This report shows public data only. Is this your organisation? If so, login here to view your full report.

EQT

PRI reporting framework 2017

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.4. Indicate what norms you have used to develop your investment policy that covers your responsible investment approach.

01.6. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

EQT has adopted a Responsible Investment Policy (“RI Policy”) according to which EQT undertakes to a) act at all times as a responsible owner promoting appropriate environmental, labor and human rights and ethical standards (“RI Factors”) in portfolio companies; and b) when assessing potential investments, to consider RI Factors as part of due diligence. EQT’s RI Policy explicitly gives the boards of directors of every portfolio company a mandate to define, address and monitor relevant RI Factors and it is  expected that the board of every portfolio company discusses its company’s compliance with RI Factors at least once a year. Those EQT funds which do not typically have control or co-control have adapted an appropriate governance model and their influence on RI Factors may be limited.

The RI Policy for EQT was adopted in March 2010 to further articulate and formalize what was already implicitly part of both EQT’s investment process and ownership model. EQT’s RI Policy considers RI Factors, formulated to be in line with international conventions and standards, more specifically with the UN Global Compact’s ten principles in mind. The most recent version of the RI Policy was released in April 2012 following EQT’s decision to manage future funds onshore. A review of the RI Policy is conducted on a yearly basis by EQT’s RI team in liaison with the EQT Executive Committee. Any changes to the RI Policy require the approval of the general partners and managers of the respective EQT funds.

For further information on EQT’s investment policies or guidance documents, please also refer to indicator SG 02.4 below.


SG 02. Publicly available RI policy or guidance documents

New selection options have been added to this indicator. Please review your prefilled responses carefully.

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

URL/Attachment

URL/Attachment

URL/Attachment

URL/Attachment

URL/Attachment

URL/Attachment

02.4. Additional information [Optional].

EQT applies an integrated approach to responsible investment. Hence, the consideration of ESG factors, either explicitly or implicitly, permeates all relevant EQT policies or guidance documents such as EQT’s Code of Business Conduct, fund procedures manuals, fund investment advisory agreements, investment recommendation and portfolio company periodic review templates, appraisal systems etc. These documents are often of a commercially sensitive nature and therefore not publicly disclosed.


SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

EQT is deeply committed to avoiding conflicts of interest and there are clear policies in place to mitigate any potential conflict that may arise during the course of business. Various potential and actual conflicts of interest may arise from the overall investment activities of EQT. In particular, EQT is very mindful about EQT funds with different investment strategies making investments in the same company. When a potential conflict is identified, the general partner or manager of the relevant fund(s) must disclose it during the board meeting and ensure the conflict is resolved fairly, within reasonable time and in the interest of the investors of the fund(s). To minimize a potential conflict, the general partner or manager may, among other things, decide to split the board, excuse certain individuals from the decision, review the deal allocation and size or request evidence that the transaction will be conducted at arm’s length. Should the general partner or manager be unable to resolve a conflict on its own, it will be escalated to the EQT conflicts committee. Furthermore, each EQT fund has its own investor/limited partner advisory committee to whom conflict questions are presented.

03.3. Additional information. [Optional]


SG 04. Identifying incidents occurring within portfolios

04.1. Indicate if your organisation has a process for identifying and managing incidents that occur within portfolio companies.

04.2. Describe your process on managing incidents

          Having robust processes in place is crucial to EQT’s strategic vision to be the most reputable investor and owner. Critical characteristics of such processes are clear division of responsibilities, seamless interaction across functions and transparency. EQT’s process for identifying and managing potential incidents within portfolio companies is no different. Through a formalized process, involving key functions within EQT, investment advisory teams can report incidents and crises in portfolio companies to ensure better control and support. Based on the nature of the incident, an assessment is made regarding further handling. This incident reporting routine does not replace the portfolio companies’ own crisis management processes but rather complement these. Incident reporting to investors and other stakeholders further occurs on a case-by-case basis. Please refer to the ‘Private Equity’ and ‘Infrastructure’ modules and the respective indicators PE 19.1 and INF 23.1 for more information.
        

Top