The EDD process feeds into the investment decision making process. The process seeks to identify what ESG risks exist, how they are being mitigated, and then rank whether the residual risk remains high, medium or low. The risks and mitigating factors are presented at a deal close out meeting and highlighted in the Private Markets Investment Committee (PMIC) Investment Memo, upon which the final investment decision is taken.
The nature of direct and co-investments, means it is unlikely we would seek or have available data from all the above sources for every deal and the scheme takes a risk based approach appropriate to the deal's timings, origination, expertise and knowledge.
For deals where USS is taking a direct investment, the scheme will appoint specialist external advisors, and consultants to assess ESG issues if these are deemed material for the asset under investigation. Where there are physical assets included in the deal, this typically includes specialist environmental consultants.