Once we intend to invest in a company, we use internationally-recognized tools and processes to conduct full due diligence and identify relevant ESG-related risks and opportunities. As an integrated component of our investment thesis, we build a consensus with other stakeholders around applicable ESG enhancements for each portfolio company.
We then partner with the portfolio company to address relevant issues, embed sustainable best practices, and advance ESG-focused initiatives that improve ESG performance over time. These include appointing ESG officers at the portfolio company, defining industry-relevant objectives, and establishing monitoring and accountability measures, among others. As we understand ESG’s relation to risk mitigation and operational excellence, these activities are a standard part of each portfolio company’s value creation plan.