As a business focused on facilitating the transition to a lower carbon economy, we make principled investment decisions and hold our investee companies to high standards with regards to:
The management of the health, safety and welfare of their employees; and
Their impact on the environment and the communities in which they operate.
We work closely with our portfolio companies to improve ESG performance over the lifecycle of our investment. We do this by:
- ensuring the ESG functions within the company are adequately resourced;
- supporting companies to develop proportional Environmental and Social Management systems;
- defining short and longer-term priorities within an ESG Action Plan.
- formally monitoring performance and progress against these plans.
- collaborating with our portfolio companies to develop innovative solutions to the complex challenges they face along their ESG journey.
By working closely with our assets to enhance their ESG performance we build resilient companies with responsible working practices, which, ultimately, creates more long-term value for all stakeholders
We use the International Finance Corporation's Performance Standards on Social and Environmental Sustainability (2012) as our policy framework, and we require our portfolio companies to apply these standards to their own operations.
Assess and Understand
- ESG diligence is integral to our investment process: we seek to understand all ESG aspects from a risk and opportunity point of view.
- Consider the company's current capacity to manage its social and environmental risk.
- Assess the company's current performance in regard to the IFC Performance Standards.
- Ensure the company does not in engage in any activities within our Exclusion Criteria.
Manage and Improve
- Help to develop a fit-for-purpose Environmental and Social Management system to manage risk within our portfolio companies at a corporate and asset level.
- Collaboratively develop bespoke ESG action plans for each company to improve their performance and achieve alignment with the IFC Performance Standards.
Monitor and Report
- Conduct quarterly check-ins with portfolio companies to assess progress on their ESG action plan and identify any challenges or bottlenecks.
- Work collaboratively with external companies and consultants if necessary to solve complex issues.
- Conduct monitoring visits to our portfolio companies to understand their progress in real-world terms.
- Report meaningfully to our shareholders on our company's performance at a portfolio level.
Exit and Review
- Prepare for a sustainable exit by ensuring strong ESG performance is mainstreamed within the company, backed up by strong board-level support and accountability.
- Be honest with ourselves about the lessons learnt and incorporate them into our future decision-making processes.