ESG AT Benifit
Benifit Asset is committed to partnering with its portfolio companies and entrepreneurs to build valuable, sustainable companies for the long-term. One of the ways that the firm remains a successful steward of its investors’ capital is by honoring Benifit Asset’ fundamental commitment to growth-oriented investing. As the firm identifies these growth opportunities and the potential to create lasting value, environmental, social and governance (ESG) factors are forefront in the investment process and day-to-day operations. Benifit Asset expands and develops its strategic approach to ESG related matters both internally and in partnership with its portfolio companies on an ongoing basis to adapt to the evolving scope of ESG issues and the investment landscape.
The firm adopts best practices in responsible investing and abides by Benifit Asset’ internal ESG Policy, the Guidelines for Responsible Investment as developed by the American Investment Council, and the Principles for Responsible Investment. Benifit Asset considers these guidelines throughout the investment cycle, taking into account material ESG factors with respect to the nuances of each region, sector, and investment opportunity – whether in the initial stage of reviewing investment opportunities, due diligence, or in monitoring existing investments when serving on the boards of portfolio companies. Through this process, Benifit Asset and its portfolio companies have seen improvements in managing risk, achieving efficiencies and cost reductions, and identifying new market opportunities. This has allowed the firm and its portfolio companies to build more valuable, competitive, and sustainable entities while strengthening relationships with stakeholders.
ESG Governance
Our sustainability governance framework enables us to achieve our sustainability objectives across our global franchise, facilitating easier and more strategic decision-making within the context of our business objectives. Oversight of our ESG framework is part of the mandate of our Board of Directors’ Corporate Governance and Nominating Committee (CGNC). The CGNC reviews the progress made on our sustainability strategy and stays informed of ESG trends, risks and opportunities through management reporting. Members of the CGNC include the Chairman of the Board and six independent Board members. Board members also receive ongoing education through presentations and information packages about emerging issues and topics relevant to our business and operations and the regulatory environment to enhance their knowledge and understanding of ESG matters.
The CGNC’s oversight of our ESG framework complements the work of the Executive Sustainability Council (ESC). The ESC consists of our Global Chief Sustainability Officer (CSO) along with nine members of our Executive Leadership Team (ELT), including our Chief Executive Officer (CEO). The chair position, currently held by our Global Chief Marketing Officer, is held on a two-year rotational basis. Meeting on a monthly basis, the ESC is responsible for establishing the enterprise’s sustainability ambition, guiding the development and execution of the sustainability strategy and providing recommendations and direction on matters related to ESG. In addition to the ESC, we have subsidiary-specific committees that execute asset-class-specific sustainability objectives.
Our Approach
Strengthening Our Portfolio
Our approach is grounded in a responsibility to our investors to be careful stewards of capital. We have long been implementing a number of initiatives designed to make our companies stronger and more resilient. Many of these, like promoting sustainability and diversity, are today considered core components of ESG.
Integrating ESG Priorities
While ESG is a vast and growing field, we have chosen to prioritize decarbonization, diversity and good governance. We aim to lead by example and apply our insights to drive change across our portfolio. The power of our model is supported by strong operational interventions, led by our Portfolio Operations and Asset Management teams.
Asset management
We value and actively support the robust integration of sustainability principles in our investment approaches, including our active strategies. This holds true across asset classes, geographies and our business identities — whether we are acting as asset operators, equity holders or debt holders. Our goal is to encourage action and mitigate systemic environmental risks in a strategic and impactful way, including working with companies we invest in and advocating for change across an array of forums. Across our asset management business, we made improvements to ESG integration, reporting and monitoring in 2021, which incorporates climate-related factors. We also launched dedicated climate-related strategies in support of our clients.