Post-Investment

Post-investment, we generally use an annual ESG survey and data collection process to monitor certain participating Portfolio Companies. We ask companies where we hold significant influence to participate in our survey and data collection. We use this data to calculate annual GHG emissions, allowing us to measure progress and focus our efforts on the largest opportunities for achieving savings within our portfolio. We also encourage Portfolio Companies to report to their respective boards regarding ESG on a regular basis, with respect to priority ESG topics that they deem to be material to their business.

Portfolio Company Engagement

Our Portfolio Operations Group and Asset Management teams seek to partner with participating Portfolio Companies. We help Portfolio Companies implement best practices through offering tools, training, and expertise; manage material ESG factors; implement specific initiatives; and measure progress.

We also have firm-wide programs in which applicable Portfolio Companies participate, including:

  • Our target to reduce carbon emissions of certain new Portfolio Companies acquired after January 1, 2021 where we control energy usage by 15% on average within the first three full calendar years of ownership (the Emissions Reduction Program); and
  • Resources to help Portfolio Companies broaden the pool of talent from which they recruit at all levels—including their boards—as well as how they develop and advance that talent.

As owners and operators, we seek to encourage and implement appropriate governance structures, policies, controls, and processes at our Portfolio Companies to strengthen them and thereby enhance returns.

For Portfolio Companies that are not controlled or otherwise not in scope, we provide access to firm-wide ESG programs, offering resources and expertise to support implementation and improvements where they can support value creation.

Focus Areas

Across our corporate and investment activities, we have identified priority ESG topics that we believe can most affect our ability to build strong companies of enduring value.

Climate Change Mitigation, Resiliency, and Adaptation

We recognize that climate change is a systemic issue, affecting all sectors and geographies. Our goal is to partner with in-scope Portfolio Companies across sectors to drive value through a range of strategic emissions reduction initiatives such as our Emissions Reduction Program. We also see energy transition as an attractive investment theme. Finally, over time we intend to assess physical and transition risks to certain Portfolio Companies from climate change, and develop resiliency responses to these risks, where applicable, as part of our investment process.

Diversity, Equity, and Inclusion

We aim to drive value by supporting our Portfolio Companies in the recruitment, development, and advancement of top talent at all levels from a broad range of talent networks. Our Career Pathways program was created in 2021 to help our Portfolio Companies access historically untapped talent pools and develop and advance that talent through a culture of inclusivity. We are also committed to hiring veterans and their spouses and caregivers across our Group and our Portfolio Companies.

Good Governance

We believe that good corporate governance is essential for financially sound companies. We support our Portfolio Companies at various stages of their life cycles to implement good governance practices spanning board governance to controls. Specifically, we prioritize an experienced, active, and engaged board of directors with the skill to properly oversee and direct management and encourage protocols to enhance transparency and good governance. Further, we provide governance training to our professionals serving on Portfolio Company boards and recommend Portfolio Companies provide regular board reporting on their ESG program.