Livonia Partners is pleased to share our 2025 Environmental, Social and Governance Annual Report.
This year’s report reflects a more complex operating environment, where sustainability is increasingly being tested not by ambition, but by execution. Across markets, environmental and social priorities are becoming more directly linked to business resilience, energy security, operational efficiency, governance quality, and long-term competitiveness. For Livonia, this reinforces our view that ESG should not sit alongside value creation, it should be part of how companies are built, managed, and prepared for growth.
In 2025, we continued to strengthen ESG integration across the investment lifecycle, from screening and due diligence to ownership and exit preparation. ESG responsibilities are embedded in our governance model, including investment team accountability, portfolio board oversight, and ESG-linked annual bonuses for investment and operations teams.
At portfolio level, the year marked a shift from building ESG frameworks to embedding them into day-to-day operations. Renewable electricity increased to 82.1%, renewable energy reached 45.2%, and green contributions grew to €12.9 million. All portfolio companies now measure employee satisfaction, the unadjusted gender pay gap decreased from 24.7% to 17.7%, and women’s representation on boards increased from 15.4% to 21%.
Several practical examples are featured in the report. CSUB transitioned to 100% renewable electricity, improved waste segregation at its Eydehavn site, and commissioned an independent social audit as part of its expansion into Qatar. Bagfactory continued scaling reusable bags made primarily from recycled materials, showing early signs of decoupling emissions growth from revenue and production growth. Digmatix implemented a centralized HR system that improved workforce and compensation data quality, supporting more accurate pay equity analysis. Medicum, our new healthcare investment, began strengthening governance, information security, patient experience, and energy efficiency, including through an energy audit and waste heat recovery from MRI cooling infrastructure.
We also continued to contribute to the broader Baltic private markets' ecosystem. In 2025, Livonia held board representation across all three Baltic venture capital associations, supported regional PE and VC events, helped launch Level 20 in the Baltics, and continued academic engagement across Lithuania, Latvia, and Estonia.
The report also reflects areas where continued work is needed. Progress is not uniform across the portfolio, and some topics — including workplace safety, further decarbonisation, data quality, and governance implementation in newly acquired companies — remain active priorities. Our focus for the coming year is to keep moving from measurement to implementation: translating ESG plans into practical actions that strengthen the companies we invest in.
Read the full report here.