We have integrated ESG (Environmental, Social, Governance) analysis into our investment decisions since inception of operations. We conduct independent research and have accumulated extensive knowledge in sustainability field and its role in asset management, while continuously improving and refining our tools, resources and expertise. The Alphinox sustainability team consists of certified sustainability analysts and specialists with more than 10 years of experience in assessing sustainability issues of public companies.

We have always believed that sustainability is an integral part of quality companies. Business transparency, robust sustainability risk management and credible management teams are key aspects of quality companies, and therefore imperative for all companies in which we invest.

Sustainability report for 2022 (in Latvian)

In 2022, sustainability issues seemingly disappeared from the foreground against the background of surrounding events, but it is still a very important part of our daily life, which is reflected both in the creation of sustainable securities portfolios and in public education in the field of financial literacy.

The path to a sustainable portfolio

By systematically integrating ESG analysis into our investment process, we ensure that portfolio companies and investment candidates meet our ESG standards. Instead of simply relying on third-party assessments, where the process can sometimes be opaque and the outcome controversial, the analysis is performed by our analysts and the research results are documented. Although we follow generally accepted materiality framework guidelines in the research process, we believe that every company is different and faces unique sustainability-related risks and opportunities.

We do not use a one-size-fits-all approach

Therefore, we do not use a one-size-fits-all approach in our ESG analyss, but focus on things that are really important for each specific company. Not only the company's industry, country and business model specifics are taken into account, but in each case analysts evaluate a particular company separately.

Integrated sustainability

Attention is paid not only to the impact of ESG factors on the company's financial indicators, but also to negative external factors - the company's impact on the environment and society. Although insufficient management of sustainability risks can significantly affect the company's finances, we believe that above all companies should try to conduct their business ethically, responsibly, and not pay attention only to those issues that can reduce their profits. We expect that sustainability is integrated into all business processes relevant to the company and is part of the business plan and overall strategy.