Investment process

Our responsible investment philosophy is anchored in our Corporate Sustainability Statement. The Statement articulates our commitment to incorporating sustainability issues into our investment analysis process and active ownership approach. Sustainability factors are considered when we identify and evaluate potential investments, and they also inform our ongoing dialogue with our portfolio companies through our active ownership approach.

Investment analysis

As a long-term investor, we do not frequently make new investments. When potential investments are being considered, we conduct an in-depth analysis that evaluates both financial and non-financial factors. Our investment analysis process includes a robust due-diligence assessment of all potential acquisitions, focusing on factors such as corporate strategy, people management, capital structure and risk. ESG factors are analyzed through this process, enabling us to identify potential risks and opportunities that could have an impact on the overall value of potential investments.

Active ownership approach

As part of our active ownership approach, we oversee our investments by having our executives sit on the boards of directors of the companies we control. In other core investments in which we do not have control, we exercise our influence as a significant shareholder.

Our executives also engage with the senior management and boards of our controlled companies on a regular basis. In the course of this engagement, questions or issues may arise on a wide range of topics such as corporate strategy, risk management (including ESG risks), corporate governance and human resources.

In these interactions, we have an open and constructive dialogue to ensure that we have a proper understanding of how each management team handles sustainability issues. This allows us to ascertain that our investments are being managed in a manner consistent with our responsible management philosophy, including our Corporate Sustainability Statement and our Code of Business Conduct and Ethics.

Through this dialogue, we share knowledge, best practices, and identify areas for improvement. We also regularly engage with our controlled companies on sustainability issues through a group-wide Sustainability Committee and through other informal communications channels.