When considering potential new investments, Oakley conducts an inherent ESG risk assessment on the investee company’s sector and countries of operations.
The sector risk assessment outlines the key environmental and social risks inherent to operations of companies in that sector. The categories of inherent environmental and social risk assessment are Environment, Health and Safety, Labour and Community.
The country risk assessment assesses the overall inherent ESG risk for each country of direct and indirect operations. The external indices which inform this assessment consider the level of corruption, political development, economic development, socioeconomic development, and environmental protection within each country.
The outputs of these risk assessments are included in the initial investment papers and are discussed at the Investment Committee. Where the outputs of these risk assessments suggest a high ESG risk, Oakley may itself, or may instruct external consultants to conduct ESG Due Diligence and produce reports on significant ESG risks and opportunities.