ESG incorporate in all steps of our investment process, from initial screening of opportunities, to investment decision-making and subsequently as part of our value creation approach. Investment managers collaborate with our inhouse ESG team to make sure ESG considerations are in work streams. We apply certain minimum ESG standards to new investment opportunities with a principles based approach to responsible investing which goes beyond a narrow implementation of defined investment restrictions only. Whenever relevant ESG is extensivey discussed in investment committee meetings, in which our Head of ESG always participates in. Numerous times per year ESG is the main reason to decline deals, which would pass all other tests (ie. financial returns, value creation potential and management strength etc.).
Once part of our existing portfolio we perform annual ESG reviews during which we have a dialogue with the management team agree ESG priorties, formulate ESG improvement initiatives and measure ESG KPIs.
Deal teams and management pro-actively come up with ESG improvement initiatives, which might be eligable for an investment from Bregal's Sustainable Development Fund, a dedicated EUR 40 m fund which provides loans at attractive terms to existing portfolio companies such as solar panels and energy savings etc.