Glentra is a sector specialist focused on energy transition investments. We invest in critical infrastructure, which must be resilient to all types of change (whether it be macroeconomic, technological, or climate change, among others) and deliver benefits to society and industries for +30 years.
We recognize that the redesign of the entire energy ecosystem and the speed necessary to reduce carbon emissions as outlined in the Paris Agreement provide attractive investment opportunities, while also imposing risks to portfolio companies including transitional risks and sustainability risks.
We see the energy transition and sustainability as drivers of innovation and competitiveness. We believe sustainable investments and ESG risk management create and protect value in the same way as for other enterprise opportunities/risks. This is primarily achieved through selecting and structuring desirable investments and being an active owner engaging with portfolio companies to pursue business opportunities and manage risks to optimize the risk-return profile.
We believe that only attractive financial returns ensure allocation of risk capital to investment strategies and companies/assets – and that this equally applies for investments in energy transition opportunities. In this context, our primary objective is to generate attractive risk-adjusted returns from investments in infrastructure companies and assets that contribute to and accelerate the energy transition and decarbonization of societies and industries.
To achieve this, we select and invest in future proof and resilient businesses and engage with management to pursue value creation through growth via roll-out of cost competitive, reliable, and decarbonizing products/solutions high in-demand, cost reductions via improved resource efficiency, and risk management (including via lowering sustainability and ESG risks). Each and all of these contribute to optimizing the investment risk-return profile, while also contributing to its sustainability profile.
By concentrating our investment strategy on energy transition and decarbonization, we target businesses where the majority of revenue is directly or indirectly derived from decarbonization and carbon emissions avoidance or in companies/assets where CO2e emissions from their activities can be significantly reduced during our ownership period. This approach ensures that sustainable investments and sustainability and ESG risk management enhance value creation and protection - in the same way as for other enterprise opportunities/risks.
Through this strategy, we seek to unlock higher financial value by improving cash flows via higher margins and growth (e.g., by increasing operational efficiency and strengthening market positioning to capture the rising demand for energy) and lowering risk premiums (via strategic resilience and risk management). Inherently, this also creates a positive impact on both climate and society by driving decarbonization, economic growth, and job creation.
Glentra’s Sustainable Investment Policy forms the arch document within Glentra’s broader sustainability and ESG framework. It intends to guide us throughout the investment process (from screening to divestment) by outlining key sustainability and ESG principles, standards, and frameworks. Additionally, the Policy forms the foundation of Glentra’s sustainability and ESG objectives, commitments, and risk management.
The current version of our Sustainable Investment Policy is available here:
Glentra is committed to aligning with the Paris Agreement, working towards limiting global temperature rise to below 2°C, with efforts to stay within 1.5°C. This commitment is embedded in our sustainability objective of CO2e emissions avoidance and/or reductions through investments in energy transition infrastructure. As an investment manager, we will observe and be guided by internationally recognized standards and norms. This applies also to our portfolio companies as we typically take controlling stakes and pursue active ownership with appropriate governance and information rights and the ability to influence strategy and organization.
Our guiding international standards include:
Our Exclusion List is another element of our Sustainable Investment Policy, ensuring that we avoid investments in sectors or activities that conflict with our sustainability commitments. The current version of our Exclusion List is available here:
To further formalize our commitment to the integration of material sustainability and ESG factors throughout the investment process, Glentra is a signatory to the UN Principles for Responsible Investment. This underscores our commitment to incorporating ESG considerations into investment decisions and fostering sustainable, long-term value creation.
Glentra intends to invest in and capitalize companies for growth and energy transition infrastructure deployment at scale, and there is a direct link from our investment strategy to positive contributions to the UN global sustainable objectives. Through our investments we contribute to the targets set in the United Nations Agenda for Sustainable Development, specifically we contribute to the Sustainable Development Goal 7 (Affordable and Clean Energy) and the Sustainable Development Goal 9 (Industry, Innovation, and Infrastructure).
Glentra integrates sustainability and ESG considerations and risks in all investment proposals for investment decision alongside other opportunities for financial value creation and risk mitigation /management with the aim to optimize and protect investment returns.
In doing so, we assess the degree to which the business is future proof and resilient, its ability to grow via roll-out of cost competitive, reliable, and decarbonizing products/solutions, and improve resource efficiency, manage risks, and operate according to the principles and standards outlined (including regarding sustainability and ESG). We also assess Glentra’s ability to pursue active ownership and influence.
We include in investment proposals and ongoing monitoring an assessment of the potential negative impact on the financial return of the material sustainability and ESG risks (alongside other risks). If a potential or existing investment is assessed to have significant negative sustainability or ESG impact without a clear and realistic plan to mitigate and/or manage such potential risks, we refrain from making such investment or consider taking appropriate measures to divest such investment.
As manager of alternative investment funds (“AIFs”), including Glentra Fund I, Glentra is subject to the EU’s regulatory framework for sustainable finance, including the Sustainable Finance Disclosure Regulation (“SFDR”) and the EU Taxonomy Regulation. These regulations enhance transparency and accountability by requiring fund managers to assess, integrate, and disclose sustainability risks and impacts.
As a fund manager, Glentra is committed to meeting its transparency obligations. This includes, amongst other things, classifying funds under SFDR categories such as Article 6, Article 8, or Article 9, reporting on sustainability and ESG commitments, particularly when promoting objectives such as climate change mitigation, disclosing how sustainability risks and Principal Adverse Impacts (“PAIs”) are integrated into the investment process.
More information about how Glentra integrates sustainability and ESG risks throughout the investment lifecycle (from pre-investment and during the holding period) is available in the SFDR disclosure below.
Glentra Fund I is categorized as an Article 8 fund under the SFDR and it targets a minimum 50% allocation to Sustainable Investments (as defined under the SFDR). These investments must meet the following criteria:
Additionally, Glentra Fund I’s investments are typically in EU Taxonomy-eligible sectors and activities contributing to the EU Taxonomy’s environmental objective of “climate change mitigation”.
Below you can find our Sustainability-related Disclosures for each AIF managed by Glentra as required under the SFDR:
As part of our SFDR periodic disclosure, we publish an annual PAI-statement providing information about the consideration of principal adverse impacts of investment decisions on sustainability factors on a manager level, covering the period of 1 January until 31 December of each reporting year.
Our remuneration policy underpins our strategy, functional performance, and operations for the payment of variable remuneration to employees. Employees' remuneration consists of base salaries and variable remuneration. We have defined risk indicators to assess risk conduct in relation to sustainability risks, including in connection with investment decision-making. These risk indicators can be quantitative or qualitative, and reflect the relevant sustainability risk aspects of an employee's performance. The risk indicators are set so that the structure of variable remuneration does not encourage excessive risk-taking with respect to direct or indirect sustainability risks.
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