Helmet Capital Ltd Ab plans and executes financing and ownership arrangements for Finnish SMEs with the aim of strengthening the company’s investment capacity, growth, and development prospects. In addition to this, Helmet actively participates in ownership guidance, providing support to the company and entrepreneurs.
Helmet Capital Ltd Ab – Principles of Sustainable Investing
The starting point for sustainable investing is to act in accordance with the interests of stakeholders both during the preparation of the investment and throughout the ownership period. These interests include both increasing the company’s value and promoting sustainability factors (issues related to the environment, social responsibility, and good governance) that are not in conflict with each other and create synergy.
The investments are selected among companies that already adhere to sustainable development in their business operations and systematically promote the achievement of these goals, or have the prerequisites to develop to this level.
Helmet strives to comply with the UN Principles for Responsible Investment (UN PRI) and considers environmental and social responsibility, and good governance factors as part of its investment activities. Helmet Capital Ltd Ab is also a full member of the Finnish Venture Capital Association (FVCA) and adheres to its rules and recommendations in its operations.
The board of Helmet approves the principles of responsible investing that guide its investment activities and continuously monitors their implementation.
Considering sustainability risks in our investments
The starting point for responsible investing at Helmet is to incorporate sustainability into the business operations of the investment target and further develop it through active ownership and influence.
For Finnish SMEs, reducing their environmental impact and developing social responsibility and good governance are typically fundamental values and integral to their operations. Helmet screens potential investments based on sustainability criteria, excluding companies whose nature of business or values do not consider sustainability risks in their operations.
The investments are selected among companies that have the potential to develop into responsibly managed entities during the ownership period, whose products and/or services are produced sustainably, or who offer them in a more sustainable manner than other industry operators. Helmet’s investments primarily include companies in the industrial, trade, and service sectors.
Helmet does not invest in companies that lack the prerequisites for acting responsibly, deliberately violate the basic principles of sustainable development, or are unwilling to embrace and develop responsible practices as part of their investment strategy.
At the time of investment, Helmet implements a growth strategy that has already been developed in collaboration with the target company’s management. They initiate board work, support the development of the executive team, and enhance reporting in a way that ensures transparency and enables the company’s progress and milestones to be transparently monitored and linked to the management and the entire staff’s compensation and incentive systems.
After these initial stages, good governance is integrated as a natural part of the company’s ongoing development. Helmet aims to follow the guidelines of the Finnish Securities Market Association (Corporate Governance Code 2020, 19.9.2019) to the extent applicable to unlisted SMEs.
Active ownership and influence
Helmet actively engages in the operations of its portfolio companies through ownership. This provides an opportunity to promote responsible practices that strengthen the business and identify risk factors through direct dialogue and support with company management. Examples of such engagement include board and executive team collaboration, strategic business planning, measurement of key indicators (such as energy consumption, waste volume, and CO2 emissions), and improvement of the work environment (ergonomics, lighting, air quality, wellbeing programs, and values).
The current situation of the target company and its development prospects are assessed as part of the pre-investment analysis phase, including due diligence and the preparation of a business plan. The process involves a team that will be responsible for the investment, its ownership guidance, and board work throughout the investment lifecycle. During the investment phase, the responsibility for managing sustainability risks is transferred to the investment company’s board of directors and CEO.
In the regular monitoring of investment companies, various indicators such as sick leaves, accident statistics, customer and employee satisfaction measurements are used to assess the development of social responsibility within the company.
Helmet requires its portfolio companies to provide open and regular reporting on their activities, highlighting sustainability factors that are relevant to the business and socially important. During the ownership period, sustainability factors and their risks are taken into account in collaboration with the company’s management and board. If necessary, a development plan is created, and its progress is brought to the attention of the board. The fundamental principle is to engage the target company’s staff in responsible actions as part of their normal responsibilities and work environment.
Helmet ensures compliance with up-to-date legislation and reports on the portfolio companies to investors on a quarterly basis.