Responsible investment is core to our strategy and takes two foundational forms:
1 -- It is part of our publicly articulated core values that we refer to by their acronym EATS: Excellence, Accountability, Transparency, and Stewardship. Everyone on our team is responsible for each of these values. The notion of RI falls under each value, perhaps most explicitly under "stewardship." We take our role as stewards of our investors' assets very seriously and are focused on operations that create near-term value and ensure long-term viability.
2 -- It is one of the four key pillars of our business: customer-focused, appropriately scaled, vertically integrated, and regeneratively managed.
We have put a number of processes and expectations in place to ensure we make stewardship-oriented decisions that reflect a regenerative mindset when we make investments.
These processes and expectations are best reflected by our AC Way sustainability framework, which is described elsewhere in this filing and includes the following key elements:
- All assets and the managers who operate them are baselined against a core expectation of responsible performance.
- Beyond that, managers are challenged to rise to the highest (tier 5) level in the framework and are required to set goals each year to make progress toward that highest tier.
- Making progress against the framework requires dedicated resources that AC believes is merited because it supports increasing positive value of the asset and what its teams produce. Each year, managers build their budgets with AC Way activities in mind and report on progress on funded intiatives on a quarterly and annual basis.
- Finally, the AC team serves a critical oversight function to ensure that managers are meeting expectations and driving toward responsible investment outcomes that reflect core strategy and the dynamic stakeholder landscape.