ESG integration
Our overarching approach to ESG integration is guided by the six principles of the PRI framework[1] which are integrated into our investment process as illustrated below.
Explicit consideration of ESG risks and opportunities in screening, due diligence, closing and monitoring of investments
2 & 3
Monitoring of fund managers' ESG performance and active engagement on ESG integration
Stafford is actively involved in different investor initiatives on responsible investment and promotes ESG principles at conferences and industry events
Stafford shares best ESG practices with fund managers in its portfolios, with its clients and within industry initiatives
Stafford reports annually to the PRI, publishes Stafford Sustainable Diaries and an annual Responsible Investment Report
Stafford’s Sustainability Committee is entrusted with overseeing the implementation of our Responsible Investment Policy and has a direct link to both the Executive Management Board and the Investment Committee of each business line. A dedicated ESG Director chairs the Committee and coordinates ESG activities across service lines.
PRI 1 - Integrate ESG criteria
Stafford believes that good ESG management may lead to enhanced long-term financial returns, better investment decisions and a closer alignment of objectives among investors, stakeholders, and society at large. Therefore, we integrate ESG considerations in all stages of our investment process. This means that we assess the sustainability risks which could have an actual or potential material negative impact on the value of our investments before and after our investment decisions have been made. In addition, we assess the potential negative impacts of our investment decisions and the impacts of underlying assets and investee companies on environmental, social and employee matters, respect for human rights, anti-corruption, and anti-bribery matters.
Analysis of manager attitude and approach towards ESG integration forms an integral part of due diligence process of external managers. In addition, Stafford’s investment teams assess ESG risks and opportunities facing each asset, ESG related incidents, contribution to SDGs, alignment to Stafford’s RI policy and Fund objectives during the due diligence process.
Through ongoing monitoring and continuous dialogue Stafford promotes ESG integration among external managers. The annual ESG survey of managers’ ESG-related activities provides valuable insights for our engagement with the managers.
PRI 2 & 3 - Be an active owner & seek ESG disclosure
We are working closely with the managers to identify the material sustainability risks and potential adverse impacts prior to investment. We look to improve any negative sustainability risks and impact that may exist or develop post-investment by working in conjunction with fund managers and portfolio company management teams.
PRI 4 - Promote the PRI
View some of our Sustainability Collaborations on the Stafford Capital Partners website.
PRI 5 - Share best practices
Download the our ESG engagement report from the sustainable publications page of the Stafford Capital Partners website.
PRI 6 - Report on progress
Visit the Stafford Capital Partners website to see our sustainability publications.
[1] More on the six principles can be found here: https://www.unpri.org/pri/what-are-the-principles-for-responsible-investment
Download Stafford Responsible Investment Policy (PDF).