An annual ESG review is conducted on each portfolio company by an independent ESG consultant. Each portfolio company is scored against the SilverStreet Responsible Investment Code (RIC). The annual review also results in an ESG action plan for management to implement.
The annual ESG report is compiled using and considering the UN Sustainable Development Goals (SDGs), relevant IRIS metrics, the International Finance Corporation (IFC) Performance Standards, our own Responsible Investment Code (RIC), the UN Global Compact and the UN Principles of Responsible Investment (UNPRI).
To enable SilverStreet Capital, and investors, to understand the progress a company has made in their compliance with the Responsible Investment Code, and other international standards such as the IFC Performance Standards, SilverStreet Capital uses a scorecard approach. The scores are measured independently against seven topics covered in the Responsible Investment Code.
Silverlands I: SilverStreet is proud to report that overall there has been a positive trend in compliance by all portfolio companies. As portfolio companies have become more established, the focus has shifted from major items to finessing the integration of ESG into the business. As such, we anticipate scores to remain in early- to mid-nineties overall (94% in 2019), as they have for the last few years.
Silverlands II: The overall compliance score has improved substantially in 2019 with overall compliance now up to 82%. Implementation is ongoing and we expect scores to rise to the medium-term goal of over 90%.