Responsible investment policy
At Industry Capital, we recognize the increasing importance of Environmental, Social, and Corporate Governance (ESG) factors within the macro trends and global context of our operations. We understand the material value of recognizing ESG risks and opportunities within our investments, and fully integrate ESG within our business processes and policies to maximize value. Industry Capital is committed to the long-term and sustainable success of our investments; this commitment is embodied in our drive to incorporate the highest standards and best practices that underlie responsible investment, including being signatories to the Principles for Responsible Investment.
Our corporate values place integrity, transparency, leadership, and stewardship at the forefront of all our activities. We believe that the application of these corporate values across our operations demonstrates our fundamental dedication to corporate responsibility and citizenship. Industry Capital has an obligation to our investors, the communities in which we operate, and our global environment; we understand meeting these obligations is not just the right thing to do, but a smart way to generate value.
ESG considerations throughout the entire investment cycle
At Industry Capital, we incorporate ESG factors throughout the investment cycle; from pre-investment due diligence, to our role as responsible owners, to ensuring maximized value-creation at exit.
During the pre-investment process, we evaluate the data relevant to the ESG performance of target investments. This approach allows us to identify ESG risks for potential investments as well as possible opportunities for value creation.
Once an investment agreement is reached, material ESG objectives are established. Progress on ESG goals is monitored through regular reporting channels and communicated to Limited Partners on a regular basis.
With ESG considered throughout the cycle, day-to-day implementation responsibilities lie with our investment managers and analysts. At a strategic level, overall responsibility for establishing ESG goals and ensuring integration across all business units lies with the Responsible Investment Committee. The Committee defines performance targets and measures progress towards these targets on a biannual basis, and is composed of representatives from the Industry Capital senior management, investment management team, and team leaders from all business units.
To inform our responsible investment activities, we use established frameworks and benchmarks to ensure our activities are aligned with best-practice. Wherever possible, we use established industry-specific frameworks such as the CDC Toolkit and Global Real Estate Sustainability Benchmark to guide us in determining the degree to which particular ESG considerations are material, relevant, or applicable.
Within the broader mandate of maximizing value through the expression of our values, Industry Capital’s ESG framework covers the following objectives:
Environment:Undertake environmental impact assessments; reduce adverse impacts and mitigate environmental risks; improve eco-efficiencies; make efficient use of natural resources; and support the reduction of greenhouse gas emissions.
Comply with all local environmental regulations, adhere to relevant IFC guidelines and performance standards, and follow applicable ISO 14000 standards.
Social:Equitable treatment of all employees and contractors; effective management of labor; undertake health and safety assessments and minimize the risks identified; guard the health and safety of those directly and indirectly affected by our operations; have a positive impact in the communities in which we operate.
Comply with all local regulations, International Labor Organisation’s Fundamental Conventions, and UN Declaration of Human rights. Use ISO 26000 to guide efforts and improve results concerning corporate social responsibility.
Governance:Have the highest standards of integrity and transparency, ensure effective governance structures are in place, zero-tolerance corruption policy applicable to all partners, principals, employees, consultants, and third party partners for all operations and markets, effective policies in place to prevent conflict of interests.
Comply with all local regulations, follow guidance from OECD Anti-Bribery Convention to ensure proper internal controls and compliance, and use UN Anti-Corruption Toolkit to ensure best practices.