At Livonia Partners, we are dedicated to being a catalyst for the ESG journey within our portfolio companies and the broader private equity industry in the region. In spring this year, we enhanced our sustainability strategy and processes. We are now launching a roll-out of our ESG strategy across portfolio companies.

A notable addition to our sustainability strategy is the focus on four core sustainability areas that will guide our investment decisions and collaborations with portfolio companies. We decided to emphasize four ESG topics based on the United Nations Sustainable Development Goals (SDGs):

- climate action;

- responsible consumption and production;

- decent work and economic growth; and

- gender equality.

Additionally, Livonia Partners is committed to investing the equivalent of a minimum of 10% of Fund II value in projects that have a positive environmental impact.

Our sustainability strategy entails a dual approach. Firstly, we seek out companies whose products and services align with the sustainable development of our focus areas. Secondly, we actively engage with companies in our portfolio, facilitating internal investments to enhance their environmental and social responsibility practices.

Since the launch of Fund II, Livonia Partners have invested in Bestair Group and Stebby, actively supporting the green transition and employee well-being, respectively. In May this year, we successfully completed our latest investment in Bagfactory, furthering the promotion of sustainable alternatives to single-use plastics.

Our 2022 ESG report provides detailed insights into our plans to actualize our goals, along with the following key aspects:

- Our focus is on identifying investments that directly contribute to ESG impact.

- How our updated sustainability strategy facilitates better sustainability outcomes.

- The progress made by our portfolio companies in terms of ESG in 2022.

While we take pride in the progress made thus far, we acknowledge that much work still needs to be done. Livonia Partners remains committed to continually enhancing our ESG practices and embedding sustainability as a fundamental element of our investment strategy.