• Responsibility

Responsibility

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Sydney, Australia

Our Approach to ESG

At Roc Partners, assessment of Environmental, Social and Governance (ESG) matters forms an integral part of our investment process.  We actively manage ESG considerations across our investment portfolio through ongoing engagement, support and monitoring processes which form part of our broader risk management and value creation framework.

Key Principles

ESG is not about negative screen

A coal miner could have a great ESG record and management, but could be ineligible due to the fund or client mandates negative screen.

On the flipside, a company could have poor ESG management, but if Roc forms the view that the risks are acceptable and could be mitigated, Roc would see this as an opportunity to improve ESG and to make a positive impact.

ESG is about mitigating downside risks

Compliance related and satisfying all legal requirements and regulations to avoid fines or losing the permit to operate:

  • Employment & Pay
  • WH&S
  • Environmental
  • Permits & License

Non-compliance related but achieving industry-specific social expectations to avoid losing the social license to operate:

 

  • RSPCA standards
  • Investing in energy efficiency
  • Workforce diversity and fairness

ESG is about capturing value creation opportunities

  • Customer satisfaction
  • Operational efficiency
  • Brand equity
  • Workforce strength and harmony
  • Business resilience and sustainability

Our Key Competences

  • Our people are our greatest strength. Roc Partners has a highly inclusive corporate culture and effective incentive schemes to ensure we attract and retain superior talent and all team members are focused achieving the same goals.
  • Proven investment process overlaid with a robust governance framework that continues to evolve to ensure it remains relevant and effectual.
  • Extensive diligence and investment research, taking time to ensure we understand, among other key considerations, ESG related risks and opportunities to ensure we remain at the forefront of key developments in this area.
  • Long-term, trusted relationships with clients, general partners, and advisers built over two decades investing in the Asia Pacific region.
Investment Category Description Standard

Direct Investments
(Most ability to influence)

Roc makes an investment directly into a company and has most ability to influence deal terms, Board composition, company strategy and operations.

Roc plays a highly active role both pre and post investment to improve a company’s ESG performance.

Roc is ultimately accountable for ESG due diligence, ESG strategy and implementation, and ESG reporting.

Co-investments
(Limited ability to influence)

Roc makes an investment directly or indirectly into a company, but generally has limited ability to influence deal terms, Board composition, strategy and operations.

Roc does not invest in companies with high ESG risks that cannot be mitigated.

Pre-investment, Roc plays an active role in due diligence to understand and potentially shape the GP’s ESG policy, standards and reporting.

Post-investment, Roc recognises it has limited ability to influence ESG strategy and implementation and reporting, unless Roc sits on the board.

Primary & Secondary Investments
(Least ability to influence)

Roc makes an investment into a fund that is managed by a third-party fund manager.

Ability to influence generally limited and depends on Roc’s investment as a % of the fund and Roc’s relationship with the GP.

Roc does not invest in funds that do not meet Roc’s ESG standards.

Pre-investment, Roc plays an active role in due diligence to understand and potentially shape the GP’s ESG policy, standards and reporting.

For secondary ESG assessment should be highly prioritised (i.e. companies in high ESG risk industries).

Post-investment, Roc would monitor at a fund level and generally has limited ability to influence at the company level.

Our Investment Process

Roc Partners’ investment process is about quality investment selection, risk mitigation and sustainable value creation through active ownership.  We incorporate ESG considerations into our investment decisions and take a practical approach to integration including regularly engaging with our General Partners and companies to drive optimal ESG outcomes across our portfolio.

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