Responsible investment focuses on the importance of environmental, social, and governance (ESG) factors, understanding that sustainable returns are built on well-functioning, stable, and well-governed systems.
* Definition adapted from the Cambridge Institute for Sustainability Leadership
Given Select’s broad investment universe, we recognize the necessity for a holistic approach to sustainable investing that considers industry, market, and national differences across the spectrum.
Select specializes in deal-by-deal direct transactions, which minimizes blind pool risk and enhances our ability to work closely with local partners on every investment. Hence, our ESG strategy is designed to both understand each project’s ESG impact and assess the ability of our project partners to manage the ESG risks effectively throughout the investment's lifetime.
Our analysis relies on the evaluation of 10 main topics spanning the traditional Environmental, Social, and Governance pillars. Each topic is carefully assessed using the traffic light approach system. By categorizing performance as Positive, Neutral, or Negative, we offer a straightforward and transparent view of how the ESG performance is evaluated.
Our in-house approach is consistent across our strategies (Private Equity, Real Estate, Venture Capital, Special Opportunities). It begins with a qualitative evaluation, including determining applicable Sustainable Development Goals (SDGs), conducting high-level ESG diagnostics, and performing a controversy check. As part of our commitment to responsible investing, we aim to align our investment strategy with contributing to the achievement of the SDGs.
Additionally, we integrate climate change considerations into partner due diligence to better understand climate risks and opportunities within our portfolio.
This process is followed by a quantitative assessment using an ESG scorecard, along with ongoing partner monitoring and engagement during the investment holding period.
For further information on Select’s ESG methodology, please access the presentation. Our latest official transparency reports can be accessed directly from the PRI Data Portal.
