High results when Infranode disclose figures on EU Taxonomy alignment

Infranode is pleased to disclose a high level of alignment to the EU Taxonomy for both our funds. Fund I delivers 73% alignment and Fund II 53%. With two diversified infrastructure funds, this result showcases our commitment to the climate change mitigation objective. The results are a product of our robust governance processes within sustainability, and our close dialogue with our portfolio companies.

Strong performance for a diversified portfolio

The new EU Taxonomy introduced by the EU is a classification system of economic activities with the purpose to establish a clear definition of what an environmentally sustainable activity is. At Infranode, our general ambition is to transfer financial means to activities and companies that promotes the green transition. We can now showcase results on that journey. For the financial year 2022 the documented taxonomy alignment based on revenue was a 73 % for Fund I and 53 % for Fund II.

The assessment of EU Taxonomy alignment was conducted for each portfolio company by independent industry experts together with legal and technical experts. The results are based on documented evidence for each company, ensuring a high integrity in the process.

Key takeaways from the taxonomy assessment

Julia Kosulko, Operations and Sustainability Manager, has lead the EU Taxonomy assessment at Infranode to verify that eligible business activities for all portfolio companies in both our funds have been assessed in accordance with the regulation. To introduce the results, Julia shares key insights from the process, and how the results can be used when managing two diversified infrastructure funds.

How can the EU Taxonomy shift investments in a more sustainable direction?

The high taxonomy alignment of two our funds are the proof that our investments are making a substantial contribution to the climate change mitigation objective, while not causing any harm to the other environmental objectives and at the same time safeguards human and labour rights. While offering valuable understanding of our existing portfolio, the insights from the assessment also guide us in future investment decisions on portfolio level. Offering a portfolio with a high EU Taxonomy alignment is a way for us to, together with our investors, support infrastructure that promotes the green transition.

How did Infranode approach the EU Taxonomy, considering it is a new regulation?

Any new regulation will have ambiguities once it is activated in the industry. Running a complex assessment in an evolving regulatory environment required the commitment of the Infranode asset management team and the dedication of the sustainability management teams at our portfolio companies. Our starting point was to minimise and address risks associated with regulatory uncertainty. We engaged a team of industry experts in sustainability, technology, and regulation to assess the business activities of our portfolio regarding the taxonomy criteria of climate change mitigation. The assessment was based on documentation provided by the portfolio companies. Forming a joint team between Infranode and experts working closely with the portfolio companies was the key to our effective process.

Read the full results for both funds in our report Bridging the Nordic gap, available here.