Terra Firma contributes to the portfolio’s management of ESG in a number of ways. Firstly, Terra Firma actively engages with executive management in matters of governance, strategy and operations. We aim to create high standards of operational excellence and encourage discussion of all material factors, whether those be financial, operational or commercial.
Terra Firma staff take seats on investee Boards and share good practices between investee businesses. All of Terra Firma's businesses fall under our standard governance and reporting framework. This requires high levels of corporate governance and transparency, which is a fundamental aspect of our highly active investment management approach.
Secondly, Terra Firma requires its portfolio businesses to report on ESG matters. Each business confirms its compliance with the firm's ESG principles annually and reports ESG metrics relevant to its operations. In addition, where ESG issues are particularly relevant these are reported on more frequently.