We have formed a dedicated ESG team, composed of our Performance Improvement Principal, Alex Kesseler, and internal ESG Expert, Felix Heon. Since January 2020, our ESG team is also supported by an ESG Analyst Intern.
Our ESG team works in close collaboration with all of our portfolio companies throughout the investment cycle, helping them identify, assess and manage ESG risks and opportunities.
For each of our portfolio companies, post-closing, our ESG team performs an in-depth ESG materiality assessment to identify the ESG issues that matter the most to their business and stakeholders (e.g. employees, clients, investors, regulators, local communities, etc.).
Sample ESG issues that are covered by this assessment include, but are not limited to, climate change impact and vulnerability; energy, fuel and water management; air pollution; ecological impacts; waste management; occupational health and safety; labour relations; employee wellbeing, training and development; community engagement; corporate governance; business ethics; personal data protection; cybersecurity; and responsible sourcing. To assess the materiality of an ESG issue, we consider the various risks that it might pose to the company’s business and the value creation opportunities that it could potentially offer.
Following this assessment, our ESG team, or external ESG consultants when deemed necessary, conducts an in-depth ESG review to assess the policies and procedures that have been implemented by the portfolio company to address material ESG issues identified, including site visits as well as several meetings with Management and Operational teams. The results of that review are then used to highlight areas of progress and establish an ESG performance improvement action plan for the portfolio company. Progress towards implementing this plan is monitored by the Investment team throughout the holding period during regular Board meetings and on-site ESG reviews.