EMK Capital believes strongly in the principles of responsible investing, with a focus on ensuring high environmental, social and governance (ESG) standards across our portfolio and operations. We believe that improving ESG performance is a critical part of ensuring long term success for any business today.
Building better businesses through effective ownership and management benefits all stakeholders, from employees to customers, suppliers and shareholders, and the wider community at large by creating jobs and supporting local communities.
As a commitment to our stakeholders and the communities in which EMK Capital and its portfolio companies operate, we have adopted a Responsible Investing policy based on the UN Global Compact and the Principles for Responsible Investment.
ESG in Practice
Prior to making any investment, EMK assesses the sustainability of each company, documenting any material findings in our investment papers. Where required external specialist advisors are engaged at an early stage to input to the ESG due diligence process on any potential target.
- Monitoring and Partnering with Portfolio Companies
Immediately after the acquisition of a portfolio company, the EMK team work to ensure it operates from a strong sustainable platform, proportionate to its scale and focus of operations. The EMK team’s governance role is an essential component in the portfolio companies’ value creation. In order to do this, EMK has established the following guidance, recommendations and restrictions related to ESG matters for portfolio companies which are discussed with Management prior to completion and throughout the lifecycle of the investment. From day 1, portfolio companies are supported in improving their ESG performance, identifying and responding to opportunities for further improvement on an ongoing basis:
- ESG should be part of each company’s value creation agenda, including having specific ESG projects and targets;
- Each company should have/develop an ESG related policy, serving the company’s specific needs and fulfilling at least EMK’s minimum requirements. EMK encourages the portfolio companies to promote adherence to the UN Global Compact throughout their supply chain;
- EMK encourages each portfolio company to strive for long-term continuous improvement, aiming beyond compliance, with a vision to reach industry best practice;
- EMK requires the board of every portfolio company to discuss the company’s compliance with its ESG related policy. EMK and portfolio company teams will work together to ensure that EMK’s investors are updated on these matters at least annually;
- If potential ESG related risks are identified in the investment process or later, the portfolio company will address such risks and thereafter strive for continuous improvement;
- EMK’s portfolio companies shall comply with applicable local and international laws and regulations, and, where appropriate, give consideration to relevant international principles; and
- EMK promotes transparency on ESG matters and as ESG management within the portfolio company evolves, EMK encourages external reporting on progress.
- Transparency and Reporting
In addition to being a signatory of the UN’s Principles for Responsible Investment, EMK reports ESG-related topics to investors every quarter, along with an annual detailed ESG Review Report.
ESG Activity at EMK
Starting in 2019 EMK are working with the London Academy of Excellence, a state school that started in 2012 to serve the brightest pupils in one of the most economically disadvantaged areas of London.
The Academy model relies on sponsorship, and the Managing Partners are personally sponsoring a number of pupils.
The investment team are providing mentoring to those students keen to learn more about the world of finance.