Harvest Partners has strived to act as a responsible global citizen since its inception. Consistent with providing the best possible returns to our investors, we believe a genuine commitment to the highest standards of business practices and ethics is essential. By considering environmental, social and corporate governance (ESG) factors as we make investment decisions, we believe we are creating a sustainable long-term strategy and creating value for our portfolio companies and shareholders.
In developing our policy, we have considered a range of industry standards, including the United Nations Principles for Responsible Investment (UNPRI), the UN Global Compact (UNGC) and the American Investment Council’s Guidelines for Responsible Investment.
ESG Guiding Principals
In realizing our ESG values, we commit to integrating the following considerations into our investment decision and portfolio oversight processes, as well as our internal ESG management:
- Climate Change: The identification and mitigation of both physical and transition risks that arise as a result of climate change will enable our portfolio companies to become more resilient, sustainable, and productive
- Environmental Impact: By minimizing and properly managing the environmental impact of raw materials in their operations, companies enjoy long-term cost-savings and may benefit from improved relations with regulatory bodies and local communities.
- Diversity and Equal Employment Opportunity: Diversity in the workplace fosters greater innovation, while equal employment opportunity protections uphold the values of equal treatment and opportunity for all.
- Social and Labor Conditions: By engaging and maximizing the potential of its human capital, a company can reduce unwanted employee turnover and realize improvements.
- Worker Health and Safety: A company has a significant responsibility to its workforce to ensure employee protection from occupational safety and health risks in operations.
- Supply Chain Compliance: Companies can extend their values to all parts of their operations, including their supply chains, by procuring inputs from sources that responsibly manage labor and safety risks.
- Data Privacy and Security: Consumers increasingly expect companies to safeguard their personal data and other sensitive information. Adherence to stringent information security standards upholds company obligations to customers and regulatory bodies.
- Product Safety and Integrity: Confidence in the safety and quality of a company’s products prevents costly penalties and bolsters a company’s reputation.
- Anti-Bribery and Corruption: Anti-bribery and corruption diligence improves companies’ capacity to prevent incidents that may arise from operations in countries at risk of bribery and corruption, preserving reputational capital and avoiding regulatory fines.
- Ethics and Compliance: Ethics and compliance standards serve to prevent conflicts of interest and other appearances of ethical impropriety that may otherwise place companies at risk, especially in engagements with U.S. government entities.
In executing the above ESG Principles, our Investment Professionals shall:
- Conduct ESG due diligence, combining risk mitigation and value creation, to identify and address risks that are material to the operational and financial longevity of our portfolio companies.
- Monitor ESG factors annually for portfolio investments, post-acquisition, to facilitate continuous ESG improvement.
In executing the above ESG Principles, our Senior Leadership shall:
- Delineate responsibility for executing ESG commitments to our Investment Professionals for investment due diligence and hold themselves accountable for internal ESG matters.
- Conduct ESG training annually for Firm Investment Professionals on ESG best practices.