Parnell, Auckland 1151, New Zealand
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Our corporate strategy policy is formed to ensure sustainable investments through beneficial engagement that safeguards the interests of the environment, the community, and the government.
Since 2011, we have endorsed the UN's Principles for Responsible Investment (PRI), and for the past four years, we have been given an A+ in both the Direct Private Equity Module and the Strategy and Governance Module. The Sustainability Report, which has been released annually since 2012, highlights the extensive Environmental, Social, and Governance (ESG) initiatives carried out at the portfolio companies of Covisory Holdings and the Covisory Holdings Funds.
Sustainability has been ingrained throughout the investment process at Covisory Holdings for well over a decade, and the company has an unwavering commitment to responsible investment. This commitment was inspired by the conviction that a responsible investment strategy can produce net benefits for society and the environment in addition to maximizing financial returns for investors.
By incorporating ESG factors broadly into all of our investment strategies and by providing dedicated equity and fixed income strategies that aim to achieve certain ESG-related outcomes, we reflect the aforementioned ESG beliefs.
A smarter economy, a healthier planet, diverse and inclusive communities, and a wider path to prosperity are all possible outcomes of the transformative power of technology, in our opinion.
We run businesses and long-term assets all over the world. Our investment strategy and dedication to environmental, social, and governance (ESG) practices are both determined by this methodology. Value creation and sustainable development, in our opinion, are related objectives. We adhere to procedures that benefit the communities where we operate throughout all aspects of our operations.
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The Covisory Holdings Buyout Funds' portfolio can be described as "asset light," and for many businesses, electricity use is the most important environmental indicator. Several of the portfolio companies' early adopters are creating comprehensive climate strategies by committing to Science-based targets or setting Carbon Neutral targets (such as Wehkamp and TietoEvry) (e.g. Thoughtworks). Additionally, a number of initiatives are in progress to reduce complexity, waste, and the consumption of natural resources, with a focus on waste reduction, reuse, and recycling in particular.
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Nearly 1,000+ people are employed by the portfolio companies of the Covisory Holdings Funds (both indirectly), and as a result, it is the portfolio companies' duty to ensure that procedures and practices are in place throughout the portfolio to support employee welfare. Covisory Holdings can identify key best practices and areas that need more attention by gathering a variety of indicators on the employee base and its wellbeing. The profile of inclusion and diversity at the Covisory Holdings portfolio companies is one of these subjects.
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According to Covisory Holdings, sound corporate management is built on good corporate governance. Almost all businesses have a code of conduct or code of ethics that serves as a guide for their operations. In the first year following an investment, portfolio companies that are new or have historically placed less emphasis on governance are actively encouraged to adopt the necessary codes and procedures.
The portfolio of Our Buyout Funds can be described as "asset light," and for many businesses, electricity use is the most important environmental indicator.
To support the wellbeing of the workforce, procedures and practices have been put in place across the portfolio.
Effective corporate management is built on good corporate governance and an ethics code that governs our business activities.
ESG factors are incorporated into our investment processes for risk management purposes. Using the following investment principles—target drivers of return supported by solid research—we first design our portfolios. When appropriate, diversify among issuers, industries, and nations; take into account daily price information; and methodically implement portfolios by carefully balancing expected returns, expenses, and risks.
Diversification is used in the approach described above to lower idiosyncratic risks, including risks related to ESG, but we also add a layer of ESG-specific risk management. For instance, because privately held businesses with significant strategic shareholders may not adequately represent the interests of all shareholders, we may choose to exclude them from our universe of eligible securities. We may also decide not to buy businesses where, based on available information, we think there is a higher risk of fraud or other actions that could render the financial statements of the business unreliable. Additionally, we monitor the news each day to find portfolio companies that are embroiled in disputes that could have a big effect on their bottom line, such as those involving social or environmental issues.
These businesses might have their purchases temporarily stopped, or they might be referred to our Stewardship team for engagement. These additional procedures, in our opinion, add yet another component to risk management that takes ESG factors into account.
Once we buy a security, our job as a client's investment advisor is not yet achieved. We believe that better governance practices may lead to higher realized returns through higher future cash flows to shareholders or a lower discount rate used by the market, which is why our Investment Stewardship team promotes best-in-class governance practices, including oversight of material ESG-related risks. Engagement, proxy voting, and involvement in trade shows and organizations are all part of our stewardship efforts. For more details on our active ownership activities, please refer to our Investment Stewardship Statement and Annual Stewardship Report.
We provide targeted sustainability and social strategies that incorporate ESG and also add more emphasis on ESG criteria by aiming for particular ESG outcomes. ESG factors are incorporated into these strategies' widely diversified, value-added systematic investment solutions through cutting-edge processes. Our track record managing sustainable and socially-screened strategies, which spans more than a decade since the launch of our first socially-screened strategy in 2009, serves as evidence of this.
To achieve an even better future, a smarter economy, a healthier planet, diverse and inclusive communities, and a wider path to prosperity, we believe that technology's transformative power is essential. We are aware of the chance and duty we have to use our business and investment choices to positively impact the world. Our commitment to generating value for all of our stakeholders and upholding the highest standards of integrity over the course of each investment is reflected in our environmental, social, and governance (ESG) policy. Covisory Holdings is dedicated to managing ESG factors in our portfolio of private equity. Our ESG policy is in line with the thorough Guidelines for Responsible Investing from the American Investment Council.
At Covisory Holdings, 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, Covisory Holdings Consulting Group (RCG) is actively involved in addressing potential ESG risks during the private equity investment process and within the Covisory Holdings firm. Our Compliance team provides oversight and ensures that employees at Covisory Holdings adhere to our ESG policy.
In order to reduce stakeholder risks and position our portfolio companies for sustainable growth and success, we integrate ESG analysis into our private equity investment process. RCG subject matter experts thoroughly examine the company's technology, cybersecurity, and data privacy practices prior to every deal and add-on acquisition. In order to evaluate potential ESG risks and opportunities, we also work with law firms and consulting firms. The investment committee is informed of all important findings.
Covisory Holdings keeps track of ESG performance and development over the course of each private equity investment after a deal has closed. Through ongoing discussions and written check-ins with Covisory Holdings portfolio company management and leadership, as well as board oversight during quarterly meetings, we make sure ESG measures are maintained.
Covisory Holdings is a signatory to the Principles for Responsible Investment (PRI), the largest reporting initiative on responsible investment in the world, which is supported by the UN. The PRI's blueprint for responsible investing prioritizes certain ESG issues through priority areas, from climate change to the obstacles to a more sustainable financial system, in order to foster inclusive and prosperous societies for future generations.
Our unrivaled expertise in the enterprise software market allows us to consistently fulfill our commitments to investors who have entrusted us with their futures by prioritizing ESG practices and policies.
Our ESG principles are ingrained in every aspect of our operations and aid us in making sure that our marketing strategy will endure for a very long time.
By 2050, net zero emissions of greenhouse gases (or "GHGs") should be the objective.
Covisory Holdings has grown into one of the largest private renewable energy companies in the world over the last 13 years. With 20 GW of installed renewable generating capacity, we currently produce enough green energy to power London, and once our development pipeline is brought online, that amount will more than double.
In order to quickly reduce the over 70% of global emissions that result from final energy consumption, additional renewable power capacity must be rapidly scaled up to replace fossil fuel generation and meet rising global electricity demand.
Our PRI commitments call for us to take ESG considerations into account when making investment decisions, from the due diligence stage of potential investments to the exit procedure. For important ESG considerations, we develop post-investment remediation plans and customize our ESG due diligence for each investment. We identify important ESG factors for all potential investments using internal experts and a range of ESG frameworks, and when necessary, we bring in outside consultants. This analysis covers all aspects of our portfolio, from ensuring environmental, legal, and regulatory compliance to identifying opportunities to add value or reduce risk. To ensure that significant ESG risks and opportunities are taken into account, our investment teams follow an ESG due diligence procedure.
In order to maintain investor confidence, we are constantly striving to uphold sound governance practices. This necessitates a continuous evaluation of how our strategy should account for changing laws, regulations, and best practices. For instance, we have a zero-tolerance policy for bribery, including the payment of facilitation fees, and all Covisory Holdings staff members are required to attend an annual comprehensive anti-bribery and corruption (ABC) training seminar. To report suspected unethical, illegal, or unsafe behavior, Covisory Holdings keeps an ethics hotline open.
This link will take you to the reporting website. Our reporting hotline is staffed round-the-clock, every day of the week by an impartial third party.
Our ABC policy, which mandates that portfolio companies set up an ethics hotline within six months of acquisition, is also mandatory for all portfolio companies in which we hold a controlling interest.
Covisory Holdings has formally pledged its continued commitment to ethical investing and the highest standards of environmental, social, and governance (ESG) by becoming a signatory to the Principles for Responsible Investment (PRI).
The PRI is one of the foremost advocates of responsible investing in the world. It places a strong emphasis on recognizing the financial implications of ESG factors and assisting a global network of investor signatories in incorporating these considerations into their ownership and investment decisions.
Businesses and investors can connect regarding the financial effects of sustainability through the Sustainability Accounting Standards Board (SASB). Businesses can identify, manage, and share financially significant sustainability information with investors thanks to SASB Standards.
Industry-specific SASB Standards are made to help investors make decisions.
They are created using an evidence-based and market-driven
HRH established The Prince's Accounting for Sustainability Project (A4S). The Prince of Wales in 2004 to encourage the financial and accounting community to take initiative and lead in addressing the challenges to the economy and society posed by problems like urbanization, inequality, and climate change.
A4S aims to motivate financial leaders to take decisive action to promote resilient business models and a sustainable economy.
BSR, a multinational nonprofit, collaborates with more than 250 member companies in its network and other partners to create a just and sustainable world. The nonprofit creates sustainable business strategies and solutions through consulting, research, and cross-sector cooperation from offices in Asia, Europe, and North America.
