Our approach to ESG management
As responsible owners we believe that integrating ESG considerations within the operational aspects of a business will allow us not only to manage risk but generate greater value for our investors. We achieve this through taking an active role in the operations of our investments, working in partnership with the management team to jointly solve problems and deliver potential opportunities which effectively enhance ESG performance.
Our approach is formalised through a comprehensive ESG Policy and Principles document. This provides a framework for the interactions we have with many of our different stakeholder groups. In line with these principles, we aim to pursue all ESG considerations in a seamless way, from our origination efforts, through due diligence, deal completion and then value growth during ownership to exit.
Our dedicated ESG Manager is Chair of TDR’s Responsible Investment Committee. This Committee provides a strong level of governance to ensure we are delivering against the commitments set out in our ESG policy and principles. The Committee meets quarterly to review portfolio company performance and discuss opportunities and risk mitigating activities arising during the quarter.
Individual deal teams are accountable for ESG monitoring in their companies, working alongside the management team to ensure this becomes embedded in the company reporting discipline. Each company is requested to report quarterly on progress against key material ESG risks and opportunities. In addition to this, companies are required to report at least annually against several Key Performance Indicators. These reports are reviewed by our Responsible Investment Committee with feedback provided to TDR partners and the deal team regarding any concerns or further opportunities.
Our ESG manager also takes a hands-on approach to working with our portfolio companies. This includes attending company ESG committee meetings, completing ESG performance reviews, acting as a critical friend, sounding board and sharing best practice activities across companies.
Selected awards for our portfolio companies:
“Best Use of Hybrid Technology” award for the modular homes installed at Keepmoat's Dominion development in South Yorkshire.
Recognising Keepmoat’s innovative work helping young people not in employment, education or training (NEET) in the North West of England.
David Lloyd Leisure
Recognising the positive results of the staff engagement programme at David Lloyd Leisure.