This report shows public data only. Is this your organisation? If so, login here to view your full report.

Xeraya Capital

PRI reporting framework 2020

You are in Direct – Private Equity » Pre-investment (selection)

Pre-investment (selection)

PE 05. Incorporating ESG issues when selecting investments

05.1. During due-diligence indicate if your organisation typically incorporates ESG issues when selecting private equity investments.

05.2. Describe your organisation`s approach to incorporating ESG issues in private equity investment selection.

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.

 

05.3. Additional information. [Optional]


PE 06. Types of ESG information considered in investment selection

06.1. Indicate what type of ESG information your organisation typically considers during your private equity investment selection process.

06.2. Describe how this information is reported to, considered and documented by the Investment Committee or similar.

Where there are material issues identified during the diligence process, either include the management of these issues in a 100-day plan post-close, or otherwise monitor ongoing progress on ESG issues, as applicable. Where management of, or performance on, a material issue is considered by Xeraya to need improvement, the investments team will work with company management to support the development of a corrective action plan. Once a suitably acceptable plan has been developed, the findings and proposed action plan will be presented to the Peer Review Committee, Investment Committee and Board.

The ESG assessment will be included as part of the proposed investment with suggestions for ESG terms included in the definitive agreement(s). As appropriate, depending on the nature of the investment, time-bound ESG action plans to close ESG performance gaps, setting ESG targets and requirements to report on performance may be included in the definitive agreement(s). Alternatively, the deal team and company management may incorporate such action plans, targets and reporting requirements into management’s ongoing key performance indicators (“KPI”).

 


PE 07. Encouraging improvements in investees (Private)


PE 08. ESG issues impact in selection process (Private)


Top