4. Argentum’s internal activities
Argentum produces a report on ESG in its own operations each year. This report is based on selected objectives from the UN Sustainable Development Goals and indicators from the UN Global Reporting Indicators (GRI).
4.1. Argentum and the UN Sustainable Development Goals
5. Gender equality | ||||
Sub-Goal | 5.5 | KPI | The proportion of women in the company overall, as well as in specialist roles and in management. | |
Objective | Ensure that women have complete and real participation and equal opportunities for leadership positions at all levels at which decisions are made, in politics, financial and public life. | Status 2021 | The percentage of women in the company is 37%. 16.7% women in specialist roles. 33% women in the management team. | |
8. Decent work and economic growth | ||||
Sub-Goal | 8.3 | KPI | The number of new investments in funds and the amounts invested in the funds | |
Objective | Promote a development-focused policy supporting productive activities, creating decent workplaces, entrepreneurship, creation and innovation and stimulating the formalisation of and growth in the number of very small, small and medium-sized businesses, including by providing access to financial services. | Status 2021 | 18 primary investments. NOK 2.2 billion invested. | |
12. Responsible consumption and production | ||||
Sub-Goal | 12.6 | KPI | The number of managers that have taken specific steps to develop their ESG policies/ESG procedures further | |
Objective | Stimulate companies, especially large and multinational companies, to adopt sustainable methods and integrate information about their sustainability in reporting procedures. | Status 2021 | 59 out of 97 managers (60.8%) had taken specific steps. | |
13. Climate action | ||||
Sub-Goal | The goal as a whole. | KPI | Developments in CO2 emissions for portfolio companies that report on this | |
Objective | Take steps to combat climate change and its impact. | Status 2021 | 91 companies reported on emissions. Scope 1: Average decrease of 9.7% (median increase 5%). Scope 2: Average increase of 25.5% | |
4.2. GRI indicators
The GRI comprises over 80 indicators for economic, social and environmental performance, with certain core indicators that must be reported on unless they are considered to be of limited importance to the company.
GRI is a set of general reporting indicators used by a number of industries, with many of the indicators being of particular relevance to larger companies. For example, Argentum does not have production activities or own buildings, but operates as an asset manager. The company has therefore decided to report on a selection of GRI indicators that are relevant to the company and its activities.
Below is an overview of the parameters Argentum reports on in connection with GRI.
| Indicator | 2021 | 2020 |
|---|---|---|
| Recycling (paper and IT) | 43% | 43% |
| Business travel, CO2 equivalents | 11.7 tonnes | 10.3 tonnes |
| Business travel, CO2 equivalents (per FTE) | 0.44 tonnes | 0.41 tonnes |
| Sickness absence | 1.77% | 0.45% |
| Percentage of women | 37.0% | 34.8% |
| Skills development (per employee) | 9.66 hours | 3.5 hours |
4.3. Environmental indicators
Argentum’s business operations involve travelling. The effects of the COVID-19 pandemic contributed to the company’s travel activities remaining low. In 2021, this resulted in 11.7 tonnes of CO2 equivalents, while the corresponding figure for 2020 was 10.3 tonnes of CO2 equivalents. This represents a small increase of 13.6% compared with the previous year. The increase also contributes to a small increase in emissions per employee, which have risen from 0.41 tonnes per FTE in 2020 to 0.44 tonnes per FTE in 2021.
Argentum is anxious not to travel any more than necessary to carry out the company’s activities and we make extensive use of the company’s video conferencing equipment for both internal and external meetings. Travel in 2021 was very limited through much of the year, and it is natural to assume that this will rise somewhat as it becomes easier to make business trips. However, it is possible that travel could decrease somewhat in the future, as many of the digital meeting solutions that were introduced in recent years are likely to remain in place when the pandemic is over. Argentum previously estimated that the emissions would be around 60 tonnes per year over time, but this may be reduced somewhat.
Argentum has an agreement with an external party to cover recycling of our discarded IT equipment, and we also require our suppliers to have environmental certification. Argentum has established environmental measures relating to paper recycling and 43% of paper waste was recycled in 2021. This is the same level as the previous year.
4.4. Social indicators
Argentum had 27 employees at the end of 2021, compared with 23 employees at the start of the year. The number of full-time equivalents in 2021 was 26.5, which is used in average calculations in this report unless stated otherwise. Sickness absence accounted for 1.77 per cent of total working hours in 2021, a slight decrease from 2020 when it amounted to 0.45 per cent.
Argentum strives for equality and the proportion of women in the company remained stable in 2021, ending at 37.0 per cent, compared to 34.8 per cent in 2020. In a small organisation such as Argentum, new hires and departures will have a substantial impact on these percentages. The proportion of women on the board has increased to 60 per cent and remains 33.3 per cent within the company’s management team. The proportion of women in the company’s investment departments was 16.7% at the end of the year.
Diversity and a good working environment are important for Argentum and the company is concerned that this should be reflected internally. This includes equal opportunities for all employees. Argentum’s business activities are within an industry that has traditionally been dominated by men. Argentum consciously uses both genders in the company’s promotional materials and in recruitment work directed at new employees and the best applicants will always be considered. The company has flexible arrangements that make it easier to combine career and private life. Argentum is constantly working to promote gender equality and to strengthen the work in this area. Argentum has signed the UN CEO Statement of Support for the Women’s Empowerment Principles to promote global gender equality work.
Skills development/training per employee amounted to an average of 9.66 hours in 2021, compared with 3.5 hours in 2020. The main reason for the increase is that many employees were on external courses for a certain time in 2021, which was not the case in 2020. Recruitment to the company will have an effect on the level of courses and skills development. Argentum will also continue to focus on developing the expertise of its employees.
4.5. Raising awareness and positioning
This report summarises Argentum’s work on ESG and sustainability and is published annually. The status of the work is also summarised in the company’s annual report. An annual meeting is held with the Ministry of Trade, Industry and Fisheries that is specifically related to ESG work. Argentum’s reports and guidelines are available via our digital library.
As a member of the UN Global Compact, Argentum reports on the work relating to ESG and sustainability. Argentum completed its ninth report in 2021 and this report is available via the Global Compact website. Argentum has followed the UN PRI principles for a number of years and signed them in 2021. Our first UN PRI report will be completed in 2023.
Argentum has been a member of Norsif (Norwegian Forum for Responsible and Sustainable Investment) for a number of years. Norsif is an independent association of asset owners and asset managers, service providers and industry associations with an interest in responsible and sustainable management. Argentum has been active in the association since it was established and is represented on the association’s events committee, for example. In 2021, we were responsible for two Norsif seminars at which we either participated ourselves or invited fund managers from the portfolio: On ESG in alternative investments (19 May) and the energy mix of the future and the speed of the green transition (23 November).
Argentum also aims to work closely with Norwegian and international investors to develop work on ESG in the portfolio. The company participated in Private Equity International and the UN PRI Responsible Investment Forum in 2021, both and attended several conferences and seminars related to ESG and sustainability in the course of the year. At the time of drawing up this report, Argentum has recently been the main sponsor of the Sustainable Finance & Reporting Summit, in April 2022 in Oslo, at which we put the spotlight on sustainable finance and sustainability reporting in the unlisted market. We also participated on the panel during the Warmer, Wilder, Wetter Climate Festival in Bergen in March 2022.
During the course of the year, we spoke a lot with students about ESG and sustainability. We have volunteered as a case business for NHH students on the “Sustainable Finance” programme and this involves being interviewed so that they can create a report with tips for improvement. We continued our focus on attracting more women to the financial sector in 2021, when we became the main sponsor of two NHH initiatives: SHE Innovates and Women’s Finance Day. Both of these initiatives took place in March 2022 and we showcased Argentum and the PE sector as good career paths for young women with an interest in finance.
We received media attention from two professional journals in 2021 for our ESG efforts and the trends we can see in the sustainability field: The Drawdown (October) and Real Deals (December).
Argentum has regular dialogue with investors, managers and other stakeholders in connection with the ESG work and has assisted with their work on developing their ESG processes and routines. Argentum will continue discussions with Norwegian and international investors in connection with ESG and sustainability in 2022.