We believe sustainability
considerations are impacting financial markets.
Our approach to sustainability
At Equity Growth Capital, we see sustainability not only as an urgent need, but also an unprecedented opportunity to create value over the long term. Because preserving and creating wealth for generations to come is only possible when we make sure that growth is both profitable and sustainable.
The world around us is changing – demanding fundamental transitions in how we consume energy, food and materials. We’re focused on helping our clients navigate through these transitions, with an active, engaged approach based on our strong investment principles. Sustainability is therefore embedded throughout our services. We have set clear targets on all areas in which we at EGC have an impact – and regularly report our progress.
Aligning investments with values
In a fast-changing world, sustainability is a growing concern for our clients. Many investors have twin goals: to generate returns, and to do so in a way that aligns with their values.
We are committed to incorporating the management of risks associated with environmental, social and governance (ESG) factors across our entire investment platform. For investors who want to express their values explicitly in their portfolios, we offer a broad range of sustainable investment capabilities.
Sustainable investment capabilities for specific client goals
Our sustainable investment capabilities are designed to align with your financial and non-financial goals. We offer a spectrum of approaches, from screening out companies in specific industries to investing with the primary goal of achieving environmental or social benefits.
Exclusions
Excludes certain sectors, industries or practices from the portfolio based on specific ESG criteria.
Positive tilt
Tilted towards sectors, companies or projects with positive ESG characteristics; excludes certain companies based on ESG criteria.
Best-in-Class
Invests in companies that lead their peer groups in ESG performance; excludes certain companies based on ESG criteria.
Thematic
Invests in themes or assets specifically related to sustainability, with a top-down approach.
Impact
Invests with the primary goal of achieving specific, positive environmental/social benefits while also delivering a financial return.
Climate change
The time to act is now
Climate change is a global challenge that we cannot afford to ignore. Momentum is growing for ambitious carbon transition policies that will create winners and losers across companies, sectors and markets. For investors, the time to act is now.
At Equity Growth Capital, we have made significant investments in our climate-related investment capabilities and enhanced our efforts to help clients consider the material implications of climate change within their portfolios. We became a signatory to the Net Zero Asset Managers initiative in 2016, and are committed to working with our industry to promote action on climate change.
Achieving Net Zero: The path to a carbon-neutral world
Governments are aligning behind the goal of achieving net zero emissions by 2050, but dramatic changes to the global economy will be required to get us there. Learn more about the policies and innovations that could pave the way to a carbon-neutral world.
Why climate change matters to investors
Climate change is already transforming the investment landscape. The physical risks are becoming realities, regulatory pressures are growing, new technologies are replacing old and consumer behaviors are shifting.
By reflecting the transition in portfolios now, we believe investors will be better placed to manage the risks, capture the opportunities and contribute to the solution.
SEEKING BETTER OUTCOMES THROUGH UNIQUE PERSPECTIVES
- Sustainability research available to all EGC investment teams
- Climate-science-based collaborations with J&M Climate Research Center and the MIT Joint Program on the Science and Policy of Global Change
- Data-driven tools and technologies, including a proprietary climate-mapping application and sustainability-focused investor dashboards.
Industry leadership
To engage with policymakers and standard setters to improve client outcomes
Read More- Founding member and advisory group leader of Net Zero Asset Managers initiative
- Senior-level representation on the UN Principles for Responsible Investment board and other industry initiatives
- Equity Growth Capital Climate Leadership Coalition (EGCCLC) convenes asset-owner clients from Europe, North America, and Asia Pacific to forge a deeper understanding of the risks and opportunities associated with climate change
- Advocacy with policymakers and standard setters in support of standardization of sustainability disclosures
- Stewardship investing*
- Sustainable theme investing
- Climate investing
- Impact investing
Influential engagement
To open avenues to value creation by advancing resilient business practices and sustainable outcomes
Read More- Career industry analysts and experienced portfolio managers with access to company boards and management teams
- 9,463 tracked meetings in which E, S, or G topics were covered.* We believe these meetings open avenues to value creation through productive dialogue on material ESG issues.
- Ongoing enhancement of tools and technology for advancing engagements and outcomes
Sustainable investing and ESG solutions
Stewardship Investing
Environmental, social, and/or governance (ESG) factors are central to the investment philosophy in pursuit of value creation and/or risk management.
Sustainable theme investing
Socially and environmentally positive themes underpinned by structural economic drivers are central to the investment philosophy in pursuit of value creation and/or risk management.
Climate Investing
Seeks to invest in issuers that we believe contribute to a lower-carbon future, can help the world adapt to a changing climate, or are well positioned to manage transition and/or physical risks.
ESG Integration At EGC
Building more resilient portfolios for the long term
At Equity Growth Capital, we know that the way companies manage ESG risks and opportunities has consequences for their business results. Across our active investment processes, we incorporate financially material ESG factors in our research and decision-making with a single objective: to deliver stronger risk-adjusted returns.
What are ESG factors?
Environmental, social and governance (ESG) factors are a set of metrics - not always systematically reported in the past - that can affect the performance of companies and other security issuers.
ESG integration matters
Our belief that ESG integration can help us build stronger portfolios for our clients is supported by a large and growing body of evidence. Sustainable business practices are no longer optional for companies, but are becoming necessary to keep them from falling behind.
89% of empirical studies find a positive link between ESG factors and the financial performance of companies.
Evaluating ESG integration
ESG factors are integrated into each investment process in a manner consistent with the underlying investment style. However, the Sustainable Investing team use the same 10-point framework and assessment process to evaluate integration across strategies.
Metrics
- Research analyst/ investment due diligence
- Consideration at portfolio management / investment decision level
- Breadth of third-party ESG data
- Level of proprietary research conducted
- Company / Sector coverage
- Documentation of integration methodology
- Documentation of proprietary data and research methods
- Risk management and oversight
- Systemisation
- Ongoing monitoring and maintenance
Corporate Sustainability
"We embrace sustainability within our operations and empower our people to be
good stewards of the communities in which we live and work."
Taking steps forward
Together, we look at sustainability from our unique perspectives, accounting for the spectrum of risks, and rewards for our clients, our company, and our people.
Corporate sustainability at EGC refers to how our firm operates responsibly and sustainably. As a private partnership, we believe we have greater freedom to foster a culture and encourage the innovation that empowers our people to take action on sustainability, benefiting our clients, our company, and our people.
2023 Highlights
- Generated 45.5 GwH of green energy through our Virtual Power Purchase Agreement (VPPA) with Excelleire Green Power
- Awarded $10.3m in grants to non profits through the EGC Management Foundation
- Accelerated employee engagement through creation of EGC Global Green Network
Our firm’s approach to corporate sustainability, focuses on:
Effective operational stewards
We strive to consider sustainability within our operations, including the environmental impact of our offices and the human rights and diversity within our supply chains.
Within our office environments, we look to reduce our environmental impact. This includes increasing our use of renewable energy, practicing mindful business travel, responsibly expanding our global offices, and using sustainable technology.
Managing our supply chain responsibly
We value diversity and inclusion in every aspect of our business, including procurement. We strive for diverse suppliers to be direct and indirect providers of goods and services to our firm, collaborating with suppliers owned by women, military veterans, differently abled people, and members of the Black, Indigenous, and People of Color (BIPOC) and lesbian, gay, bisexual, transgender, intersex, and queer/questioning (LGBTIQ+) communities. We are raising internal awareness about opportunities to increase our work with diverse suppliers and trading partners, in part via our business networks.
We also take seriously our obligations to prevent modern slavery and human trafficking. We are committed to taking appropriate steps to ensure that the requirements of Australia’s and the UK’s respective Modern Slavery Acts are met within our business and supply chain.
Thriving communities
We believe by partnering with others we can help to strengthen the communities where we live and work.
We leverage our firm's charitable giving and our colleagues’ time, talent, and generosity to help drive social and economic inclusion in our communities.
In addition, the EGC Foundations support programs that help expand educational opportunities for youth and young adults in historically underserved communities.
"We are helping to provide life changing educational and futuristic opportunities
which helps to open up pathways for young people to succeed in school and in life."
Equity Growth Capital aims to make ongoing positive financial, social, and environmental impacts in the communities we work and live in. The EGC Foundations support programs and organizations seeking to close the opportunity and achievement gaps for youth and young adults in historically underserved communities.
Equity Growth Capital Foundation
EGC provides global support to programs and organizations that are helping to improve education and educational opportunities for youth in historically underserved communities.
Helping to close the opportunity gap in education
Created in 2012, the Equity Growth Capital Foundation donates money and volunteer time to more than 235 nonprofit community organizations that support youth in under-resourced communities in the Australia, North American and Asia-Pacific cities where we have offices. These organizations provide access to best-in-class educational programs and services, enhancing opportunities for future success. In 2014, the Equity Growth Capital UK Foundation was created to support organizations in both the UK and Europe.
The Equity Growth Capital Foundation is an independent corporate foundation funded by Equity Growth Capital, it’s partners and shareholders as well as current and former employees, who give generously to support a portfolio of nonprofit educational organizations. The Foundation is run by an advisory board which includes a chair and vice chair. All members of the advisory board are current or former EGC employees. In addition, the Foundation relies on employee volunteers each year to conduct due diligence on grant applications and build long-term relationships with the community organizations funded.
Our belief
We believe education is a critical lever in creating opportunities for equitable outcomes, including social and economic mobility.
Our mission
We support best-in-class programs and organizations in our communities that are improving education and educational opportunities for youth from traditionally underserved and historically marginalized communities.
Our portfolio
We support organizations across the full educational life-cycle of a student, from early education to career readiness programs, independent and charter schools, district-wide school-based programs, and after-school and summer programs, as well as college access and persistence programs.
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