2. ESG Integration in the investment process

Stafford believes that good ESG management leads to enhanced long-term financial returns, better investment decisions and a closer alignment of objectives among investors, stakeholders, and society at large. Therefore, we integrate ESG considerations in all stages of our investment process, using the six principles of the PRI framework as guidance.1

Analysis of manager attitude and approach towards ESG integration forms an integral part of due diligence process of external managers in case of fund investments and co-investments. In addition, Stafford’s investment teams assess ESG risks and opportunities facing each asset, ESG related incidents, contribution to SDGs, alignment to Stafford’s RI policy and Fund objectives during the due diligence process. We look to improve any negative sustainability risks and impact that may exist or develop post-investment by working in conjunction with fund managers.

Through ongoing monitoring of their ESG performance and structured dialogue Stafford promotes ESG integration among external managers. The annual ESG survey provides valuable insights for engagement with the managers on their policies and implementation in the investment process. Engagement might also occur in response to ESG incidents in underlying portfolio companies which are monitored on an ongoing basis using RepRisk tool.

[1] More on the six principles can be found here: https://www.unpri.org/pri/what-are-the-principles-for-responsible-investment