In today’s business world, companies are increasingly expected to uphold higher standards in environmental, social, and governance (ESG) practices. Article 9 of the European Union’s Sustainable Finance Disclosure Regulation (SFDR) represents one of the strictest benchmarks for sustainability. Known as “dark green” funds, Article 9 funds are fully focused on sustainability and require solid evidence of their positive impact.
Our investor, Nordic Alpha Partners (NAP), a growth equity fund with a strong commitment to sustainability, recently arranged for a third-party assessment of Airwatergreen to verify that we meet the stringent requirements of Article 9.
Our innovative approach to sustainability
At Airwatergreen, we are dedicated to innovation in energy-efficient and sustainable dehumidification solutions. Our dehumidifiers use unique technologies that operate efficiently at any temperature, ensuring optimal indoor air quality with minimal energy use.
As highlighted in a recent study published in ScienceDirect, this approach offers significant advantages in terms of life cycle assessment. Unlike conventional dehumidification systems that rely on energy-intensive processes, our technology significantly reduces energy consumption, optimises resource use, and minimises environmental impact throughout the entire product lifecycle.
The study emphasises how our low-energy condensation method can significantly lower carbon footprints by efficiently managing moisture without the high energy demands of traditional dehumidifiers. For us at Airwatergreen, this translates to not only operational cost savings but also a significant reduction in greenhouse gas emissions, aligning our technology closely with ESG principles and global sustainable development goals.
Understanding ESG Article 9 and its importance
The SFDR aims to increase transparency in the financial sector regarding sustainability. It categorises financial products based on their sustainability focus, with Article 9 being the most demanding classification. Article 9 funds are required to have a clear sustainable investment objective and must disclose in detail how they achieve these objectives, along with their impacts.
This involves rigorous due diligence and verification of the sustainability credentials of the companies included in these funds. In this context, third-party assessments play a critical role in validating whether a company genuinely aligns with the ESG goals that Article 9 funds commit to achieving.
Ensuring transparency and accountability
Nordic Alpha Partners recognised the potential of Airwatergreen’s innovative technology and included it in their investment portfolio, aligning with their focus on growth-stage companies that contribute to sustainability. However, to ensure their fund meets the stringent requirements of ESG Article 9, NAP commissioned a third-party assessment of our company.
The assessment, conducted by an independent third party, was designed to verify whether Airwatergreen’s operations, products, and overall impact align with the criteria set out by Article 9 of the SFDR. The evaluation included a thorough examination of Airwatergreen’s sustainability metrics, environmental impact, governance practices, and overall contribution to sustainability objectives. Key factors reviewed in the assessment likely included:
- Carbon Footprint Reduction: Evaluating the impact of Airwatergreen’s liquid desiccant technology on reducing greenhouse gas emissions.
- Energy Efficiency: Assessing the energy savings achieved through the use of Airwatergreen’s dehumidifiers compared to traditional methods.
- Sustainable Operations: Reviewing the company’s commitment to sustainability across its supply chain, manufacturing processes, and end-of-life management.
- Transparency and Reporting: Ensuring that Airwatergreen provides comprehensive, accurate, and regular reporting on its sustainability impacts and practices.
Aligning with Article 9 standards is not just a one-time achievement for Airwatergreen; it represents a continuous journey of improvement. We are committed to ongoing transparency, innovation, and the pursuit of sustainability goals, which are at the core of our mission. As we continue to develop our technology and expand our market reach, maintaining this high standard of ESG compliance will remain a central focus, helping us lead the way in sustainable innovation.
Credibility and market differentiation
The successful third-party assessment of Airwatergreen’s compliance with Article 9 requirements is a key milestone in our sustainability journey, as it significantly enhances our credibility and market position.
Enhanced Reliability and Trust
This independent validation demonstrates that our commitment to sustainability goes beyond mere marketing—our efforts are backed by real, measurable actions and outcomes. This credibility is essential in building trust with our partners and customers who seek authentic and impactful solutions to support their own sustainability goals.
Market Differentiation and Growth Opportunities
In a competitive landscape where sustainability claims are frequently exaggerated, Airwatergreen’s verified compliance with Article 9 standards clearly distinguishes us as a leader in sustainable technology. This recognition not only strengthens our reputation but also enhances our competitive edge in both existing and new markets. By meeting the rigorous criteria of Article 9, we are well-positioned to expand internationally and enter markets that demand high standards of sustainability and prioritise genuine environmental impact.
Looking ahead, this alignment with Article 9 standards is not just a one-time achievement but a continuous journey of improvement. It calls for ongoing transparency, innovation, and commitment to sustainability goals, which are at the core of Airwatergreen’s mission. As we continue to develop our technology and expand our market reach, maintaining this high standard of ESG compliance will remain a central focus, helping us lead the way in sustainable innovation.
