Bridges is a specialist fund manager dedicated to sustainable and impact investment. We therefore use an impact-driven approach to create returns for both investors and society-at-large across all our funds. While we select companies that will generate our intended outcomes in line with our primary impact-driven investment thesis, we also recognise that every investment has the potential to generate other societal outcomes, both positive and negative.

Prior to making an investment, our investment team works with the management team of the prospective portfolio company to identify ESG risks and opportunities for value creation. To guide this discussion, we have developed an in-house risk assessment screen based on global best practices but adapted to fit the needs of investees operating in our areas of thematic focus. Our emphasis is on making this ESG risk screen as practical as possible - on making it a conversation about operational excellence. We use a materiality lens to grade each risk as a high, medium or low priority and record the results on a risk register. For each material risk, we propose a mitigation plan in the Investment Committee paper, so that our investment decision is made with a holistic view of projected impact and a 100-day plan can be developed. Thereafter, ESG issues are reviewed regularly at Board meetings with investee companies, as well as at our own firm-level portfolio review meetings. Once a year, each investee provides a snapshot of any new or outstanding ESG issues, as well as progress against targets, through our Impact Scorecard.