We sustain the environment we operate in
Our corporate strategy policy is designed to promote sustainable investments and responsible engagement that prioritize the well-being of the environment, the community, and government interests. As a testament to our commitment, we have been endorsing the UN's Principles for Responsible Investment (PRI) since 2011.
We are proud to have received an A+ rating in both the Direct Private Equity Module and the Strategy and Governance Module for the past four years, recognizing our dedication to incorporating sustainability practices into our operations. Our annual Sustainability Report, initiated in 2012, highlights the comprehensive Environmental, Social, and Governance (ESG) initiatives undertaken by Glenn Hill and the Glenn Hill Funds in our portfolio companies. We believe in the importance of transparently showcasing our efforts to promote sustainable practices and create positive social and environmental impact.
The Glenn Hill ESG Sustainability
At Glenn Hill, sustainability has been deeply integrated into our investment process for more than a decade, reflecting our steadfast dedication to responsible investment practices. We firmly believe that pursuing a responsible investment strategy can generate positive outcomes for both society and the environment while also delivering strong financial returns for our investors. Our unwavering commitment to responsible investment is driven by the belief that aligning financial objectives with sustainable practices can create a net benefit for all stakeholders.
- Environmental Highlights
- Social Highlights
- Governance Highlights
Investment processes and strategies
We integrate environmental, social, and governance (ESG) factors comprehensively into all our investment strategies, recognizing the importance of responsible investing. Additionally, we offer dedicated equity and fixed income strategies that specifically aim to achieve positive ESG-related outcomes. These strategies align with our ESG beliefs and enable us to deliver investments that not only generate financial returns but also contribute to sustainable and socially responsible outcomes.
With our global presence and diverse portfolio of businesses and long-term assets, we adopt an investment strategy and commitment to environmental, social, and governance (ESG) practices that align with this approach. We believe that value creation and sustainable development go hand in hand. Therefore, in all aspects of our operations, we adhere to procedures that benefit the communities in which we operate. By integrating ESG considerations into our decision-making processes, we strive to create positive outcomes for both our investments and the broader society. Our aim is to achieve long-term success while promoting responsible and sustainable practices.
Steps For Successful Business
Environmental Highlights
Implementation of robust environmental management systems across our portfolio companies to minimize environmental impact and promote sustainable practices. Integration of environmental considerations into our investment decision-making process, ensuring that we prioritize companies with strong environmental performance and potential for positive environmental impact. Support for renewable energy and clean technology initiatives through targeted investments, contributing to the transition to a low-carbon economy. Collaboration with industry experts, stakeholders, and policymakers to address environmental challenges and promote sustainable solutions. Regular monitoring and reporting of environmental performance and progress towards sustainability goals.
Social Highlights
Commitment to fostering a diverse and inclusive work environment, promoting equal opportunities and respect for all individuals. Implementation of responsible labor practices across portfolio companies, ensuring fair wages, safe working conditions, and adherence to labor standards. Engagement with local communities to understand their needs and contribute positively through initiatives such as community development projects and philanthropic activities. Integration of social impact considerations into investment decisions, seeking opportunities to support businesses that have a positive social impact on their stakeholders. Collaboration with social organizations, NGOs, and other stakeholders to address social issues and contribute to sustainable development.
Governance Highlights
Emphasis on strong corporate governance practices within our portfolio companies, including transparent reporting, ethical conduct, and robust risk management systems. Implementation of responsible investment policies and guidelines to ensure compliance with regulatory requirements and best practices. Active engagement with company boards and management teams to promote accountability, integrity, and long-term value creation. Support for shareholder rights and responsible ownership practices, including proxy voting and engagement with companies on governance matters. Regular evaluation and review of our own governance practices to uphold high standards of professionalism and ethics.
Enviroment
For numerous businesses, electricity usage holds significant environmental significance, making it the primary environmental indicator, when characterizing the portfolio of Our Buyout Funds, it can be best described as "asset light.".
Social
Across the portfolio, a range of procedures and practices have been implemented to ensure the welfare of the workforce.
Governance
The foundation of effective corporate management lies in a strong corporate governance framework and an ethical code that governs all our business activities.
ESG Integration
In order to manage risks effectively, we integrate ESG (Environmental, Social, and Governance) factors into our investment processes. Our investment principles, which prioritize drivers of return based on rigorous research, serve as the basis for designing our portfolios. We employ diversification strategies among issuers, industries, and nations when suitable, consider daily price information, and systematically implement portfolios by carefully balancing expected returns, expenses, and risks.
The approach outlined above incorporates diversification as a means to mitigate idiosyncratic risks, including those related to ESG factors. However, we also implement an additional layer of ESG-specific risk management. For example, we may opt to exclude privately held businesses with significant strategic shareholders from our pool of eligible securities, as they may not adequately represent the interests of all shareholders. Furthermore, based on available information, we may choose not to invest in businesses with a higher risk of fraud or other activities that could compromise the reliability of their financial statements. Additionally, we actively monitor daily news to identify portfolio companies involved in disputes that could significantly impact their financial performance, particularly those related to social or environmental issues.
In certain cases, these businesses may face temporary suspension of their purchases or be referred to our Stewardship team for engagement. We believe that these supplementary procedures further enhance our risk management approach by considering ESG factors as an integral component.
Targeted ESG strategies
We offer focused sustainability and social strategies that integrate ESG criteria and place a strong emphasis on achieving specific ESG outcomes. These strategies, characterized by wide diversification and value-added systematic investment solutions, incorporate ESG factors through advanced processes. Our extensive track record in managing sustainable and socially-screened strategies, dating back over a decade since the introduction of our first socially-screened strategy in 2009, serves as testament to our commitment in this regard.
Environmental Objectives
- To enhance awareness and accessibility to local transit options, we will actively promote and provide information about available public transportation links in the area. Additionally, we are dedicated to minimizing waste generation by implementing strategies to reduce and, where possible, eliminate waste production throughout our operations.
- As part of our efforts to promote sustainability, we will install water dispensers throughout our premises and provide all employees with reusable water bottles. This initiative aims to reduce single-use plastic waste and encourage the use of refillable containers. Moreover, we are committed to minimizing our reliance on paper products by implementing strategies to reduce or eliminate their usage, thereby reducing our environmental footprint.
-We are actively promoting recycling practices within our organization. Through education and awareness campaigns, we encourage employees to recycle materials properly and utilize designated recycling bins throughout our facilities. By promoting recycling, we aim to divert waste from landfills, conserve resources, and contribute to a more sustainable environment.
- We strive to enhance employee health and well-being by implementing measures to improve indoor air quality, enhancing handicap accessibility in our offices, and promoting additional health and wellness strategies. Through these efforts, we aim to create a conducive and inclusive work environment that supports the physical and mental well-being of our employees.
At Glenn Hill, we actively promote community engagement by developing and supporting charitable programs. Through these initiatives, we aim to foster connections within the community and make a positive impact by addressing social and humanitarian needs.:
- To encourage employee participation in charitable giving, we have introduced casual dress Fridays for employees who choose to donate $10 each. This initiative not only promotes a more relaxed dress code but also supports various charitable causes through voluntary contributions.
In addition, we prioritize collaboration with our joint venture partners to implement, track, and report on our ESG (Environmental, Social, and Governance) initiatives. By working together, we ensure a comprehensive and coordinated approach to integrating sustainable practices into our operations and fulfilling our ESG commitments.
-Partnered with ThinkHR to conduct anti-harassment training for all employees
Align our program with established sustainability reporting frameworks such as GRESB to enhance overall ESG performance and promote transparency in our reporting efforts.
Maintain active participation in industry organizations and associations that facilitate communication, transparency, and knowledge sharing, in line with the ILPA reporting guidelines.
Share quarterly and annual reports with Limited Partners, providing them with comprehensive updates on our ESG initiatives and progress.
Conduct annual investor meetings, including Advisory Board meetings, to foster transparent communication and ensure alignment with our stakeholders.
Employ governance structures that offer appropriate oversight in areas like audit, risk management, and the management of potential conflicts of interest.
Adhere to and surpass all relevant national, state, and local labor laws and regulations, ensuring compliance and upholding high labor standards.
Practice, Commitment & Policy
- Wellness and Safety
- Inclusivity
- Trust and Responsibility
- Privacy and Cybersecurity
- Transparency
Broad Accountability
Responsibility:
To mitigate stakeholder risks and position our portfolio companies for sustainable growth and long-term success, we incorporate comprehensive ESG analysis into our private equity investment process. Our dedicated subject matter experts at RCG conduct thorough assessments of technology, cybersecurity, and data privacy practices for each deal and add-on acquisition. To assess potential ESG risks and opportunities, we also collaborate with reputable law firms and consulting firms. The investment committee is kept informed of all significant findings.
At Glenn Hill, we prioritize monitoring ESG performance and progress throughout the duration of each private equity investment. We engage in ongoing discussions and written check-ins with the management and leadership of our portfolio companies, ensuring that ESG measures are upheld. Furthermore, our board provides oversight during quarterly meetings to ensure the continued implementation of ESG practices.
Principles for Responsible Investment
Serving a Broader Purpose
Thanks to our unparalleled expertise in the enterprise software market, we continuously uphold our commitments to investors who have entrusted us with their future. By placing a strong emphasis on ESG practices and policies, we demonstrate our dedication to responsible business conduct.
Our ESG principles are deeply ingrained in every facet of our operations, guiding us in making sustainable decisions. This approach ensures that our marketing strategy is not only effective in the present but also capable of enduring for the long term.
ESG Principles
By leveraging our unparalleled expertise in the enterprise software market, we consistently honor our commitments to investors who have placed their trust in us. We prioritize ESG practices and policies as a fundamental aspect of our operations, ensuring that our actions align with our principles.
Integrating ESG principles into every facet of our operations allows us to not only fulfill our responsibilities in the present but also create a marketing strategy that stands the test of time. We recognize the significance of sustainability and responsible practices in building a robust and enduring marketing approach.
ESG Principles
Mitigate the impact of our operations on the environment:
- We are committed to minimizing the environmental impact of our operations and continually enhancing our resource efficiency. Through ongoing efforts, we strive to reduce our carbon footprint, conserve resources, and promote sustainable practices. By embracing innovation and adopting more efficient processes, we aim to achieve continuous improvement in our environmental performance over time.
- We are fully committed to supporting the goal of achieving net zero greenhouse gas (GHG) emissions by 2050 or even earlier. We recognize the urgent need to address climate change and are dedicated to taking significant actions to reduce our own carbon emissions. By implementing sustainable practices, investing in renewable energy sources, and actively seeking innovative solutions, we aim to contribute to the global efforts in mitigating climate change and achieving a net zero future.
Ensure the well-being and safety of employees:
- We are dedicated to fostering a positive work environment that upholds the principles of respect for human rights, values diversity, and maintains a zero-tolerance policy for workplace discrimination, violence, or harassment. We strive to create a workplace where every individual is treated with dignity and fairness, regardless of their background, identity, or characteristics. We actively promote inclusivity, encourage open communication, and provide appropriate mechanisms for reporting and addressing any concerns related to discrimination, violence, or harassment. Our aim is to cultivate a safe and supportive environment where all employees can thrive and contribute their unique perspectives and talents.
- We prioritize the implementation of leading health and safety practices to support the objective of achieving zero serious safety incidents. The well-being and safety of our employees, partners, and stakeholders are of utmost importance to us. We maintain rigorous safety protocols, provide comprehensive training programs, and regularly assess and improve our health and safety practices. Through continuous monitoring, risk assessment, and proactive measures, we strive to create a work environment that prioritizes the physical and mental well-being of everyone involved. Our ultimate goal is to ensure that all individuals are protected from harm and that zero serious safety incidents occur within our operations.
Uphold Strong governance practices:
- We are unwavering in our commitment to operate with the highest ethical standards. Our business activities are conducted in strict accordance with our Code of Business Conduct and Ethics. This code serves as a guiding framework that outlines our principles, values, and expectations for all individuals within our organization. It sets clear guidelines for responsible behavior, integrity, transparency, and compliance with applicable laws and regulations. By adhering to our Code of Business Conduct and Ethics, we ensure that our actions are aligned with our core values and that we maintain the trust and confidence of our stakeholders.
- We place great importance on maintaining strong relationships with our stakeholders through a commitment to transparency and active engagement. We believe in open and honest communication, providing timely and accurate information to our stakeholders regarding our operations, performance, and decision-making processes. We actively seek feedback, listen to concerns, and address issues raised by our stakeholders. By fostering a culture of transparency and engaging in meaningful dialogue, we aim to build trust, strengthen relationships, and ensure that the perspectives and interests of our stakeholders are taken into consideration in our business practices.
Be good corporate citizens:
- We are dedicated to ensuring that the interests, safety, and well-being of the communities in which we operate are fully integrated into our business decisions. We recognize that we have a responsibility to act as responsible corporate citizens and to make positive contributions to the communities we serve. We engage with local stakeholders, listen to their concerns, and take proactive measures to address any potential impacts associated with our operations. By considering the social, economic, and environmental aspects of our business decisions, we strive to create shared value and foster sustainable development in the communities where we operate.
- We actively support philanthropy and volunteerism among our employees. We believe in giving back to society and making a positive impact in the communities where we live and work. We encourage our employees to engage in charitable activities and provide opportunities for them to contribute their time, skills, and resources to meaningful causes. Whether through organized volunteering programs, donation drives, or employee-led initiatives, we empower our employees to make a difference and support philanthropic endeavors. By fostering a culture of giving and community involvement, we aim to create a positive ripple effect and inspire others to join us in making a difference.
Glenn Hill's Net Zero Commitment
By 2050, achieving net zero emissions of greenhouse gases (GHGs) is a crucial objective. At Glenn Hill, we have experienced significant growth over the past 13 years, becoming one of the world's largest private renewable energy companies. With 20 GW of installed renewable generating capacity, our operations currently generate enough green energy to power the city of London. As we bring our development pipeline online, this capacity will more than double.
To effectively address the challenge of global emissions reduction, it is essential to focus on the final energy consumption sector, which accounts for over 70% of global emissions. Scaling up additional renewable power capacity is critical to replacing fossil fuel generation and meeting the growing global demand for electricity. Through our continued efforts, we are committed to rapidly expanding renewable power capacity to contribute to the reduction of global emissions and support the transition to a sustainable energy future.
Integrating ESG considerations into our investment process
To address important ESG considerations, we develop post-investment remediation plans and tailor our ESG due diligence for each investment. Our internal experts, along with a range of ESG frameworks, help identify significant ESG factors for all potential investments. In cases where additional expertise is required, we engage external consultants.
This comprehensive analysis covers various aspects of our portfolio, including environmental impact, legal and regulatory compliance, and identifying opportunities to enhance value or mitigate risk. To ensure that significant ESG risks and opportunities are duly considered, our investment teams follow a rigorous ESG due diligence procedure.
Subsequently, these teams provide the Investment Committee with a comprehensive memo that outlines the transaction's merits, risk disclosures (including significant ESG issues), and potential mitigation strategies. By following this process, we ensure that ESG factors are thoroughly evaluated and integrated into our investment decisions, aligning with our commitment to responsible and sustainable investing.
A strong governance framework
As part of our commitment to ethical conduct, we maintain a zero-tolerance policy for bribery, including the payment of facilitation fees. To ensure adherence to this policy, all Glenn Hill staff members are required to attend an annual comprehensive anti-bribery and corruption (ABC) training seminar. Additionally, we have established an ethics hotline where individuals can report any suspected unethical, illegal, or unsafe behavior. This hotline is accessible through a dedicated reporting website, which is operational 24/7 and managed by an impartial third party.
Furthermore, we have implemented an ABC policy that mandates portfolio companies to establish their own ethics hotlines within six months of acquisition. This requirement applies to all portfolio companies in which we hold a controlling interest. By enforcing these measures, we aim to promote a culture of integrity, transparency, and accountability throughout our organization and within our portfolio companies.
We remain committed to upholding the highest governance standards and fostering an environment that encourages ethical behavior and responsible business practices.
ESG FRAMEWORKS AND MEMBERSHIPS
Principles for Responsible Investment (PRI)
Glenn Hill has reaffirmed its dedication to ethical investing and upholding the highest standards of environmental, social, and governance (ESG) practices by becoming a signatory to the Principles for Responsible Investment (PRI).
The PRI is a leading global organization that advocates for responsible investing. It emphasizes the financial relevance of ESG factors and provides support to a network of investor signatories in integrating these considerations into their ownership and investment decision-making processes.
By joining the PRI, Glenn Hill aligns itself with a community of like-minded investors committed to responsible investment practices. We recognize the importance of considering ESG factors in investment decisions, as they can have significant financial implications and contribute to sustainable and long-term value creation.
As a signatory to the PRI, we are committed to actively incorporating ESG considerations into our investment strategies, engaging with companies on ESG issues, and promoting transparency and accountability in the markets. We believe that responsible investing is not only a moral imperative but also a sound investment approach that benefits our clients, stakeholders, and the wider society.
Through our PRI membership, we join a global movement that seeks to advance responsible investment practices and contribute to a more sustainable and inclusive financial system.
Sustainability Accounting Standards Board (SASB)
The Sustainability Accounting Standards Board (SASB) serves as a platform for businesses and investors to engage in discussions about the financial implications of sustainability. By adhering to SASB Standards, businesses can effectively identify, oversee, and communicate financially significant sustainability information to investors.
The SASB Standards, tailored to specific industries, are designed to assist investors in making informed decisions. These standards are developed using an evidence-based and market-driven approach.
Prince’s Accounting for Sustainability Project (A4S)
The Prince's Accounting for Sustainability Project (A4S) was founded by HRH The Prince of Wales in 2004 with the aim of inspiring and empowering the financial and accounting community to proactively tackle pressing challenges faced by the economy and society. These challenges include issues such as urbanization, inequality, and climate change.
The objective of A4S is to encourage financial leaders to take bold and proactive steps towards fostering resilient business models and driving the transition to a sustainable economy.
BSR
BSR, a global non-profit organization, works in collaboration with over 250 member companies in its network, along with other partners, to foster the development of an equitable and sustainable world. With offices in Asia, Europe, and North America, BSR utilizes consulting, research, and cross-sector collaboration to generate sustainable business strategies and solutions.
