By having board representation on the portfolio companies we invest in we receive board information that contains significant ESG information, including performance data for ESG targets. This is typically part of the normal Board reporting cycle, which is usually monthly or quarterly.
For example, companies report on energy and water use, embodied carbon reduction performance, safety performance, pollution and other environment compliance outcomes, customer satisfaction data, service level statistics and other targets as set by the board. We usually receive monthly and quarterly reports including performance data and ESG information.
Annual reporting documentation from a majority of our companies also provides summary outcomes of ESG performance available for a broader stakeholder audience. Most of our portfolio companies for example produce some kind of sustainability or ESG report in addition to the required financial reports,
As part of our governance approach we usually establish an Environmental, Health& Safety committee as a subcommittee to the supervisory board which specifically focuses on the review and assessment of ESG issues in the respective company. These committees meet on a regular basis to discuss particular topics in a more detailed way.
To determine the format of ESG reporting we frequently refer to guidelines and recommendations given by IFC/ World Bank with respect to the relevant sectors, but also to those required by national or international associations which issue certifications and accreditations.