ESG is embeded in our financial analysis, so we factor in ESG performance as a proxy for quality in our valuation models. Due to our investment style - investors in private debt with lack of comparables - we do not pursue a best in class approach.
In its responsible investment policy Oquendo establishes several principles that rule the activities carried out by the organisation and its investees. Some of those principles are listed below:
ENVIRONMENTAL: Oquendo designs and implements a proactive behavior to environmental challenges. This includes the assessment, management and communication of risks and it is aimed at avoiding or minimizing environmental damage. All players directly or indirectly responsible for environmental damage are obliged to undertake appropriate remedies and offer compensation as soon as they are aware of the damage causation.
We are also focused on complying with environmental laws and regulations and follow international standards and principles, such as limitation of emissions of harmful substances and waste and use of natural resources responsibly such as water and materials.
Additionally, we achieve cost savings and other value creation through improved eco-efficiencies and investment in sustainable products, services and technologies, rather than other non-sustainable, no matter of the cost difference
SOCIAL: We are also focused on complying with environmental laws and regulations and follow international standards and principles, such as limitation of emissions of harmful substances and waste and use of natural resources responsibly such as water and materials.
Additionally, we achieve cost savings and other value creation through improved eco-efficiencies and investment in sustainable products, services and technologies, rather than other non-sustainable, no matter of the cost difference.
We provide healthy and safe-working environments, including the adoption of appropriate precautionary measures to protect employees, service providers, the local community and any other players affected.
We promote diversity and equal treatment without consideration for age, gender, marital or parental status, sexual orientation, ethnic or national origin, culture, political affiliation, physical ability, appearance, education or religious background.
Elimination of discrimination in respect of employment and occupation, fighting against discriminatory practices in recruiting, promoting and rewarding employees is also critical for Oquendo. Specifically, policies, procedures and practices are not applied in ways that may negatively impact a particular employee or a specific group of employees or potential employees.
Oquendo promotes and contributes to the elimination of all forms of forced or compulsory labor and, specifically, the abolishment of child labor. Oquendo respects the internationally recognized labor rights, which enables workers to express their opinions, including claims and complaints and protecting their rights with regard to working conditions to the extent permitted under local law.
CORPORATE GOVERNANCE: Oquendo promotes professional and best-in-class corporate governance. Assess companies’ corporate governance performance in light of compulsory regulations, local rules and regional best practice in their own markets.
We support effective board structures, with an appropriate allocation of executive responsibilities and balance between executive and independent directors, with fair and consistent remuneration to the employees and key roles according to the performance of their functions, fully aligned with the interests of the company and stakeholders.
Oquendo designs an independent audit and transparent policies in order to ensure conducts of the companies are law-abiding and proportionated, maintaining business integrity, being compliant with relevant international standards, conventions and agreements on business integrity, anti-corruption and anti-bribery and appropriate management of associated risks.
We are currently formalizing additional detailed guidelines to further strengthen monitoring and the deployment of ESG factors in our portfolio management.