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TowerBrook Capital Partners

PRI reporting framework 2020

You are in Strategy and Governance » Objectives and strategies

Objectives and strategies

SG 05. RI goals and objectives

05.1. Indicate if and how frequently your organisation sets and reviews objectives for its responsible investment activities.

05.2. Additional information. [Optional]

TowerBrook's Responsible Ownership Committee meets at least quarterly to set and review objectives for responsible investment activities. The RO Committee reviews relevant policies and procedures and monitors efforts to implement responsible ownership programs across the portfolio.


SG 06. Main goals/objectives this year

06.1. List the main responsible investment objectives that your organisation set for the reporting year.

Responsible investment processes

Key performance indicator

          Training for investment teams and portfolio company management
        

Progress achieved

TowerBrook provided comprehensive ESG training to our investment teams in 2017. During 2018 and 2019, members of the Portfolio Group and TowerBrook’s Legal Team periodically provided refreshers on this training to deal teams on an ad hoc basis to help understand and identify the relevance and importance of ESG and responsible ownership factors in investment activities.

TowerBrook VisionOn roundtables bring together sector experts, senior executives and members of our team in a small, private forum where they can exchange ideas and chart new opportunities for sustainable value creation. Through sharing our experience and insights, we aim to make mutually beneficial connections, stimulate creative thinking and partner with leaders to deliver value for our investors, now and in the future. Our first VisionOn event focused on the Food and Beverage sector was held in November 2017, and the second on Retail was held in March 2018. In October 2018, we VisionOn Responsible Ownership in New York. TowerBrook hosted two VisionOn events in 2019, the first focused on Responsible Ownership in March 2019 in London, and the second focused on Plastics and Packaging in September 2019 in New York.

Key performance indicator

          Training for investment teams and portfolio company management
        

Progress achieved

In 2017, Dr. Mahzarin Banaji of Harvard University provided unconscious bias training to our team members. In 2018, we held half-day sessions focused on D&I for all team members covering an overview of biased language, and elimination of bias in interviewing, recruitment, and staffing. In 2019, TowerBrook rolled out an online training module covering Modern Slavery. In December 2019, the CCO provided training to MDs on unconscious biases in performance reviews.  We continue to develop metrics to track the progress of our firm and our Portcos in promoting a diverse and inclusive working environment.  TowerBrook’s report “Diversity and Inclusions at TowerBrook” was published in November 2019, and is available on our website (https://www.towerbrook.com/TowerBrook_Diversity_Inclusion-2019.pdf). 

TowerBrook's office handbooks contain policies applicable to all team members that support diversity and equal opportunity, and prohibit discrimination based on age, gender, gender identity, sexual orientation, race, class, religion and national origin. TowerBrook provided training to all personnel on these policies in 2019 and will continue to provide training at least annually. We have committed our search partners to present (a) gender-balanced and diverse slates of candidates whenever possible, and (b) long-list candidates sanitised from gender-specific information.

Key performance indicator

          Training for investment teams and portfolio company management
        

Progress achieved

TowerBrook organizes periodic portfolio company manager roundtables and/or conference calls, at which ESG features as a topic for discussion (together with anti-bribery, cyber, diversity, etc.). TowerBrook holds trainings for its portfolio company managers in the US and Europe on a periodic basis, as well as a CEO event in connection with our annual meeting.

Key performance indicator

          Number of companies with a dedicated ESG Committee
        

Progress achieved

TowerBrook has implemented an initiative to ensure that all controlled portfolio companies have instituted the following formal policies: (i) Anti-Bribery, (ii) Code of Conduct, (iii) Corporate Governance and (iv) Health and Safety. In 2019, TowerBrook added (v) Anti-Harassment policies to this initiative. TowerBrook also seeks to ensure that each portfolio company has established a dedicated board Committee (for example ESG or CRS), or modified an existing governance committee, to (a) establish a corresponding charter that is bespoke to the language, culture and business of each company, (b) review the company's significant strategies, activities and policies regarding ESG (including labor practices) and community impact and charitable activities, and (c) make recommendations to the Board that focus on maximizing long-term, sustainable value creation. TowerBrook has frequent touch points with the boards of portfolio companies. ESG is an issue we raise explicitly in onboarding each portfolio chair and expect each chair to attend to, in partnership with TowerBrook, as a matter of providing effective governance. Portfolio company management would then engage with third parties (such as suppliers, developers, and contractors) to verify sound ESG practices.

Key performance indicator

          Consideration of ESG Markers at each initial discussion of an investment
        

Progress achieved

TowerBrook seeks to conduct robust reviews of potential ESG risks early in the investment process. TowerBrook has drafted and continuously evolves a list of ESG Markers, including, but not limited to, certain industries or countries that present heightened ESG risk and investor sensitivities. Investment professionals reviewing potential opportunities in such industries or connected to such countries, or which otherwise could reasonably pose material ESG risks, must discuss any such issues with TowerBrook's Transaction Committee at an early stage in the investment consideration process. Materiality of ESG factors is evaluated on a case-by-case basis.  TowerBrook revised its ESG Markers in March 2018.  

TowerBrook incorporates ESG factors into its investment playbook.  TowerBrook published a revised investment playbook in February 2020 which includes ESG screens, and additions regarding diversity and inclusion considerations into the investment process (with additions around governance diversity). TowerBrook also revised its Responsible Ownership Statement in 2019.

TowerBrook also seeks to engage with its preferred ESG consultants at an early stage in the investment consideration process to identify ESG-related risks and opportunities.

Financial performance of investments

ESG characteristics of investments

Other activities

Key performance indicator

          Industry and Conference Participation
        

Progress achieved

TowerBrook's senior team participates from time to time in industry conferences and panels focusing on responsible ownership and ESG issues. Participation by senior team members over the past few years includes the PEI Responsible Investment Forum, ILPA GP Summit, PRI in Person, the PrivCap Private Equity ESG Summit, the Bloomberg Sustainable Business Summit, the ESMT Conference on Sustainability Through Digital Innovation, and the Private Employee Ownership Leadership Summit. TowerBrook has also attended recent PRI events for asset managers in New York. 

Managing Director Christoph Lueneburger will join the BVCA Responsible Investment Advisory Group in Q2 2020.  The Group comprises investors, intermediaries and sustainability/responsible investment practitioners recognised for their excellence, experience, insight and ability to provide strategic guidance to the BVCA.

Key performance indicator

          Industry and Conference Participation
        

Progress achieved

TowerBrook is also an active member of the New York GP ESG Working Group, which seeks to develop best practice and collaboration amongst private equity GPs. TowerBrook partnered with other GPs in Q4 2019 to form the New York-based GP Diversity and Inclusion Working Group and the GP Carbon Footprint Working Group.

TowerBrook also partnered in Q1 2020 with the Wharton Social Impact Initiative (WSII) to collaborate to strengthen the Wharton and B Lab Research Collaboration.

Key performance indicator

          Case studies are featured in our annual Responsible Ownership Report
        

Progress achieved

TowerBrook highlights notable ESG-related initiatives of select portfolio companies in our annual Responsible Ownership Report.

See https://www.towerbrook.com/TowerBrook_Responsible_Ownership-2019.pdf

06.2. Additional information.


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