ESG

Environmental, Social and Governance (ESG)

As global investors, we have a duty to the world and the people around us. To deliver on this, we have built the ability to assess ESG risks throughout the investment lifecycle. Equiflux Capital Group sees responsible investment as fundamental to its business – key to delivering long-term investment performance for our investors. We therefore integrate environmental, social and governance (ESG) factors into all stages of our investment process.
Equiflux Capital Group has a longstanding commitment to fostering strong ESG performance as a firm and in our investment practices. Therefore we apply Equiflux’s own values of Partnership, Integrity and Creativity to everything that we do, including our approach to responsible investment.

Our values-based investing approach aim to help investment teams to identify ESG risks during the due diligence process, through early review and analysis of sub-sectors which may have a higher ESG risk profile. For our Buyout funds, the values-based investing approach also plays an important role in determining ESG risks and opportunities to facilitate decisions on which companies the funds will and won’t invest in. Understanding the key levers that drive business improvement, including ESG considerations, is at the heart of our investment approach for our Buyout funds. From the very beginning, we are committed to actively engaging with portfolio company management teams as they seek to address material risks and realize value creation opportunities relating to ESG and sustainability. We believe that having a well-defined, responsible and proactive approach to ESG can positively drive the performance and success of our portfolio companies and position them for a sustainable future long after our exit. We are active in multiple industry-wide ESG and sustainability initiatives. We also encourage and support relevant portfolio companies in following this lead.

Equiflux Capital Group first adopted a Global ESG Performance Policy in 2012 after it announced its commitment to reach Net Zero greenhouse gas emissions for the entirety of our global operations and assets under management by 2050 or sooner. Equiflux Capital Group became a signatory to the UN Principles of Responsible Investment in 2013. Each year, we continue to strengthen and deepen the integration of ESG performance throughout the firm.

Equiflux Capital Group has been a CarbonNeutral® Company since 2018. Working with Natural Capital Partners, experts on carbon neutrality and climate finance, we calculate the firm’s annual carbon footprint from our operations and business travel. We are working to reduce our carbon footprint and any remaining emissions are offset annually with certified carbon credits. The carbon footprint and offset process is undertaken using the rigorous CarbonNeutral® Protocol, a leading framework for carbon neutrality.

We are a founding signatory of the UK Initiative Climate International (ICI) and are committed to integrating climate change risks and opportunities into our investment processes. We believe in forward-thinking, responsible business and that ESG is key to building companies that will compete long into the future. ESG risks vary according to sector, region and size. We take this into account to understand the most relevant issues for each business.