Schroder Adveq has an extensive ESG assessment at every step of the investment process, from sourcing through to prequalification diligence, investment recommendation and investment monitoring. As part of our due diligence we seek to understand to what degree the manager incorporates ESG principles in each aspect of their investment process and monitors the impact of their ESG decisions.
Our ESG assessment reviews a manager's:
- Leadership: how the GP demonstrates commitment and leadership on ESG issues and management;
- Policy: the guiding principles for how ESG issues are integrated into firm practices and managed at portfolio companies;
- Capacity: how the GP utilises and integrates expertise to manage and further develop ESG initiatives; and
- Culture: the activities the GP undertakes to ensure that ESG issues and their importance are understood and managed across the firm.
A fund investment may be vetoed if the manager's assessment indicates a disregard for the importance of ESG principles.