Our ESG vision
At Sovereign Capital Partners we recognise that success extends beyond financial returns – it is intrinsically tied to our impact on the world.
We understand that responsible investment is not only about minimising risks but seizing opportunities to contribute positively to society and the environment.
Our approach to ESG
We have seen the benefits that weaving the full breadth of ESG into our day-to-day operations can provide.
To make sure we remain ahead of the curve, as responsible investors, we have developed a rigorous approach to integrating ESG into our investment processes. This is designed to mitigate risks for the investors who back us and the businesses we partner with, and to build better businesses by identifying opportunities for value creation. This approach is supported by our active management style.
As active managers, our ESG programme is designed to support each business and management team we back throughout the period of our investment. ESG is regularly reviewed, reportable at Board level and aligned with each business’s strategy and values.
Our ESG Policy
Integral to Sovereign as a firm and to our
investment processesConsidered in a replicable and robust manner, appropriate for a firm of our size and natureMonitored and developed throughout the time of our investmentUnderstood in the wider context of this rapidly
evolving area
Integrating Objectives
Our ESG Roadmap
Complementing our ESG Policy, our ESG Strategy develops the approach we have taken to successfully meet our objectives, providing a detailed roadmap for integration.
Pre-investment
We have appropriate tools in place that set out our systematic approach to analysing ESG risk and opportunity. ESG matters are discussed throughout the decision-making process.
Stewardship
We promote consideration of ESG within our portfolio, through action plans. We monitor progress towards ESG objectives and regulatory compliance. We encourage dialogue across the portfolio through the Sovereign Sustainability Network.
Reporting and Communication
We have established protocols for regular ESG reporting, including to the PRI. In addition, we would provide any other relevant ad-hoc communications should the need arise.
Exit
We will provide useful ESG information on a business at exit as part of the information memorandum as appropriate.
Review
We periodically review our responsible investment strategy protocols and tools to ensure they remain relevant in the business and the wider responsible investment agenda.
Training
ESG training is delivered to our entire investment team, and complemented by ‘on-the-job’ training on how to use our tools and foster ESG as part of the active management of our portfolio. In extending ESG responsibilities to the entire team, it has become integral to the firm’s culture.
From Origin to Exit
Our ESG Framework
For ESG practices to be meaningful and successful, we believe they needs to be part of a firm’s DNA. We have made great efforts to fully integrate ESG into our daily operations – from origination to exit – as well as those of our investees. To this end, our Strategy lays out an ESG Framework which provides a systematic structure to understand and assess ‘E’, ‘S’ and ‘G’ aspects.
- Pollution
- Use of resources
- Biodiversity
- Waste
- Carbon
- Climate change
- H&S
- Employment
- Human rights/modern slavery
- Diversity and inclusion
- Customers and marketplace
- Supply chain
- Community
- Board
- Organisational structure
- Business risks
- Compliance and regulation
- Ethics, anti-bribery, anti-money laundering
- Transparency and reporting
- Cybersecurity
Sovereign has been a signatory to the UN Principles for Responsible Investment since 2021 and we regard it as a crucial resource for industry-leading practices and helps us to understand the impact of ESG factors on the performance of our portfolio companies.
Working With Our Portfolio
The Sovereign Sustainability Network
We recognise that the greatest impact we can have in terms of ESG improvements is through our portfolio companies. In this way, we can amplify our impact at the same time as extending our reach to different sectors and communities.
To assist our portfolio companies in their sustainability journeys, we have created The Sovereign Sustainability Network, a structured support program which includes an annual carbon footprint report for each business and an ESG plan aligned with their values and strategy.
In addition, we support charities that are close to our hearts. We are always inspired by the valuable work these organizations undertake and the impact they make. They work tirelessly to help people, protect wildlife, and make a real difference.
1Initial Contact
2Survey
3Launch
4Ongoing Support
