All Private Equity investment analysts are responsible for conducting ESG risk and opportunities analysis throughout the diligence of new investment opportunities. Along with the traditional analysis (such as DCF modeling, IRR projections, industry and company knowledge), ESG factors must be identified, understood in-depth and quantified in terms of NPV. Also, we utilize IRIS and ODS metrics to assess the impact of the core business, favoring thesis that are aligned with our purpose (eg: the social impact of education, which is also accompained by favourable financial prospects). All those factors must be taken into consideration on investment decisions, and are analyzed and understood by our investment board, which has the final say on capital allocation.
In addition to new investment opportunities, analysts monitor ESG KPI's and conduct an annual report for each of our direct investments, including Private Equity investments, to be discussed and analyzed by our investment board. Following the monitoring of KPI's, key directors are responsible for the improvement of such metrics, which is conducted through interaction with the management of the companies we invest in. In addition to that, Peninsula provides knowledge and support the companies we invest on the implementation of those RI initiatives, along with tracking and sponsorship from the top.
For all listed equity investments, we assess ESG factors into decision making through publicly available data collected from Bloomberg terminal (eg Bloomberg Environmental Disclosure Score, GHG emission, available policies, among others) and other providers, incuding ISS (eg ISS governance QuickScore, ISS Board Score, ISS Audit Score, among others) and Sustainalytics (eg Sustainalytics Environment, Social and Governance Percentiles).