Our clear mission: highest standards for sustainable value creation.

Responsibility

Our Responsibility

We are aware of our broader societal responsibilities. Hence, we have committed ourselves to sustainable corporate governance, fulfilling high standards with regard to environment, social and sustainable governance (‘ESG’). In that context, we include ESG-related opportunities and risks in our investment decision processes thereby identifying companies that benefit from sustainable future trends and generate positive social value through their business models and ESG performance. Our funds do not invest in businesses, which are exposed to significant ESG related risks or pose such a risk themselves. We monitor that our portfolio companies adhere to these standards which form part of a sustainable value creation strategy.

In the following, we provide details on our philosophy with regard to environmental, social and governance aspects. Furthermore, we illustrate certain important indicators, which we consider in our investment decision processes and the strategies of our portfolio companies:

We are convinced that the continuous improvement of the sustainability of operations of our portfolio companies must be part of a successful, long-term value development strategy. It is our aspiration to promote economic activity in accordance with sustainability principles and to protect resources for future generations. We support our portfolio companies in actively engaging with environmental issues that relate to their specific business activities, including the reduction of energy and water consumption, waste and hazardous materials.

Relevant sustainability indicators reviewed before any investment is made as well as during the ownership period include i.a. their

  • Greenhouse gas emissions,
  • Energy consumption intensity,
  • Emissions into the water,
  • Share of hazardous waste.

Attracting and developing motivated employees forms a key success criterion for us and portfolio companies. Accordingly, we consider safe working conditions, attractive remuneration schemes as well as opportunities for professional and personal development to be important conditions for sustainable corporate success.

In addition, our portfolio companies have a societal responsibility in their respective communities. We actively support local social involvement and training of young talent.

Sustainability assessment criteria during the investment process as well as in cooperation with our portfolio companies are for instance

  • No discrimination,
  • Safety at work standards and accident rates,
  • Number of sickness days and employee turnover,
  • Analysis of the supply chain to avoid child or forced labour.

Responsible corporate governance is highly important to us. We do not limit ourselves to compliance with legal requirements, but actively promote good governance. We strictly oppose any type of unethical business practices. Transparent decision-making processes, open communication and timely information are critical. This forms the basis for our working relationship with investors, management teams and business partners – it supports trustful and sustainable partnerships.

The most relevant sustainability indicators include

  • Anti-bribery and anti-corruption standards,
  • Misconduct according to the UN Global Compact principles and the Organisation for Economic Co-operation and Development’s (OECD) guidelines for multinational businesses.

Integration of ESG standards at ECM

It is our conviction that a thorough review of the ESG criteria as laid out above provides for better investment decisions and impacts the development of our portfolio companies in a positive way. In this context, we have defined certain exclusion criteria, which prohibit any investment by our funds. Such exclusion criteria include gambling, pornography, weapons and tobacco. Further exclusion criteria are serious misconduct in the areas of environmental, social or governance. This includes, for instance, the cause of environmental damages, misconduct against employment law or human rights or damage to customers based on inadequate product safety or data security.

The central element of our sustainability review is always good governance to identify opportunities and risks at an early stage. Based on company and potentially third-party information, material aspects in the areas of environmental, social and governance are reviewed to identify their impact on the future business development.

During the investment period, we support the management teams of our portfolio companies in minimising ESG risks and identifying opportunities based on the specific company’s business model and its governance practice. It is our clear goal to enable the companies to continuously optimise their ESG performance. We support the management teams in developing suitable measures to achieve this goal.