Our ESG principles, which seek to integrate ESG considerations into our investment process, were developed based on the guidelines established by the UN Principles for Responsible Investment (UN PRI) and the American Investment Council’s Guidelines for Responsible Investing (GRI).
Centre performs a third-party diligence review of potentially material ESG topics for each new investment to simultaneously identify areas of risk that may affect the performance of the business and also detect opportunities to enhance the value of our businesses.
Priority ESG focus areas identified during due diligence are leveraged to establish relevant ESG metrics that, through established monitoring and reporting procedures, quantify the extent to which ESG standards are successfully being integrated across the portfolio.
It is important to Centre Partners that all employees are fully aligned with the firm’s Environmental, Social and Governance (ESG) principles. However, adherence to such principles is not linked to employees’ performance assessments and does not have any impact upon their remuneration.
Sustainability risk means an environmental, social or governance event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the investment (“Sustainability Risk”). Centre Partners’ criteria used to determine the remuneration level of employees does not take into account relevant Sustainability Risks. Sustainability Risk is treated in the same way as other risks which could cause a material negative impact on the value of a fund or portfolio. Generally, Centre Partners reward long term performance and promote among its employees (as is relevant to their role) a focus on financial sustainability.
Centre Partners do not currently consider the adverse impacts of investment decisions on sustainability factors within the meaning of the SFDR. Whilst ESG considerations are integrated into Centre Partners’ investment process, the detailed rules underlying the SFDR will require Centre Partners to ascertain the availability of the data expected to be reported under the new requirements of the SFDR. As such, the position will continue to be monitored and reviewed by Centre Partners as the underlying rules are finalised and market practice becomes apparent.