ESG at Maverix
OUR APPROACH
Responsible investing is an integral part of our investing approach.
We believe that integrating Environmental, Social and Governance (“ESG”) factors into our investment decisions enables us to better manage risks, deliver strong risk adjusted returns to investors and contribute to the long-term performance of our portfolio.
Embedding ESG into our practices will also help us achieve our vision by enabling us to capitalize on opportunities and minimize risks relating to the rapidly evolving sustainability landscape.
OUR VISION
“To pioneer a community of disruptors by building a dynamic partnership of entrepreneurs who create transformative and sustaining impact.”
OUR ESG PRINCIPLES
Our approach to ESG is guided by five core principles
We will:
1. Build knowledge and awareness
2. Embed ESG in our operations
3. Focus on the issues that matter, using the concept of materiality
4. Embrace changes as ESG processes and standards evolve
5. Engage regularly with our stakeholders and community
ESG IN OUR INVESTING PROCESS
We have designed a framework that integrates ESG into our investing process consistently while recognizing that no two companies are the same. This aids our investment teams in understanding and managing risks and opportunities throughout the investment lifecycle.
Our ESG process begins with deal origination and flows through to portfolio management and eventual exit. It can be summarized by these core activities:
Pre-investment:
Using a materiality driven approach, we apply ESG criteria when identifying and sourcing investment opportunities and conducting investment analysis throughout the due diligence process.
Investment Decision-Making:
Relevant ESG matters are incorporated into the overall assessment for all potential investments. The investment team and the Investment Committee will work together to evaluate the ESG risks identified during diligence and consider how to mitigate or eliminate them. They will also consider potential ESG value creation opportunities for future engagement with the management team, should the investment be made. All this is done within our internal ESG dashboard that is customized to each investment opportunity.
Post-Investment:
After closing a transaction, we actively monitor ESG issues and metrics using our ESG dashboard which captures the findings of our diligence process. Where risk mitigation and/or value creation opportunities are identified, we will advocate for and support management teams at the portfolio company in making the necessary improvements.