Odyssey believes an analysis and understanding of ESG criteria as part of the investment decision leads to the better identification of both risks and opportunities.
Odyssey will not screen investment opportunities based solely on ESG criteria, however investment evaluation will include consideration of the ESG risks, the potential implications of not mitigating the identified ESG risks and a structured level of engagement with investee companies and their management teams to reduce exposure to identified ESG risks.
As part of the investment process, Odyssey will use ESG checklists to assist the investment team identify and consider ESG issues and opportunities for each investment opportunity. These checklists vary in detail between the initial screening level and within the due diligence phase.
ESG issues will be assessed early in the screening process and identified issues will be subject to further review as due diligence progresses. Findings will be included in internal team discussions and the formal investment paper provided to the Investment Committee.
When seeking to mitigate ESG risks, Odyssey does not believe that financial returns should be unnecessarily compromised and will seek to implement this policy on a ‘no worse off’ basis with regards to expected investment performance.
For the avoidance of doubt, funds managed by Odyssey will not invest in sectors that their board considers unethical. This include armaments, tobacco, pornography and gambling.