISK FRAMEWORK
FSN CAPITAL RISK CATEGORIES
MACRO
OPERATIONAL
ENVIRONMENTAL
Cyclicality Management risk Toxic emissions
FX Integration risk Harmful industrial waste
Commodity Internal / External Deforestation
INDUSTRIAL
FINANCIAL
SOCIAL
Political Liquidity Labour conditions
Competitiveness Leverage Forced / Child labour
Substitution Covenants Harm to health and safety
COMMERCIAL
EXIT
GOVERNANCE
Operating leverage Multiple sustainability Bribery / Fraud
Concentration Marketability Political interference
Visibility Dependency on trend Criminal convictions
shift Regulatory relations
WEATHER
ACTIVE OWNERSHIP
Majority shareholder
Ultimate control
BUILDING RESILIENT COMPANIES 35ONBOARDING SAFEROAD - INTERVIEW WITH JAN SINDRE EGSETH,
GROUP COUNSEL, SAFEROAD GROUP
Saferoad was acquired by FSN Fund V in the most useful he replied quickly; «The
September 2018. Saferoad is a Norwegian short version of Code of Conduct (CoC).
based market leading provider of road It is easy to share with the entire Company
safety and road infrastructure products and – across both levels and locations». Further
solutions in Europe. Saferoad has opera- he adds that the short version CoC has
tions in ~20 EMEA countries with +2,700 been translated to all relevant languages,
employees, +80 business units and 28 put up on the wall in the production facili-
production sites. As such, the onboarding ties and included in all employee contracts.
of Saferoad was one of the most compre- It has been very well received among the
hensive onboardings ever for FSN Capital. employees.
We met with Jan Sindre Egseth, Group
Counsel at Saferoad Grup, to get his view In Mr. Egseth’s experience it is always a
on the overall onboarding experience and challenge to ensure complete alignment re-
the FSN Governance Framework. garding ESG goals and ambitions through-
out the entire organization. Although,
«FSN has a comprehensive onboarding he believes that this can be somewhat
program with a need to focus on continu- solved by finding the right KPIs; «Identi-
ous improvement in order not to overload fying relevant ESG KPIs has proven to be
the organization. With the support from somewhat tricky as we operate in many
PwC, who also completed the ESG DD, jurisdiction and industries. Thus, we need
we believe that we developed a thought to find KPIs which can be incorporated
through ESG improvement plan which into other KPIs, which in turn are driving
was aligned with the Company and FSN’s desired behavior and making ESG become
expectations right from the start», Mr. an integrated part of operations.»
Egseth explains. Since Saferoad was listed
on Oslo Stock Exchange when it was
acquired, the Company had many process-
es and policies already in place. However,
some policies needed an update while
others were replaced with FSN Capital’s
standards, such as the Whistleblower
policy.
Saferoad CEO, Espen Asheim, and General Counsel,
When questioned which of the FSN Capi- Jan Sindre Egseth, inspecting the Polish version of
tal’s policies or processes Mr. Egseth found the COC Short Form at the Rydzina factory
36 FSN CAPITAL ESG REPORTOWNERSHIP PERIOD of Conduct, Whistleblower Policy and minimum
FSN Capital has developed a standard on- requirements on internal controls (see Appendix
boarding program for new investments which VI for full list of standard policies).
is tailored for each company with assistance
from the internal ESG team. The purpose of the Either during the onboarding phase or as part of
onboarding program is to provide management the strategy work, the portfolio company goes
with a full overview of what it means to become through the process of identifying business-crit-
a FSN Fund portfolio company and set the tone ical ESG aspects, i.e. material to value creation.
from the top right from the start. In addition to By conducting a value chain analysis and mate-
the FSN Governance Framework, the onboarding riality assessment, based on the expectations of
program incorporates the FSN Execution Frame- the shareholders and the Company, the portfolio
work, FSN Capital’s reporting requirements and company should define three to five key ESG
overview of available FSN Capital’s resources and priorities to focus on. Performance on these pri-
upcoming best-practice seminars. The govern- orities are monitored and continuously assessed,
ance policies are always adopted at the first board based on short and long-term goals developed by
meeting for all new investments. the portfolio companies.
The FSN Governance Framework includes As a part of the onboarding program, FSN Capi-
standard policies and plans for implementation. tal’s Finance and ESG team, either jointly or sepa-
Individual portfolio companies’ implementation rately, has a meeting with the portfolio company’s
plans are tailor made, based on DD learnings. auditor to go through the auditor heatmap, also
Standard policies will, however, always include called annual review of internal control. The audi-
FSN Capital’s Code of Conduct (Appendix II), tor heatmap requires the auditor to report on key
which is based on the UN Global Compact and controls and internal control improvement areas
the OECD guidelines for Corporate Governance. to the Board in a structured way. Also, by requir-
The code provides our team members and port- ing the Board to report in a certain way makes it
folio companies with clear instructions on how to easier for deal teams and other Board members to
operate and behave to secure compliance within digest the auditor’s feedback.
the areas of human rights, labour rights, corrup-
tion, environment and active ownership. During the ownership period there is a con-
tinuous focus on ESG, kicking off every Board
Whenever we start to work with a new portfo- meeting with ESG as the first agenda point.
lio company or management team, we initiate Management is required to report on status of
a process to implement the Code of Conduct implementation and clear path towards achieving
which starts with the Board and management ESG goals which is an integral part of the overall
group, but eventually involves the whole organi- strategy for each company. FSN Funds are always
sation. Through this process, we firmly establish represented on the Board of the portfolio com-
what FSN Capital deems to be desirable be- panies. Expectations are explicitly defined and
haviour and what is unacceptable behaviour. In communicated to portfolio companies, Chairman
addition, standard policies always include a short and CEO.
version Code of Conduct, Supply Chain Code
BUILDING RESILIENT COMPANIES 37You can also read
