Lesson #4
Scaling creates value
Individual energy projects can appear modest in isolation. The real value emerges when improvements are applied systematically across a portfolio. The challenge is identifying which solutions can be standardised and scaled.
Slättö's total energy capex investments executed so far have an expected multiple on capital of 2.5x. Individual projects span a range of returns. The objective is not for every investment to achieve the same return, but to maintain a pipeline of commercially attractive projects that, when deployed systematically across the portfolio, continue to create meaningful value.
How we do it
Solutions that are scaled across several assets
Not every energy solution is suitable for every building. Slättö focuses on identifying repeatable measures that can be deployed efficiently across multiple assets where the technical and commercial conditions are right.
AI & digitalization
Digital solutions can often be deployed across large portfolios with relatively low installation costs and limited operational complexity.
Following a successful pilot, AI-driven heating optimisation is now being rolled out across Slättö's newly built residential portfolio.
Geothermal conversion
A scalable solution for suitable assets. By replacing district heating, geothermal reduces operating costs and exposure to future district heating price increases. Slättö systematically screens the portfolio to identify commercially attractive candidates.
Residential "always-do"
For older residential assets, a number of energy improvements consistently deliver attractive returns and are therefore considered standard measures where applicable. These include water-saving fixtures and attic insulation, for example.
Scaling energy efficiency in a portfolio
Apart from repeating individual energy improvements, scaling is also about changing the overall risk and quality profile of a portfolio.
Slättö measures the combined impact of risk mitigation, energy uplift and build green at fund level, tracking how the share of Taxonomy-aligned assets increases as the strategy is executed. This provides a clear view of how systematic execution can both create value and reduce portfolio risk.
How we do it
Impact at fund level
One example is Slättö's value add strategy, which includes acquiring assets with improvement potential and enhancing their energy performance during the holding period. By exit, approximately 80% of the portfolio is expected to qualify as green assets under the EU Taxonomy.
This creates value in multiple ways: improved operating performance, reduced liquidity risk, and establishing a broader pool of potential buyers at exit.
This chart shows the pro-forma Taxonomy alignment of a Slättö value add fund.
Taxonomy is the EU standard for green assets and is a measure both of energy efficiency and climate risk management.
Ths aim is to reach Taxonomy alignment for as much as possible of the fund's portfolio.
Taxonomy alignment is included in the asset plans at transaction, based on due diligence.
For assets under management, the share of green assets and assets in transition is monitored regularly.