Xeraya has integrated the consideration and thoughtful management of ESG issues structurally into our investment decision making process, across all stages. The focus is on ESG factors that are material from a financial or risk point of view.
At the Screening Stage, as best possible, the Investments team will appropriately identify the potential investment’s ESG risks and value creation opportunities. The deal team will seek to identify how or whether the investment opportunity fits Xeraya’s investment mandate and ensure that the investment opportunity is not on Xeraya’s Prohibitive Investment list.
At the next stage of investment, the depth of the Due Diligence procedures should be based upon the categorization of the investment opportunity. High Risk and Moderate Risk investment opportunities should undergo more in-depth risk and impact assessment. Depending on the circumstances, technical consultants may be engaged for additional expertise. The capacity, commitment and track record of the management team will be assessed. Any circumstances that would result in a decision not to move forward into the investment decision stage will be identified, described and recorded.
At the Investment Stage, in consultation with the dedicated PRI team, based on the ESG risks and opportunities identified, specific short-term and long-term recommendations will be made to close ESG performance gaps and enhance ESG practices. A portion of the investment paper/memo (depending on level of risk identified) is dedicated to the ESG assessment. The deal team will engage with the management and develop an appropriate actionable plan. Once a suitably acceptable plan has been developed, the findings and proposed action plan should be presented to the Peer Review Committee, Investment Committee and Board.