About this report

As we look back on 2022, we are struck by the many headwinds that show us just how interconnected social and environmental challenges can be.

The war in Ukraine has had a cascading effect on many of the issues we think about, from an energy crisis in Europe to a food crisis in developing markets. The combination of these crises—on top of the still ongoing health crisis caused by the COVID-19 pandemic—has contributed to inflationary pressures and a decrease in the standard-of-living for millions of already struggling families.

Meanwhile, in the U.S. and many other Western countries, there is a renewed interest in carbon-emitting companies under the banner of energy security, at the same time as the UN, IEA and other non-governmental organizations warn us about the need to rapidly transition away from fossil fuels. Populist politicians are fanning the flames of this debate, criticizing ESG and spreading misinformation about the financial and social impacts of climate change.

Also top of mind for many businesses and investors is the precariousness of the banking system, highlighted by the recent collapse of among others, Silicon Valley Bank. While market jitters seem to have calmed down for now, we were perhaps days away from many small businesses — especially climate and other sustainability-oriented startups — having to shut down operations or reach out to funders for an emergency lifeline. The threat of further significant disruption remains as policymakers and regulators work to stabilize our financial markets.

But despite these headwinds, we feel society is nearing a turning point as we shift from passively destroying the planet to actively saving it.

Take for example the challenge of how to reduce or eradicate unnecessary waste. Within the existing linear economy, waste and end-of-life material contribute about 22% of total CO2 emissions and annual losses of more than EUR 70bn from overuse and waste of materials. To reduce emissions and increase the functional lifecycle of both consumer and industrial materials, it is clear we need to shift to a circular economy. Our research indicates a significant opportunity to reduce material emissions by 55% and create hundreds of thousands of jobs by facilitating the transition of different sectors to a circular model. In addition, it would enable supply 80% of future material demand with end-of-life materials. This would require an investment of only EUR 230bn, but the financial value creation opportunity would be approximately EUR 1.5tn, a massive opportunity for investors, society, and our planet.

Many of the companies in our portfolio — including NG Group, Holdbart, Oda, TBAuctions, Nofitech, Tibber, and Kiona — are aligned with our Theory of Change on how to transition to a Circular Economy by 2040.

We also have strong conviction in the investment opportunities presented by Changing Demographics and Tech-Enabled Transformation.

Following the pandemic, healthcare systems have continued to be under stress. Although markets for life science companies have seen some turbulence in the current macro-economic climate, the underlying trends remain intact. The need to improve health outcomes and reduce costs is greater than ever, with precision medicine representing one of the key drivers to sector-wide improvement. Technology driven trends across topics such as the use of AI, analytics and data for driving drug development, diagnostics and patient care are strengthening. Newer drug modalities are getting increasing attention, and modern tools for driving these efforts are critical. Summa’s portfolio in healthcare is expected to continue to benefit from these trends.

Within Tech-Enabled Transformation, our key focus is B2B software related to governance, risk, and compliance (“GRC”). We have historically shown strong success within this area with EcoOnline, Pagero and Infobric. With our recent investment in LogPoint, we also enter the cybersecurity market. The global annual cost of cybercrime is predicted to reach USD 8tn in 2023. Cybersecurity software will therefore have significant societal impact as it plays a critical role in protecting individuals, businesses, and governments from cyber threats. With the increasing prevalence of cybercrime, cybersecurity software helps to safeguard sensitive data and prevent cyberattacks that can lead to financial loss, identity theft, and other serious consequences. By providing advanced threat detection and prevention capabilities, cybersecurity software also helps to maintain the stability and integrity of critical infrastructure, such as power grids and transportation systems.

We also have strong conviction in the investment opportunities presented by Changing Demographics and Tech-Enabled Transformation.

Following the pandemic, healthcare systems have continued to be under stress. Although markets for life science companies have seen some turbulence in the current macro-economic climate, the underlying trends remain intact. The need to improve health outcomes and reduce costs is greater than ever, with precision medicine representing one of the key drivers to sector-wide improvement. Technology driven trends across topics such as the use of AI, analytics and data for driving drug development, diagnostics and patient care are strengthening. Newer drug modalities are getting increasing attention, and modern tools for driving these efforts are critical. Summa’s portfolio in healthcare is expected to continue to benefit from these trends.

Within Tech-Enabled Transformation, our key focus is B2B software related to governance, risk, and compliance (“GRC”). We have historically shown strong success within this area with EcoOnline, Pagero and Infobric. With our recent investment in LogPoint, we also enter the cybersecurity market. The global annual cost of cybercrime is predicted to reach USD 8tn in 2023. Cybersecurity software will therefore have significant societal impact as it plays a critical role in protecting individuals, businesses, and governments from cyber threats. With the increasing prevalence of cybercrime, cybersecurity software helps to safeguard sensitive data and prevent cyberattacks that can lead to financial loss, identity theft, and other serious consequences. By providing advanced threat detection and prevention capabilities, cybersecurity software also helps to maintain the stability and integrity of critical infrastructure, such as power grids and transportation systems.