ISG POLICY
ESG POLICY
ISG - POLICY
ESG POLICY
ISG believes that Environmental, Social, and Governance (ESG) principles are crucial to developing resilient companies and assets that deliver long-term value for our investors. We are committed to integrating ESG into our investment process and operating philosophy. This ESG Policy outlines our firm-wide approach to integrating ESG in our business and investment activities.
- ESG at ISG
ISG is committed to integrating ESG factors throughout its own corporate operations and we focus on matters that are meaningful to our Employees, Share-holders/Investors and Society/Community at large. We seek to lead by example and apply our insights to drive change across our portfolio, including by:
- Measuring and reducing Greenhouse Gas Emissions (GHG) resulting from our business operations and increasing the use of clean energy across our all offices.
- Recruiting and fostering diverse talent through active affinity networks that are dedicated to hiring, retaining and raising awareness of diverse groups through speaker series, networking events, service opportunities, and mentoring relationships.
- Driving social change in communities where we operate by providing opportunities for the people in those communities in collaboration with our non-profit and educational partners.
- Training specific employees and certain other personnel, consultants and advisers through Annual Compliance Training, which includes topics such as data protection and privacy, our Code of Conduct and fiduciary duties / conflicts of interest among others, in addition to an initial training during their on boarding.
- Engaging the entire firm annually through our cybersecurity awareness program to educate our employee population to recognize suspicious activities and report them for investigation.
- ESG Integration in the Investment Process
The integration of material ESG factors into our investment decisions and ownership is an important part of fulfilling our mission to create strong returns for our investors. Based on our experience, we think that consideration of ESG factors not only enhances our assessment of risk – it helps us identify opportunities for transformation and value creation. We believe that our ESG program can strengthen companies, drive value, enhance returns, and help to create better outcomes for people and communities.
As applicable and material to any given investment, the ESG factors that may be incorporated into our investment evaluation and monitoring processes include, but are not limited to, the following:
| Environmental Considerations | Social Considerations | Governance Considerations |
|---|---|---|
| Greenhouse gas emissions | Diversity, equity, and inclusion (including anti discrimination) | Corporate governance and oversight |
| Air pollution | Human rights and modern slavery | Risk management |
| Waste management (including land and water impact) | Employee health and safety | Conflicts of interest |
| Energy management and efficiency | Labour relations and practices | Transparency (including financial and operational reporting) |
| Land use | Customer privacy and security | Fraud, anti-bribery and anti-corruption controls |
| Climate risk | Product quality and safety |
ESG expertise is embedded across ISG, with domain experts sitting within our business units, Respective teams and corporate functions. We strive for a highly coordinated approach, knitting our efforts together through a dedicated corporate ESG team that looks to apply best practices, champion firm-wide initiatives, and regularly report to stakeholders where applicable.
- Focus Areas
Across our corporate activities, we have identified priority ESG topics that we believe can most affect our ability to build strong companies of enduring value.
- Climate Change Mitigation, Resiliency, and Adaptation
We recognize that climate change is a systemic issue, affecting all sectors and geographies. Our goal is to reduce carbon emissions through our various initiatives and which is guided by Global climate guidance and Programs. We also see energy transition as an important investment theme. Finally, over time we also intend to assess physical and transition risks from climate change, and develop resiliency responses to these risks, where applicable, as part of our overall process.
- Diversity, Equity, and Inclusion (DEI)
We are highly focused on driving diversity within our Organization. Moreover, we are working to foster employment opportunities and career mobility for diverse people across the Society.
- Good Governance
We believe that good corporate governance is essential for companies across all sectors. We support the implementation of good governance through various Corporate Governance measures spanning board governance to controls. Specifically, we prioritize an experienced, active and engaged Board of directors with the skill to properly oversee and direct management and encourage protocols to enhance transparency and good governance.
- Stewardship
We regularly engage with our partners, investors, stakeholders, and industry on ESG matters. As applicable, ESG matters are discussed at ISG’s periodical board meetings.
- Reporting
We are committed to being transparent with our investors, shareholders, and other stakeholders about ISG’s ESG initiatives, successes, and goals. Our ESG report plans to provide updates regarding our ESG program firm-wide on an annual basis, and we further plan to provide periodic ESG updates on our website. We value regular, frequent engagement with our stakeholders on ESG matters.
- Roles and Responsibilities
ISG’s MD/CEO/HOD’s have ultimate responsibility for overseeing the ESG Policy. The corporate ESG team coordinates initiatives across the firm to maintain consistency in approach. The Legal & Compliance teams of ISG along with Head of ESG, are responsible for supporting and ensuring compliance with additional ESG policies and related standards and overseeing their annual review.
The corporate ESG team also monitors changes or updates to industry trends, policy, and regulations and provides specialized expertise to the business units as needed.
- Scope
This ESG Policy applies to ISG’s investments and business and is reviewed annually to reflect changes to the business.This ESG Policy is subject to change as the firm considers necessary or advisable. This policy is intended to be reviewed annually.
