ESG policy

Aliter Capital ESG Policy

This document sets out Aliter Capital LLP’s (“Aliter’s”) approach to the management of environmental, social and governance (“ESG”) issues, including the principles and procedures which Aliter has implemented in order to integrate these principles into its investment decisions and portfolio activities in relation to its funds under management. Aliter recognises that ESG can have a significant impact on private equity investment in terms of investment decisions, value creation in our portfolio companies and raising funds for further investment.

 

Our ESG Policy covers all of the portfolio companies of funds managed by Aliter, all investment activities throughout the lifecycle of an investment together with Aliter’s own operations. All Aliter staff are required to adhere to our ESG policy.

 

As further commitment to ESG excellence we have retained an external third party expert to advise Aliter on:

  • Regulatory frameworks

  • Guiding policies and industry best practice

  • Metric choice

  • Enhancements to the due diligence process

  • Ongoing portfolio company engagement

 

Guiding principles

 

ESG covers an array of issues and considerations but generally refers to three central factors – environmental, social and governance principles – which are applied to gauge the sustainability and ethical impact of an investment in a company or business and the way this entity conducts or could conduct its affairs.

 

Aliter has closely reviewed and aligned itself to the UN Sustainable Development Goals ( SDG’s). These  goals outline a clear system and a common language to help private equity funds achieve significant social and/or environmental impact through their investments. We have chosen certain SDG’s (which Aliter believe are closely aligned to the sector in which it operates) under which we have developed a set of tailored metrics from which we can measure our attainment of these goals. Aliter and all of its portfolio companies are measured against the same metrics. The data will be collated and updated annually. Aliter will have visibility of the data through a portal which is managed by an external third party.

 

At Aliter we ensure that ESG factors into consideration at every stage of our investment process and beyond and is an important part of our day-to-day management processes. Whilst we take ESG very seriously we are not impact investors.  We invest in great businesses that are looking to grow and expand across key sectors. Some of these businesses may have limited if any ESG focus at the time of our investment. It is a key part of our investment philosophy to improve their ESG focus over the period of our investment rather than exclude them as an investment opportunity. However, we will not invest in businesses whose operations are harmful to the environment, animals, their staff, communities they operate within or the public at large.

 

This policy declares our commitment to responsible investing and aligns with our unique investment principles and strategies to create sustainable long-term value.

 

Due Diligence

 

We have added an ESG section to our Information Request List. The output from due diligence will be assessed at the Investment Committee meeting and will be factored into any investment decision. We will also feed any ongoing work into our 100 day plan following such acquisition/investment.

 

Investment Cycle

Responsible investment is embedded across the entire investment lifecycle from deal screening and due diligence to ownership and exit.

 

 

Investment Exclusions

Investment opportunities that participate in certain negative ESG activities are excluded from investment selection for example (including but not limited to) the production of or trade in any product or activity deemed illegal under applicable local or national laws, weapons and degrading human practices such as the sex industry and related activities.

 

Our investments – ongoing ESG management

As part of our responsible investment approach, we take an active interest in how our companies manage ESG issues. We promote sustainable business practices through active management of our portfolio companies. We expect our portfolio businesses to ensure that responsibility for ESG related matters is delegated to an individual with suitable authority at Board level and that ESG matters are considered at board level on a regular basis, forming part of the decision-making process at all levels of the business.

Implementing best practice management techniques for ESG issues contributes to both mitigating risks and capturing opportunities that enhance the long-term value of Aliter’s portfolio companies and provide our investors with reassurance that we deliver strong returns in an ethical and sustainable manner.  

 

Our Operations

We endeavour to be a responsible investor and a responsible employer.

  • We maintain high standards of business integrity at all times. As Aliter operates within a regulatory framework, all Aliter employees are required to abide by Aliter’s Compliance Manual and corresponding policies including  Anti-Corruption and Bribery Policy, Information Security and Market Conduct. These are supported by appropriate levels of compliance monitoring.

  • We promote a transparent culture in relation to raising concerns about misconduct and unethical practices.

  • We are committed to being a first-rate employer by creating a diverse and inclusive workplace where everyone is welcomed, motivated and stretched. We aim to develop a diverse pool of high calibre staff and are dedicated to developing and managing talent, to give everyone at Aliter the chance to perform to the best of their ability.

 

Background and oversight

This policy has been in effect since December 2020 and will be reviewed at least annually.

 

Policy Sponsors: Billy Allan (Founding Partner), Claudia Beveridge (Head of Legal)

Policy Supervision: Aliter Capital Board

 

Review dates

This policy has been reviewed and approved by the Aliter Capital Board and will be reviewed annually.

 

Last reviewed: December 2020

Next review due: December 2021

ESG.png