Long considered as part of its activities, BC Partners has formalised our commitment to high standards in its own ESG Policy. The policy sets out the significance of ESG factors in relation to its investors, portfolio companies, employees and other stakeholders. As an investor, BC Partners aims to grow and improve performance as well as minimise risk in areas relevant to the long-term sustainability of each business in its investment portfolio.
Since March 2009, BC Partners has been a signatory of the United Nations supported Principles for Responsible Investment. The Principles for Responsible Investment provide a voluntary framework to managers for incorporating environmental, social, and governance (ESG) issues into their mainstream investment decision-making and ownership practices.
BC Partners takes an active role in improving ESG awareness, performance and compliance in each portfolio company.
At BC Partners a mandatory ESG assessment is undertaken during due diligence by the deal team members for each prospective investment.
Since 2012, the firm has required that within one year following an initial investment, a portfolio company must complete an ESG assessment. During these assessments, all portfolio companies are scored on a proprietary ESG maturity index along the five categories Governance, Marketplace, Environment, Community and Workplace and benchmarked against their publicly available peers. In addition, a risks and opportunity assessment is conducted, and concrete next steps are agreed with the respective management teams.
Following the initial ESG assessment, each portfolio company is then required to carry out their own ESG assessment in a BCP wide consistent template and present it to their board of directors on an annual basis, focused on performance and progress relative to company specific KPIs. Additionally, on a regular basis during the Portfolio Review Committee (“PRC”), ESG matters are flagged when appropriate to the PRC.