ESG integration is undertaken by the deal teams with the support of the RI team. During the due diligence phase, we assess investment opportunities against a set of standard ESG criteria. . This involves completion of a private equity/debt ESG checklist to identify and document ESG-related risks and opportunities specific to the particular company, sector and geography. The checklist consists of a standard set of ESG questions for all private equity and private debt investments, regardless of sector, plus an exclusions list and a screen for country-level geographic risks. It includes ESG data and materiality guidance from widely-used industry sources, including Verisk Maplecroft and SASB. The checklist is included in the investment approval memo presented to the Investment Committee, which must discuss and unanimously approve investments. During the holding period, our investment teams conduct frequent reviews with management teams and investment partners to discuss challenges, complaints or legal claims relating to ESG issues. ESG risks, concerns and opportunities, should they arise, are discussed at quarterly portfolio reviews, or more frequently if required.

During the due diligence phase we undertake background checks on all counterparties and operators, ESG risk assessments by third parties, and detailed review of risks and mitigating actions. Any ESG issues that pose risks during the holding period are carefully monitored and managed. Additional ESG oversight, both pre- and post-investment, is overseen by an internal risk committee that focuses on operational risks. This committee uses a separate scorecard that includes ESG issues.

Gresham and Nuveen’s RI Team are currently working to define best practices in ESG for commodity derivatives, which currently does not exist. To this end, we have worked with UNPRI to launch a commodities working group (which has not progressed), have drafted an ESG approach for Gresham’s strategies, scored Gresham’s long-only strategy based on ESG criteria and created a mock ESG commodity index based on this scoring exercise. We continue to conduct research and development to develop and refine ESG practices in this asset class, and are committed to engaging with industry peers, UNPRI and commodity exchanges to do so.

During the due diligence phase we undertake background checks on all counterparties and contractors, ESG and climate risk assessments by third parties, detailed legal title review for purchased properties and review of risks and mitigating actions. The UNPRI Farmland Guidelines influence our approach to planned investments−from how we conduct pre-investment due diligence to how we select partners, contractors and submanagers. Where the right local conditions and resources exist, we proactively engage a range of stakeholder and community members to understand ESG issues and risks. After an asset is acquired, we reassess and monitor its ESG performance using twice-a-year attestations and third-party certifications. We ensure that assets are managed responsibly through ongoing oversight, and we employ best practice tools for spatial and tabular resource data management, analysis and modelling. This work is informed by our Standard Operating Procedures and Forest Management System. We track progress on our ESG performance each year using a set of KPIs that map to the UNPRI Farmland Guidelines.

We follow a strict ESG due diligence process before acquiring property. Examination covers legal ownership rights and the farmland management practices of third-party managers, joint venture partners, tenants or operators, and financial risk and return analysis. We strive to continuously improve our process for determining land rights, particularly in regions with maturing legal structures. We also assess a range of environmental impacts and risks, including pesticide storage, harvesting practices, water rights and water use efficiency, and presence of endangered species.  In addition, we conduct ESG audits in Brazil to monitor and enhance sustainability practices in partnership with tenants on farms. Following acquisition, our team actively monitors each farm with annual site evaluations to assess property-level performance against the UNPRI Farmland Guidelines. Each year, we report on a variety of property standards, ranging from infrastructure maintenance and harvesting practices, to compliance with legal, employment and other local regulations. We make regular site visits to verify that farm management practices and working conditions meet our high standards. We track progress on our ESG performance each year using a set of KPIs that map to the UNPRI Farmland Guidelines.

Please refer to our Inclusive Finance Direct module.