Our Approach to ESG
Wren House is committed to responsible investing, with Environmental, Social and Governance (ESG) considerations embedded in all aspects of our investment and asset management process. Infrastructure businesses are inherently operationally complex, and so in the management of our portfolio, we have a rigorous focus on harnessing ESG risks and opportunities. We firmly believe these protect and enhance returns throughout the whole investment lifecycle.
Pre-Investment / Due Diligence Process
- Investment teams integrate ESG factors into screening and due diligence analysis when we evaluate investment opportunities. In particular, we focus on the transition to a low carbon economy, waste and pollution and general compliance to jurisdictional standards.
- Increasingly, social factors have moved beyond Health & Safety (H&S) and labour elements to focus on Diversity, Equity & Inclusion (DE&I), community impact, anti-bribery and corruption and cyber security standards.
- We work with top-tier advisors to assess perceived deal risks and opportunities prior to investment decisions
- Board composition, governance and management processes are critical to success of every investment. Our investment teams rigorously focus on assessing critical risks, and ensure robust stewardship and governance standards are put in place at all levels of our portfolio companies.
During Our Ownership
- We have established a 10-point ESG Framework, which is a core component of our portfolio value creation framework. This review is incorporated in yearly planning reviews of our portfolio businesses.
- The ESG Framework aims to create long-term sustainable value in companies through responsible behaviour in relation to environmental practices, the treatment of employees, customers and suppliers, and leading transparency and governance practices.
- We believe that a focus on ESG has direct impact on economic value, through improved business performance (for example, lower energy costs / avoided emissions, lower lost time injuries / forced shutdowns of facilities, avoided costs of remedial actions or fines, higher levels of employee retention).
Our ESG Framework
Compliance with respective jurisdiction standards
Policy and approaches to areas ranging from Climate Change, Energy Usage, Natural Resources and Pollution & Waste
Health and Safety (H&S)
Labour management (diversity, apprenticeship)
Local community impact
Anti-bribery and corruption
Privacy and data security practices – GDPR and Cyber Security