A.P. Moller Capital

About A.P. Moller Capital

A.P. Moller Capital is a fund management company investing in critical transport, logistics and energy infrastructure in growth markets. A.P. Moller Capital currently manages two funds, a 2017 vintage Article 8 fund under the Sustainable Finance Disclosure Regulation (SFDR), and a 2022 vintage Article 9 fund with social and environmental investment objectives.

The challenge

As an EU-based fund manager, A.P. Moller Capital must comply with SFDR obligations, including reporting on principal adverse impacts. In addition to regulatory reporting requirements, A.P. Moller Capital also collects fund-level KPIs to monitor the ESG performance and impact of its portfolio companies. This leads to a complex set of reporting requirements for portfolio companies operating in markets where legislation may not align with EU standards.

Carmen Navarro, Head of ESG at A.P. Moller Capital, explained the desire to enhance the reporting and data collection processes as the company continues to grow. It was determined that the KEY ESG software could assist with the accurate and efficient collection of ESG data across their portfolio.

The solution

Following a smooth onboarding process led by KEY ESG’s in-house SFDR experts, A.P. Moller Capital portfolio companies were able to efficiently submit data to the platform. Portfolio companies can now close out their first reporting cycle within 3-months and have started using KEY ESG’s exportable reports for other ESG reporting, extending beyond the requirements of A.P. Moller Capital.

Given the diverse ESG maturity levels across A.P. Moller Capital’s portfolio, Carmen commented that using KEY ESG’s educational resources on the platform have helped empower the portfolio companies to play an active part in the reporting process.

“We set out originally to improve efficiency at the fund manager level and have been delighted to see efficiency improvements trickle down to the portfolio company level and deliver added value."

Carmen added that “The audit trail which KEY ESG provides is very helpful to enhance our data collection process. Now we get a notification and an automated record of any updates so we can more easily spot inconsistencies and collaborate with portfolio companies to address them and thereby more efficiently adjust our reporting if required.”

Next steps

A.P. Moller Capital has ambitions to reduce carbon emissions across its portfolio, with targets set for its SFDR Article 9 fund. Leveraging KEY ESG’s carbon accounting tool, it aims to enhance reporting on carbon emissions, including scope 3. Portfolio companies in A.P. Moller Capital’s Article 9 fund will be able to use the action plans and targets functionalities in the platform to integrate science-based targets and monitor progress toward achieving them.

Additionally, A.P. Moller Capital is working closely with KEY ESG’s product development team to develop new product features which will allow them to use our platform as a 360 hub for all their ESG management needs and defining ESG action plans from acquisition to exit. KEY ESG is excited to go through product iterations with A.P. Moller Capital and looks forward to the resulting benefits for them and our other customers.

To view A.P. Moller Capital's ESG Report 2023 which was created in partnership with KEY ESG, please click HERE.