Responsible investing has been a hot topic this autumn, despite the fact that it isn’t really anything new. In fact, the UN’s responsible investing guidelines turn ten years old this year. What are the issues that investors focus on today?
19.10.2016
Responsible Investors and Active Owners
Jarno Tanhuanpää
Investors as Drivers of Change
When visiting Finland in August, Roel Nieuwenkamp of the OECD described how the focus investors have put on responsibility has completely changed the game. For example, a Dutch pension fund sold its holdings in pharmaceuticals company Mylan after it was alleged that the company’s drugs were being used to carry out executions in the US.
Institutional investors have taken the lead in the field of responsible investing for a while now, and require that ESG (environmental, social and governance) principles be complied with in their investment targets.
Private equity investors are also increasingly viewing potential investments through the lens of responsibility. Concrete evidence of this is that the Finnish Venture Capital Association is currently drafting responsible investment recommendations for its members. The recommendations point investors towards active ownership.
The key is not just to have responsibility principles in existence, but to actively weave them into the daily operations of target companies. High standards for responsibility and their effective implementation can also serve as strategic advantages when raising venture capital.
Incorporating ESG Principles into Legal Documentation
We currently seem to be seeing a kind of ESG 2.0 phenomenon. Investors and parties managing investments have a more solid will to commit to ESG principles. The clearest evidence of this is the incorporation of responsibility issues into standard legal due diligence reviews of investment targets. We have also been discussing how to incorporate ESG principles into investment documentation in a way that would be legally binding on the parties.
Reaping the Benefits of Business Opportunities
Investors have a twofold interest in responsibility issues. An ESG analysis will provide investors with an assessment of a target company’s current state. The analysis can also be used to guide an active ownership policy and steer the target company away from a path that could lead to identified cost risks being realised. On the other hand, an investor’s focus on responsibility issues can open up entirely new business opportunities based on, for example, sustainable development.
Responsibility is here to stay, and companies would be wise to make the most of the business opportunities brought by sustainable development, for example, in the circular economy.
Latest insights
Article published 7.11.2025
Stricter penalties under new sanctions violation regulation – corporate fines of up to EUR 40 million
Article published 7.11.2025 – Capital Markets & Public M&A
AIFMD II – implications for alternative investment fund managers in Finland
Article published 17.10.2025 – Intellectual Property
Is your IP safe? Eight real-life tips to avoid costly mistakes
Article published 2.10.2025 – Environment, Energy & Green Transition
Fingrid extends restrictions on new energy storage facility connections in Southern Finland until 2029
Eveliina Tammela, Janina Ketola & Touko Hakahuhta
Hannu Huotilainen & Freja Väyrynen
Lauri Laatunen & Janne Koivisto
Konsta Peussa & Marius af Schultén
Latest references
Ministry of the Environment – Report on the promotion of circular economy aspects in public procurement
Castrén & Snellman was commissioned by the Ministry of the Environment to carry out a study on how the Circular Economy Act could be used to promote circular economy aspects in public procurement. Our report provides valuable information to the working group tasked with preparing the new Circular Economy Act. The report includes an overview of relevant strategies, action programmes and policies, a look at relevant legislation and case law, an assessment of the current state of circular economy procurement and examples of integrating circular economy aspects into public procurement from around the world. We end the report with concrete conclusions and a proposal for a new circular economy provision with justification. The proposal aims to maximise the regulation’s effectiveness and minimise any adverse side effects. The final report is available on the Circular Economy Act project’s Gateway to Information (in Finnish). The study was carried out by Anna Kuusniemi-Laine, Sanna Aalto-Setälä, Lotta Huhtamäki, Marja Ollila, Laura Vuorinen, Paavo Heinonen and Anna Ylitalo.
Case published 11.11.2025
CapMan Real Estate – Acquisition of a High-Quality Residential Asset
We advised CapMan Real Estate in the acquisition and financing of a high-quality residential asset located in Katajanokka, Helsinki. The asset was acquired from the Finnish Seamen’s Service Bureau (MEPA). The property consisting of 38 modern rental apartments with a parking garage was completed in 2017. The building features high-quality construction, modern floorplans, and well-designed communal areas including a gym and rooftop sauna premises, and blends with the area’s historic maritime character. The residential asset is located in the prestigious Katajanokka seaside district of central Helsinki, known for its architectural heritage and proximity to the city centre. The property has a high ESG profile which will be further improved by CapMan Real Estate.
Case published 6.11.2025
Stena Line – Acquisition of NLC Ferry (Wasaline)
We are acting as legal adviser to Stena Line on its acquisition of NLC Ferry Ab Oy (Wasaline), strengthening Stena Line’s position in the Baltic Sea and enabling it to take over operations of the ferry route between Umeå in Sweden and Vaasa in Finland. The acquisition further strengthens Stena Line’s position as one of the leaders in sustainability within the ferry industry and enhances the company’s access to alternative fuels whilst providing a strong intermodal transport link towards Gothenburg and Trelleborg, and onwards to the European continent. NLC Ferry, operating under the auxiliary name Wasaline, were owned by Kvarken Link, a company jointly owned 50/50 by the cities of Umeå and Vaasa. Wasaline is the world’s northernmost shipping company, operating daily passenger and freight services between Vaasa, Finland and Umeå, Sweden, and is the first carbon-neutral ferry operator in the Baltic Sea with its hybrid vessel, Aurora Botnia, which runs on biogas and batteries. Stena Line is one of Europe’s leading ferry operators, with 20 routes across the continent. The company is family-owned, was founded in 1962 and is headquartered in Gothenburg, with 6,550 employees and an annual turnover of 19.6 billion SEK. The transaction is conditional to the approval of the respective municipal councils of Umeå and Vaasa as well as customary closing conditions such as authority approvals. The completion of the transaction is expected to take place in the beginning of the year 2026. Castrén & Snellman is collaborating with CMS Wistrand, Stena Line’s advisor on Swedish law matters in connection with the transaction.
Case published 4.11.2025
Prisma Properties – Acquisition of a retail property
We advised Prisma Properties in a real estate transaction in which the company acquired a retail property in Helsinki from Hartela. The acquired property was built specifically for the discount retailer Jula. Completed in October 2025, the property is modern and very energy-efficient, and it is fully leased to Jula under a 10-year lease agreement. The property located in the Konala district, adjacent to the busy Ristikko shopping centre, spans 2,600 square metres. Prisma Properties is a fast-growing developer and long-term owner of modern properties for discount retail, grocery retail, and quick-service restaurants. The company operates across the Nordics and manages a property portfolio valued at approximately EUR 650 million, primarily consisting of newly developed properties with long lease agreements.
Case published 29.10.2025