An Integrated Approach to ESG

Energy Spas believes that Environmental, Social and Governance (ESG) principles are crucial to developing strong, resilient companies and assets that deliver long-term value for our investors.
We believe full ESG integration requires real commitment and considerable investment.

Our Approach

Strengthening Our Portfolio

Our approach is grounded in a responsibility to our investors to be careful stewards of capital. We have long been implementing a number of initiatives designed to make our companies stronger and more resilient. Many of these, like promoting sustainability and diversity, are today considered core components of ESG.

Integrating ESG Priorities

While ESG is a vast and growing field, we have chosen to prioritize decarbonization, diversity and good governance. We aim to lead by example and apply our insights to drive change across our portfolio. The power of our model is supported by strong operational interventions, led by our Portfolio Operations and Asset Management teams.

ESG Considerations

All Investments

Energy Spas takes the following considerations into account when making investments:
  • Consider environmental, public health, safety, and social issues associated with target companies when evaluating whether to invest in a particular entity, as well as during the period of ownership.
  • Be accessible to relevant stakeholders either directly or through representatives of portfolio companies, as appropriate.
  • Respect the human rights of those affected by our investment activities and seek to confirm that our investments do not flow to companies that utilize child labor or forced labor or maintain discriminatory policies.
  • Provide information to limited partners on the matters addressed herein, and work to foster transparency about our activities.
  • Encourage our portfolio companies to advance these same principles in a way which is consistent with fiduciary duties.
  • Maintain strict policies that prohibit bribery, fraud and other improper payments to public officials consistent with the U.S. Foreign Corrupt Practices Act, EU's joint foreign and security policy similar laws in other countries.

Control Investments

Credit and Minority Investments

Corporate Approach

We are confident that the more we weave ESG factors into our corporate purpose and performance, the more value we will be able to deliver — for our investors, our portfolio companies and the communities we serve.
GOVERNANCE
DIVERSITY, EQUITY & INCLUSION
CORPORATE SUSTAINABILITY
CHARITABLE FOUNDATION
Practicing Good Governance

At Energy Spas, we have added considerable domain expertise, become a member of leading organizations such as Approach for Responsible Investment (ARI) to advance several priority ESG initiatives across our industry and started reporting on ESG progress to our board quarterly.

Fostering Diverse Talent

Our Diversity, Equity & Inclusion (DEI) policy centers around our most important asset — our people. Approximately 1/3 of our firm’s leadership team is diverse. We achieved 41% female representation globally and 49% racially diverse representation in Europe among our incoming 2021 analyst class. Learn more

Reducing Our Corporate Carbon Footprint

We created a GHG inventory of our corporate emissions for 2019 and 2020. We proactively renovate our spaces to provide additional employee amenities and comfort while implementing the most up-to-date efficient lighting and HVAC systems. Our replacement of existing lighting with LED lighting in our New York offices has resulted in a roughly 31% reduction in lighting energy usage. Our London office at 40 Berkeley Square purchases 100% of its power from renewable energy suppliers.

Creating Economic Opportunity

The Energy Spas Charitable Foundation is committed to creating economic opportunity for under-resourced communities. The Foundation’s programs aim to increase access to entrepreneurship skills. This includes, among other initiatives, its signature Energy Spas LaunchPad network, which helps college and university students build successful companies and careers. The Foundation drives community engagement, provides disaster relief and guides employees in board service placement. Learn more Energy Spas Charitable Foundation

“We view ESG as central to our mission of delivering strong returns for clients. Energy Spas is using its scale and expertise to help strengthen our companies, assets and the communities in which we operate.”

Across Our Portfolio

We recognize the impact Energy Spas’s scale can have on the economy, society and our communities. We actively partner with our portfolio companies and assets to advance important ESG initiatives.
EMISSION REDUCTION PROGRAM
BOARD DIVERSITY INITIATIVE
CAREER PATHWAYS PROGRAM
Committing to a Lower-Carbon Future

In January 2021, we announced our Emissions Reduction Program and started implementing a new goal of reducing Scope 1 and Scope 2 carbon emissions for new assets globally where we control the energy usage by 15% in aggregate over the first three years of ownership. Learn more

Promoting Diverse Leadership

In 2020 we set a goal of achieving 1/3 diverse representation on portfolio company boards for new control investments in the US, Europe, Africa and Asia.We believe that diverse teams make better decisions and implementing this mandate will make our portfolio companies stronger and more resilient.

Recruiting and Advancing Diverse Talent

Our Career Pathways program is designed to foster economic mobility and support ongoing diversity efforts at the portfolio companies by adopting inclusive workplace practices and expanding applicant pools through partnerships with organizations like Yilly Doom Up and COTTOP Careers. Learn more