FSG Fund II – 2025 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 2025.
• Codes of Conduct in place at all eleven portfolio companies.
• Employee surveys implemented at six of eleven holdings (OssDsign, Promimic, BrightBid, Din Psykolog, Atley Solutions, Iconovo).
• Carbon footprint initiatives reported at OssDsign, Saga Dx, BrightBid, and Iconovo.

Portfolio Highlights (2025):

• OssDsign (26.4% of assets, Sweden) – strong revenue growth and continued governance and climate initiatives.
• Saga Dx (22.9%, USA) – workforce increased to approximately 80 FTEs and continued carbon-footprint initiatives. The company was subsequently acquired by Roche after the reporting period.
• Din Psykolog (10.2%, Sweden) – workforce expanded to 50 FTEs on a group basis.
• Oncorena (9.9%, Sweden) and Fida Biosystems (9.5%, Denmark) – among six new portfolio companies added during 2025.
• BrightBid (1.2%, Sweden, AdTech) – classified as “Other,” with safeguards in place, including a Code of Conduct and the Fund’s exclusion and governance criteria.

Sustainability Achievements:

• 98.8% of investments aligned with the fund’s environmental and social characteristics, compared with 94.3% in 2024.
• 0% classified as sustainable under the EU Taxonomy (same as 2024).
• Six new portfolio companies were added during 2025 (Aplagon, Atley Solutions, Iconovo, Oncorena, TrackPaw, and Fida Biosystems), establishing ESG baselines for future monitoring.

Limitations and Alignment:

• No investments classified as sustainable under SFDR Article 2(17).
• No EU Taxonomy-aligned, transitional, or enabling activities reported.
• The fund did not consider principal adverse impacts (PAIs) at product level, consistent with FSG Management AB’s position under Article 4 SFDR.

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 monitoring of ESG indicators and support for gender-balanced recruitment and climate-friendly practices (e.g., remote meetings, sustainable commuting, digitalisation).”