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.
Environmental Highlights
The RSF holdings Buyout Funds’ portfolio can be qualified as ‘asset light’ and the most
material environmental indicator for many companies is electricity usage. Several early
movers among the portfolio companies are developing detailed climate strategies by setting
Carbon Neutral targets (e.g. Wehkamp and TietoEvry) or committing to Science-based targets
(e.g. Thoughtworks). There are also several initiatives underway to reduce complexity, waste
and natural resource consumption,, focusing on waste reduction, reuse and recycling in
particular.
Social Highlights
The RSF holdings Funds’ portfolio companies employ almost 1,000+ people (both indirectly)
and with this comes a responsibility to ensure that processes and practices are in place
across the portfolio to support the well being of the workforce. Through collecting multiple
indicators on the employee base and its wellbeing, RSF holdings is able to highlight key
best practices and also areas where more focus is required. One of these topics is the
inclusion and diversity profile of the RSF holdings portfolio companies.
Governance Highlights
RSF holdings believes that good corporate governance is the foundation of effective
corporate management. Virtually all companies have a code of conduct and/or a code of ethics
which guides their business activities. Portfolio companies that are new or which have
historically had less focus on governance are actively encouraged to adopt appropriate codes
and processes within the first year of investment.
Investment processes and strategies
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
ESG
Integration
Active
Ownership
Targeted
ESG strategies
Environment
Our Buyout Funds’ portfolio can be qualified as ‘asset light’
and the most material environmental indicator for many
companies is electricity usage.
Social
processes and practices are in place across the portfolio to
support the wellbeing of the workforce.
Governance
good corporate governance and a code of ethics which guides
our business activities is the foundation of effective
corporate management.
Our investment processes integrate ESG considerations for risk management purposes. We start
by designing our portfolios using the following investment principles:
target drivers of return supported by robust research;
diversify across issuers, sectors and countries where applicable;
consider information on prices every day; and
systematically implement portfolios by thoughtfully balancing expected returns,
costs and risks.
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.
Active Ownership
Our role as investment advisors for clients does not end once we invest in a security.
Rather, our Investment Stewardship team advocates for best-in-class governance practices,
including oversight of material ESG-related risks, as we believe that improved governance
practices may result in higher realized returns through higher future cash flows to
shareholders or a lower discount rate applied by the market. Our stewardship efforts include
engagement, proxy voting, and participation in industry events and organizations. See our
Investment Stewardship Statement and Annual Stewardship Report for more information on our
active ownership activities.
Targeted ESG strategies
We offer targeted sustainability and social strategies that use ESG integration and also add
a greater level of focus on ESG criteria by pursuing specific ESG outcomes. These strategies
use innovative processes to incorporate ESG considerations into broadly diversified,
value-added systematic investment solutions. This is demonstrated by our track record
managing sustainable and socially-screened strategies, now covering over a decade since the
launch of our first socially-screened strategy in 2009.
Environmental, Social and Governance Objectives
Firm Level
Investment Level
Environmental Objectives
Increase the use of employee alternative transportation and decrease our scope 3
emissions:
Providing employees a monthly subsidy on commuting passes for public
transportation
Publicize links of local transit opportunities
Reduce or eliminate the production of waste:
Installing water dispensers and providing all employees with reusable water
bottles
Removing plastic water bottles from the office
Limiting single serve paper or plastic cups
Reduce or eliminate the use of paper products by:
Promoting recycling
Printing double-sided reports and presentations
Minimizing printed materials by focusing on using electronic copies of reports
and presentations
Social Objectives
Encourage employee involvement and open communication through the deployment of our
annual employee survey, regular trainings (including ESG topics), career development
programs, and annual employee performance reviews
Facilitate better employee health and well-being through improved indoor air quality,
adding handicap accessibility, and by promoting additional health and wellness
strategies at our offices
Foster community engagement at RSF through the development and support of
charitable programs by:
Implementing casual dress Fridays for employees who donate $10 each month
Encouraging employees to submit charity events for firm sponsorship and to
attend charity events including:
School on Wheels Massachusetts Outrunning Homelessness
Corey C. Griffin Charitable Foundation
FamilyAid Boston
United Way of Massachusetts Bay and Merrimack Valley
National Brain Tumor Society
Collaborate with our joint venture partners on implementing, tracking, and reporting
our ESG initiatives
Facilitate diversity education, training, communication, and collaboration to utilize
the full potential of each employee
Partnered with ThinkHR to conduct anti-harassment training for all employees
Offer online diversity education and training for employees
Address the information needs of our key stakeholders and communicate with them on
information including environmental, social, and corporate governance issues
Promote diversity and inclusion at our company by continuing to be an equal
opportunity employer
Partnered with OppNet’s Opportunity Ignited Corporate Solutions and formed a
summer internship program to hire from their diverse internship candidate pool
to increase and develop the awareness of BIPOC talent at RSF
Founding Sponsor of the PREA Foundation and active member of AFIRE and ULI, all
organizations focused on increasing diversity and inclusion in the institutional
real estate industry
Governance Objectives
Regularly convene with our ESG Taskforce to discuss the goals, strategy, and
management of our ESG Program
Align our program with sustainability reporting frameworks such as GRESB to improve
overall ESG performance and increase transparency
Continue to participate in industry organizations and associations designed to
facilitate communication, transparency, and the sharing of knowledge, consistent
with ILPA reporting guidelines
Distribute quarterly and annual reports to Limited Partners and include ESG
updates
Hold annual investor meetings for all active funds (including Advisory Board
meetings) to ensure transparent communication
Seek to use governance structures that provide appropriate levels of oversight in the
areas of audit, risk management, and potential conflicts of interest
Continue to exceed or comply with all national, state, and local labor laws and
regulation standards
Environmental Objectives
Evaluate and implement best practices and low-cost sustainability initiatives to
increase the efficiency of our real estate portfolio across both our existing and
development properties
If applicable, pursue ENERGY STAR certification for eligible buildings annually
Assess feasibility and strategically achieve third-party green building
certifications such as LEED, BREEAM, IREM CSP, Green Key, Green Globes, and
NGBS
Social Objectives
Empower our asset managers and third-party property managers by providing
sustainability preferred practices and resources
Encourage our tenants to participate in our ESG program by providing
educational materials, hosting events, and implementing green lease
language
Educate asset managers and our third-party property managers on environmental,
social, governance, and health and well-being issues
Evaluate health and wellness certifications and ratings such as WELL and Fitwel
Governance Objectives
Evaluate ESG as part of the due diligence process during acquisition by identifying
risks and opportunities regarding benchmarking ordinance compliance, resilience
risks, green building certifications, energy and water efficiency initiatives, and
other ESG-related topics
Engage a third party ESG consultant to perform an ESG assessment on all new
investments
Ensure our assets comply with local jurisdiction benchmarking requirements and any
additional policy or regulatory changes
Monitor property and portfolio performance on a regular basis through a formalized
reporting process
Environmental, Social and Governance Practices
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.
Our Commitment to Stakeholders
We recognize the opportunity and responsibility we have to make a positive impact on the
world through our business and investment decisions. Our environmental, social and
governance (ESG) policy reflects our commitment to creating value for all of our
stakeholders and adhering to the highest standards of integrity throughout the lifecycle of
each investment.
ESG Policy
RSF is committed to ESG management in our private equity portfolio. We’ve aligned our ESG
policy with the American Investment Council’s comprehensive Guidelines for Responsible
Investing . We regularly revisit and update our ESG Policy to ensure that it evolves with
changes in industry demands and regulations.
Guiding Principles
Wellness and Safety: Ensure proper labor and working conditions to safeguard
the health and safety of RSF employees and employees at RSF portfolio companies.
Inclusivity: Encourage a culture of meritocracy, fairness and transparency.
Trust and Responsibility: Promote honesty, integrity, fairness and respect in
all of our business practices.
Privacy and Cybersecurity: Protect the privacy of confidential consumer and
corporate information through our own operations and those of RSF portfolio
companies.
Transparency: Provide stakeholders with clear, transparent information
regarding ESG risks
Protecting Our Planet: Ensure and continuously improve the environmental
responsibility and energy efficiency of our firm and our portfolio companies.
Social and Community Empowerment: Promote the development of our communities
and use our position as a community leader to provide charitable contributions, with
a focus on job training and opportunity, access to education, supporting the arts
and culture, and protecting our health and environment.
Broad Accountability
At RSF, we foster ESG understanding and accountability throughout the firm. Our investment
professionals are responsible for managing and instilling the guiding principles of our ESG
policy across our portfolio companies. In addition, RSF Consulting Group (RCG) is actively
involved in addressing potential ESG risks during the private equity investment process and
within the RSF firm. Our Compliance team provides oversight and ensures that employees at
RSF adhere to our ESG policy.
Responsibility: From Sourcing to Exit
We incorporate ESG analysis into our private equity investment process to limit stakeholder
risks and position our portfolio companies for sustainable growth and success. Before every
deal and add-on acquisition, RCG subject matter experts conduct an in-depth review of the
company’s technology, cybersecurity and data privacy practices. Additionally, we engage law
firms and consulting firms to assess potential ESG risks and opportunities. All material
findings are communicated to the investment committee.
After a deal has closed, RSF continues to monitor ESG performance and progress throughout
the life of each private equity investment. We ensure ESG measures are maintained through
regular conversations and documented check-ins with RSF portfolio company management and
leadership, as well as board oversight during quarterly meetings.
Our Commitment to Investors
We advance the market impact of RSF portfolio companies while safeguarding stakeholder
interests.
WELLNESS AND SAFETY
Ensure proper labor and working conditions to safeguard the health and safety of RSF
employees and employees at RSF portfolio companies.
INCLUSIVITY
Encourage a culture of meritocracy, fairness and transparency.
TRUST AND RESPONSIBILITY
Promote honesty, integrity, fairness and respect in all of our business practices.
PRIVACY AND CYBERSECURITY
Protect the privacy of confidential consumer and corporate information through our own
operations and those of RSF portfolio companies.
TRANSPARENCY
Provide stakeholders with clear, transparent information regarding ESG risks.
PROTECTING OUR PLANET
Ensure and continuously improve the environmental responsibility and energy efficiency of
our firm and our portfolio companies.
SOCIAL AND COMMUNITY EMPOWERMENT
Promote the development of our communities and use our position as a community leader to
provide charitable contributions, with a focus on job training and opportunity, access to
education, supporting the arts and culture, and protecting our health and environment.
Principles for Responsible Investment
RSF is a signatory of the United Nations-supported Principles for Responsible Investment
(PRI), the world's largest reporting project on responsible investment. Through priority
areas, PRI's blueprint for responsible investing prioritizes some of the most pressing ESG
issues in the world today - from climate change to the barriers around a more sustainable
financial system - leading to prosperous and inclusive societies for future generations.
Serving a Broader Purpose
By prioritizing ESG practices and policies, our unmatched experience investing in the
enterprise software market enables us to consistently deliver on our commitments to
investors who have entrusted us with their futures.
ESG OVERVIEW
ENVIRONMENTAL PRACTICES
Driving positive change throughout our global economy.
SOCIAL ENGAGEMENT
Creating equitable opportunities that strengthen our shared workforce.
GOVERNANCE STRATEGY
Delivering a modern structure for responsible leadership at scale.
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.
Our ESG principles are embedded throughout our operations and help us ensure that our
business model will be sustainable well into the future.
Mitigate the impact of our operations on the environment:
Strive to minimize the environmental impact of our operations and improve our
efficient use of resources over time.
Support the goal of net zero greenhouse gas (GHG) emissions by 2050 or sooner.
Mitigate the impact of our operations on the environment:
Strive to minimize the environmental impact of our operations and improve our
efficient use of resources over time.
Support the goal of net zero greenhouse gas (GHG) emissions by 2050 or sooner.
Ensure the well-being and safety of employees:
Foster a positive work environment based on respect for human rights, valuing
diversity, and zero tolerance for workplace discrimination, violence or harassment.
Operate with leading health and safety practices to support the goal of zero serious
safety incidents.
Ensure the well-being and safety of employees:
Foster a positive work environment based on respect for human rights, valuing
diversity, and zero tolerance for workplace discrimination, violence or harassment.
Operate with leading health and safety practices to support the goal of zero serious
safety incidents.
Uphold strong governance practices:
Operate to the highest ethical standards by conducting business activities in
accordance with our Code of Business Conduct and Ethics.
SMaintain strong stakeholder relationships through transparency and active
engagement.
Uphold strong governance practices:
Operate to the highest ethical standards by conducting business activities in
accordance with our Code of Business Conduct and Ethics.
SMaintain strong stakeholder relationships through transparency and active
engagement.
Be good corporate citizens:
Ensure the interests, safety and well-being of the communities in which we operate
are integrated into our business decisions.
Support philanthropy and volunteerism by our employees.
Be good corporate citizens:
Ensure the interests, safety and well-being of the communities in which we operate
are integrated into our business decisions.
Support philanthropy and volunteerism by our employees.
RSF's Net Zero Commitment
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.
RSF intends to build on this leading position in renewable power and do much
more to contribute to the transition to net zero
We will go further
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 help accelerate the transition
to Net Zero
We will catalyze companies onto Paris-aligned net zero
pathways through our new Global Transition investment
strategy, focusing specifically on investments that will
accelerate the transition to a net zero carbon economy.
We will collaborate
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 continue to pursue industry-leading returns
“
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 are committed to transparency
“
We continue to align our business with the TCFD recommendations and
are targeting to incorporate TCFD disclosures for the 2022 fiscal
year.
Alignment
Net Zero Asset Managers Initiative
ESG Frameworks and Memberships
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.
Integrating ESG considerations into our investment process
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.
A strong governance framework
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.
Health and safety in our portfolio companies
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.
Fostering diversity & inclusion
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.
Traning and Man power development
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.
Women make up
46%
of total employees
55%
of independent board directors
30%
of vice presidents and above
A commitment to green buildings
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.
$17B
Aggregate value of our green financings in Renewable Power, Real Estate, Infrastructure and Private Equity
Sustainable finance
RSF strives to be a leader in sustainable finance products, which support adaptation to global climate change challenges.
Community engagement and philanthropy
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.
Mitigate risks. Improve returns
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
Our approach to ESG data
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.
As such, we can create a complete line of auditability all the way from documents (such as annual reports), to the company data points in our database, to company scores, to fund ratings which are based on robust fund holdings data.