FSG Fund II – 2024 SFDR Disclosure Summary

The report provides a detailed disclosure about FSG Fund II, focusing on its alignment with environmental and social characteristics under Article 8 of the Sustainable Finance Disclosure Regulation (SFDR).

Key Contents

Purpose and Objectives:

• The fund aims to promote environmental and social benefits by investing in companies addressing unmet medical needs and supporting the United Nations Sustainable Development Goals (SDGs), particularly:
  • Good Health & Well-Being (SDG 3)
  • Gender Equality (SDG 5)
  • Responsible Consumption & Production (SDG 12)
  • Climate Action (SDG 13)

Investment Strategy:

• Focus on life sciences and health tech, with additional allocation to technology sectors.
• Excludes investments in industries such as fossil fuels, tobacco, alcohol, weapons, gambling, and other sectors with significant sustainability challenges.

Performance Indicators:

• No ESG incidents reported across the portfolio in 2024.
• Codes of Conduct in place at all five portfolio companies.
• Employee surveys implemented at four of five holdings (OssDsign, Promimic, BrightBid, Din Psykolog).
• Carbon footprint initiatives reported at OssDsign, Saga Dx, and BrightBid.

Portfolio Highlights (2024):

• Saga Dx (45.5% of assets, USA) – expanded workforce and extended carbon-footprint initiatives to group level.
• OssDsign (28.7%, Sweden) – smaller workforce but continued governance structures and climate measures.
• Din Psykolog (10.4%, Sweden) – baseline year for ESG monitoring.
• Promimic (9.7%, Sweden) – Code of Conduct in place, no climate initiatives yet.
• BrightBid (5.7%, Sweden, AdTech) – classified as “Other,” but safeguards in place, including sustainable commuting policies and digitalisation of processes.

Sustainability Achievements:

• 94.3% of investments aligned with the fund’s environmental and social characteristics.
• 0% classified as sustainable under the EU Taxonomy (same as 2023).
• Baseline ESG indicators established for three new portfolio companies (Promimic, BrightBid, Din Psykolog).

Limitations and Alignment:

• No investments classified as sustainable under SFDR Article 2(17).
• No EU Taxonomy-aligned, transitional, or enabling activities reported.
• Fund applies “comply or explain” approach at entity level, not considering PAIs at product level.

Governance and Support:

• Active engagement with portfolio companies’ leadership and nomination committees on ESG priorities.
• Application of the Fund’s ESG Action Plan framework (business integrity, environment, labour & safety, community, data privacy).
• Continued support for gender-balanced recruitment and climate-friendly practices (e.g., remote meetings, sustainable commuting, digitalisation).