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Gresham House plc

PRI reporting framework 2020

Export Public Responses

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Post-investment (monitoring)

PE 09. Proportion of companies monitored on their ESG performance

09.1. Indicate whether your organisation incorporates ESG issues in investment monitoring of portfolio companies.

09.2. Indicate the proportion of portfolio companies where your organisation included ESG performance in investment monitoring during the reporting year.

 (in terms of total number of portfolio companies)

09.3. Indicate ESG issues for which your organisation typically sets and monitors targets (KPIs or similar) and provide examples per issue.

ESG issues

List up to three example targets of environmental issues

Example 1

          Carbon intensity (Environment)

Example 2 (optional)

          Climate Change action planning (Environment)

Example 3 (optional)

          Waste management (Environment)

List up to three example targets of social issues

Example 1

          Job creation (Social)

Example 2 (optional)

          Supply chain management (Social)

Example 3 (optional)

          Health & Safety management/ Accident, incident & near miss reporting (Social)

List up to three example targets of governance issues

Example 1

          Board diversity (Governance)

Example 2 (optional)

          Sustainability positioning & strategy (Governance)

Example 3 (optional)

          Asset Management Reporting (Governance)

09.4. Additional information. [Optional]

Our PE ESG Asset Management tool extends beyond the pre-deal phase to our stewardship phase, with a particular focus on manageable material ESG issues that could not be resolved within the pre-deal or 100 day plan phase. We monitor ESG issues on an ongoing basis and expect our approach to remain consistent regardless of the timing within the investment cycle when the risk / opportunity has been highlighted.

Historically we have set relevant KPIs where we can and monitor progress through our engagement with companies on a routine basis, including during board meetings, where we are in attendance as NEDs. The frequency of these ESG related meetings will vary on a case by case basis and is dependent on the materiality of the issues / opportunities raised.

Until early 2020, ESG reporting was against specific items, either in the 100 day plan or raised as a result of specific requirements for corrective action. More recently, we have identified a universal set of portfolio-wide ESG KPIs which we will be asking all our businesses to report against. These are based on likely material considerations across the spectrum of investments we make, and we will continue reporting on exceptional items as required.

PE 10. Proportion of portfolio companies with sustainability policy

10.1. Indicate if your organisation tracks the proportion of your portfolio companies that have an ESG/sustainability-related policy (or similar guidelines).

10.2. Indicate what percentage of your portfolio companies has an ESG/sustainability policy (or similar guidelines).

(in terms of total number of portfolio companies)

10.3. Additional information. [Optional]

Our investment focus is on early stage business which have typically been trading for under five years and employ between 15-30 employees. As such, whilst they will have an understanding and appreciation of the ESG issues which affect their businesses, a proportion will not have developed formal ESG/sustainability policies. We view this as an area of opportunity as we are able to use our influence (in the ways discussed previously above) to guide our portfolio companies towards implementing ESG best practice consistent with Gresham House's Sustainable Investing policies.

PE 11. Actions taken by portfolio companies to incorporate ESG issues into operations (Private)

PE 12. Type and frequency of reports received from portfolio companies (Private)

PE 13. Disclosure of ESG issues in pre-exit (Private)