• Responsibility

Responsibility

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Sydney, Australia

Our beliefs

Responsible investing is about creating value for stakeholders

Responsible investing is an opportunity for us to create long term stakeholder value by improving overall business performance and resilience.

 

For example, a company that offers products and services that are aligned with consumers social and / or environmental expectations may be able to attract and retain new customers and grow earnings faster than its competitors. Equally, a company that understands climate risk and has built a portfolio of assets that are climate change benefactors will be more resilient to change and more attractive to future investors.

Responsible investing is about driving positive change

Responsible investing is not about negative screening (deeming investments ineligible based on pre-defined criteria) but about using our ownership to influence and drive positive change.

 

For example, a company may initially have poor ESG practices however under our ownership we could improve these practices and have a positive impact on the company, its employees and the entire industry.

 

Responsible investing is about mitigating downside risks

Responsible investing ensures that we identify, monitor and manage ESG related risks and issues to mitigate any downside risk to investment performance.

 

For example, by identifying and managing compliance / regulatory focused ESG risks (e.g. permits, licenses, WHS) we are ensuring that all the company’s legal and regulatory requirements are satisfied. ‘Non-compliance’ focused ESG risks (e.g. energy efficiency guidelines, RSPCA standards) are equally important as they represent the emerging social expectations and in many cases are the leading indicators of future regulatory requirements.

Our approach

We take an active management approach to responsible investing including extensive due diligence followed by ongoing monitoring, support and engagement.

 

In practice, our approach ultimately depends on the type of investment we are making as our level of influence and control varies.

Investment Category Description Standard

Direct Investments
(Most ability to influence)

We make an investment directly into a company and have the ability to influence deal terms, board composition, company strategy and operations.

We play a highly active role both pre- and post-investment to improve a company’s overall ESG performance.

We are ultimately accountable for all ESG due diligence, strategy,  implementation and reporting.

Co-investments
(Limited ability to influence)

We make an investment directly or indirectly into a company, but generally have limited ability to influence deal terms, board composition, strategy and operations.

Pre-investment, we play an active role in due diligence to understand and influence the manager’s approach to ESG standards and reporting.

Post-investment, we often have limited ability to influence ESG strategy, implementation and reporting, unless we sit on the board alongside the manager.

Primary & Secondary Investments
(Least ability to influence)

We make an investment into a fund that is managed by an external manager.

Our influence is generally limited and depends on our investment as a percentage of the fund and the strength of our relationship with the manager

Pre-investment, we play an active role in due diligence to understand and potentially influence the manager’s ESG policy, standards and reporting.

Post-investment, we have limited ability to further influence the manager’s ESG policy and instead focus on policy adherence and reporting.

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If you're a sophisticated / institutional investor, a business seeking capital or an advisor with an opportunity you would like to discuss, please contact our team today.

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