Beneficial engagement that preserve the interest of the environment, the community and the government are formed in our corporate strategy policy to ensure sustainable investments.
RSF holdings have an unwavering commitment to responsible investment and sustainability has been embedded throughout the investment process for well over a decade. This commitment has been formed by the conviction that a responsible investment strategy not only supports maximised economic returns for investors but can also deliver a net benefit for society and the environment.
We are signatories to the UN’s Principles for Responsible Investment (PRI) since 2011 and have received an A+ rating in both the Strategy and Governance Module and the Direct Private Equity Module for the past four years. Published annually since 2012, the Sustainability Report highlights the wide-ranging Environmental, Social, and Governance (ESG) initiatives undertaken at RSF holdings and the RSF holdings Funds’ portfolio companies.
We reflect the above beliefs about ESG by integrating ESG considerations broadly across our investment strategies as well as by offering dedicated equity and fixed income strategies that seek to accomplish specific ESG-related outcomes
Our Buyout Funds’ portfolio can be qualified as ‘asset light’ and the most material environmental indicator for many companies is electricity usage.
processes and practices are in place across the portfolio to support the wellbeing of the workforce.
good corporate governance and a code of ethics which guides our business activities is the foundation of effective corporate management.
While the above approach uses diversification to reduce idiosyncratic risks, including ESG-related risks, we also apply an additional layer of ESG-specific risk management. For instance, we may exclude closely-held companies from our universe of eligible securities, since companies with large strategic shareholders may not represent the interests of a broad set of shareholders. We may also choose not to purchase companies where, based on public information, we believe there is a heightened concern of fraudulent or other behavior or situations that may make company financial statements no longer reliable. We also conduct daily news checks to identify portfolio companies involved with controversies, including with respect to environmental or social issues, that may have a significant impact on company financials. These companies may be placed on temporary halt from further purchases and/or referred to our Stewardship team for engagement. We believe these additional processes provide another element of risk management that incorporates ESG considerations.
We believe the transformative power of technology is the key to an even better future
– a
smarter economy, a healthier planet, diverse and inclusive communities,
and a broader path
to prosperity.
We operate long-term assets and businesses across the globe. This approach dictates both our investment strategy and our commitment to environmental, social and governance (ESG) practices. We believe that value creation and sustainable development are complementary goals. Throughout our operations, we are committed to practices that have a positive impact on the communities in which we operate.
W
e support the goal of net zero greenhouse gas (‘GHG’) emissions by 2050.
Over the past 13 years, RSF has built one of the largest private renewable power businesses
in the world. With installed renewable generating capacity of 20 GW, we now produce more
than enough green energy to power London and will more than double that amount once our
development portfolio is brought online.
We recognize that further renewable power capacity must be rapidly scaled to replace fossil
fuel generation and meet expanding global electricity demand so that the world can eliminate
the over 70% of global emissions that come from final energy consumption as quickly as
possible.
In addition to continuing to make major investments in renewable energy globally, we will manage our investments to be consistent with the transition to a net zero economy. As a recent signatory to the Net Zero Asset Managers initiative, we have made a commitment to investing aligned with net zero emissions by 2050 and implementation of science based approaches and standardized methodologies through which to deliver these commitments.
We will work with leading private sector initiatives to advance the role of finance in supporting the economy-wide transition, to accelerate capital flows consistent with the Paris Agreement, and to promote widespread adoption of decision-useful methodologies to support credible transition planning, analysis and investing.
We will continue to pursue industry-leading returns for our investors, consistent with our long track record of building the backbone of a more sustainable global economy.
We will track and report GHG emissions consistent with GHG Protocol and PCAF standards. We will publish decarbonization plans every five years consistent with the Paris Agreement.
We continue to align our business with the TCFD recommendations and are targeting to incorporate TCFD disclosures for the 2022 fiscal year.
RSF is a signatory to the Net Zero Asset Managers initiative, underscoring our long-standing commitment to driving the complementary goals of sustainability and value creation across our investments and operations. The Net Zero Asset Managers initiative is a group of international asset managers committed to supporting the goal of net zero greenhouse gas emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5 degrees Celsius; and to supporting investing aligned with net zero emissions by 2050 or sooner.
RSF is a signatory of the Principles for Responsible Investment (PRI), formally demonstrating our ongoing commitment to responsible investment and environmental, social and governance (ESG) best practices. The PRI is one the world’s leading proponents of responsible investing, with an emphasis on understanding the investment implications of ESG factors and supporting an international network of investor signatories in incorporating these factors into their investment and ownership decisions.
The Sustainability Accounting Standards Board (SASB) connects businesses and investors on the financial impacts of sustainability. SASB Standards enable businesses to identify, manage, and communicate financially material sustainability information to investors. SASB Standards are industry-specific and are designed to be decision-useful for investors. They are developed using a process that is evidence based and market informed.
The Prince’s Accounting for Sustainability Project (A4S) was established by HRH The Prince of Wales in 2004 to mobilize action and leadership by the finance and accounting community to address the challenges to the economy and society posed by issues such as climate change, increasing depletion of and demand for natural resources, urbanization and inequality. A4S seeks to inspire action by finance leaders to drive a fundamental shift towards resilient business models and a sustainable economy.
A global nonprofit organization, BSR works with its network of more than 250 member companies and other partners to build a just and sustainable world. From its offices in Asia, Europe, and North America, the nonprofit develops sustainable business strategies and solutions through consulting, research, and cross-sector collaboration.
Our PRI commitments include
incorporating ESG factors into our investment decisions, starting with the due diligence of
potential investments through to the exit process. We tailor ESG due diligence to each
investment, and we create post-investment remediation plans for material ESG considerations.
For all potential investments, we use internal experts and a variety of ESG frameworks to
identify material ESG factors and utilize external consultants where appropriate. This
analysis includes everything from ensuring environmental, legal and regulatory compliance to
the identification of opportunities to add value or mitigate risk in our portfolio. Our
investment teams use an ESG due diligence guideline to ensure consideration of material ESG
risks and opportunities. These teams then provide a detailed memorandum to the Investment
Committee outlining the merits of the transaction and disclosures relating to risks,
including material ESG issues, and potential mitigation strategies. All investments made by
RSF must be approved by the Investment Committee and must incorporate ESG matters into their
evaluation, including anti-bribery and corruption, health and safety, and other ESG
considerations.
Upon company acquisition, we create a tailored integration plan to ensure that all material matters, including ESG risks and opportunities are prioritized. ESG risks and opportunities are actively managed by the portfolio companies with guidance from our in-house investment teams, primarily through representation on company boards and equivalent oversight bodies where all financial, operational, and strategic elements of the business are reported, considered, and where appropriate, approved. This allows us to draw on local expertise, which provides valuable insight given the wide range of asset types and locations in which we invest. Certain key performance indicators, such as serious safety incidents, are reported regularly to the applicable board or other oversight body.
We are always working to maintain sound governance practices to ensure ongoing investor confidence. This involves a continual review of how evolving legislation, guidelines and best practices should be reflected in our approach. For example, we have a zero-tolerance approach to bribery, including facilitation payments, and all RSF employees are mandated to complete an in-depth anti-bribery and corruption (ABC) training seminar annually. RSF maintains an ethics hotline to report suspected unethical, illegal or unsafe behavior. The reporting website can be accessed through this link. Our reporting hotline is managed by an independent third party and is available 24 hours a day, 7 days a week. We also require all portfolio companies in which we have a controlling interest to adopt an ABC policy that is equally stringent to RSF’s, which entails that portfolio companies install an ethics hotline within six months of acquisition.
Employee health and safety is a top priority at RSF. We view health and safety as an integral part of the management of our business and therefore consider it a line responsibility best managed by portfolio companies. We have established a safety steering committee, which includes the CEOs and COOs of each business group, to promote common values and a strong health and safety culture, share best practices and monitor serious safety incidents.
Embedded in our culture is a commitment to advancing diversity and inclusion across our organization. This begins at recruitment, continues in leadership training programs and is woven into our policies and procedures. As a global firm, we know that the best ideas come from having people from different backgrounds, perspectives, experiences and skills across all businesses, levels of seniority and offices.
Training programs set clear expectations for our leaders in terms of their role in helping all team members achieve their potential. The training emphasizes building trust with their teams, becoming aware of unconscious biases and provides guidance on how to add rigor to decision-making especially in recruiting, performance feedback and promotion, with the goal of creating a more diverse and inclusive environment.
Developing properties that take environmental considerations into account is not only a passion, it provides returns on our investments. That’s why 100% of our new developments are being built according to LEED® Gold standards, to proactively address greenhouse gas emissions, energy efficiency, water use, indoor air quality, and other impacts.
We recognize that activities that support growth and development include involvement in interests outside of day-to-day employment activities. We view our philanthropic activities as an opportunity to engage our people, support their development and be of benefit to the local communities in which we operate.
Our two-pronged global approach includes a global matching program that provides each employee the ability to donate to a not-for-profit of their choice and receive a match from the Firm as well as a capital pool for each office to support philanthropic activities that are important to our people and facilitate relationship building in support of collaboration.
Putting ESG thinking at the heart of your investment process
Designed to help you make sound, sustainable investment decisions, our ESG investing information covers 80% of global market cap and 76 countries over 450 metrics.
It helps you assess the risks – and opportunities – posed by companies’ performance in critical areas such as climate change, executive remuneration, and diversity and inclusion.
You can carry out your ESG research with complete confidence because every data point is rigorously quality controlled and verified to ensure that it is standardized, comparable and reliable.
Our Fund ESG Scores provide you with independent fund level scores highlighting the sustainability of particular investment funds.
As well as ESG data and scores, we offer sustainable bond information to help assess sustainable Fixed Income strategies and investments
Firms can use our ESG Contributor Tool to upload ESG data to the Refinitiv ESG database to ensure thousands of investors are able to retrieve the full view of a company
With our standardized ESG data points (450+) and analytics (70+) – for nearly 80% of global market cap based on publicly reported company data and 210 countries – we strive to be the industry standard database that reflects official company disclosure on environmental, social, and governance (ESG) metrics.
We believe that company disclosure and standards of reporting on these issues is critical for driving accurate investor information, public discourse, regulatory guidance.
We also believe that transparency is critical to driving positive outcomes at both a financial and social level.
To this end – for the purposes of company scoring – we do not use, create, or collect data that is not disclosed or publicly available.
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