Our Environmental, Social & Governance Practices
There are three levels of ESG implementation at Buckthorn.
Our three-level framework allows Buckthorn to manage ESG risks, promote ESG practice in portfolio businesses, and meet specific LP ESG reporting requirements.
The starting point is Buckthorn’s principles for ESG investing, which we have adopted from the PRI (“Principles for Responsible Investment“). The next two levels provide frameworks for how Buckthorn assesses investment opportunities and identifies ESG risks and opportunities during the diligence and portfolio management phases. Our framework draws on the UN Global Compact and UN Sustainable Development Goals.
Buckthorn’s principles for ESG Investing
Buckthorn has adopted the PRI principles for responsible investment to guide our work in ESG in relation to our process both in investment analysis and portfolio management:
- Incorporating ESG policies into investment analysis and the investment decision-making processes.
- As active owners, we incorporate ESG into our ownership policies, practices and reporting.
- Portfolio companies are required to report pre-agreed ESG metrics.
- Where possible we will promote acceptance and implementation of ESG principles within the investment industry.
- We report to our Investment Committee on portfolio company activities and progress towards implementing the principles.
- We work together with our industry to enhance our effectiveness in implementing the principles.
Assessing Investments and Guiding the Portfolio
Using the UN Global Compact Principles
Sustainability for businesses starts with the values and principles of doing business and operating in ways that meet fundamental responsibilities. Buckthorn uses the UN Global Compact Principles to identify ESG risks in new investments and in existing portfolio companies.
Buckthorn assesses investment opportunities for key risks in these ten areas during the diligence phase. We focus on areas where we see potential for non-compliance.
Buckthorn works with portfolio companies to assess ongoing business risks against the principles and to identify opportunities for improvement in operations.
Using the UN Sustainable Development Goals to Promote ESG thinking and ideas
Buckthorn understands ESG issues affect the value and performance of portfolio companies. At Level 3 focus is on implementation.
The seventeen UN Sustainable Development Goals (SDG) provide an opportunity to promote progress in using ESG thinking and ideas in managing and developing a business. We use the SDGs as a tool to develop ESG thinking and practice in portfolio businesses.
Buckthorn ensures management promotes SDGs in the organisation, identifies opportunities to improve performance in specific SDG areas, identifies business relevant metrics in relation to chosen SDGs, and reports progress on these at board meetings.