TowerBrook employs a 2-phase approach in diligence: (1) Phase 1 is a "scan" which provides high level ESG input from experts on ESG risks and value creation opportunities in the potential investment and (2) Phase 2 is a deeper dive into the areas highlighted.
Our focus on best practice in responsible ownership led us to study the methodology established by the Sustainable Accounting Standards Board (SASB), an independent body dedicated to enhancing the efficiency of capital markets by fostering the high-quality disclosure of material sustainability information that meets the needs of investors. We concluded that the SASB framework was particularly relevant to TowerBrook because it is thoroughly researched and grounded in materiality and value creation. Drawing on the framework proposed by SASB, we built a set of metrics on which we annually measure ESG and Responsible Ownership across our portfolio. In 2019, we built on the SASB framework, incorporating many of the elements of the B Impact Assessment to give us further insight into how our companies’ activities affect their key stakeholders and communities. As before, we organized our survey into four areas: people, planet, partnership and performance. We continue to work to develop our metrics in a way that will allow us to track and report on progress over time. A summary of our methodology and the results of our review are presented in our Responsible Ownership Report 2019 (https://www.towerbrook.com/TowerBrook_Responsible_Ownership-2019.pdf).