The GrowthCurve Capital ESG policy is rooted in our belief that the financial success of our partners is integrated with the broader needs of stakeholders within our industry, our portfolio companies and our community at large. The foundation of this approach is based on our conviction that we are responsible for incorporating a sustainability mindset and an ESG lens from the time we source investment opportunities, through the diligence process, during ownership and including the path to monetization and exit. GCC’s commitment to ESG includes a recognition of the impact that companies or industries can have on vulnerable individuals or communities, the environment, or society at large. Indeed, we believe that empowering collective stakeholders without compromising climate, health, freedom and equity can help create better risk-adjusted returns for our investors. GCC intends to consider material ESG risks and opportunities in our investment decisions and oversight of our portfolio companies through the following key focus areas:
1. ESG Governance and Firm-Wide Culture
A key element of our ESG Policy is facilitating the implementation of our commitments to ESG throughout our firm and our advisors. GCC has designated an internal ESG committee to oversee and support ESG commitments. We strive to ensure that all employees are held accountable for day-to-day responsible investment efforts. We seek to enhance ESG management capacity among our employees and advisors by distributing this policy and all related ESG materials to investment professionals, functional leaders, firm operations staff, consultants and advisors, as appropriate, and building ESG awareness among our employees through formal and informal training on ESG issues and their impact on investment value.
2. Considering ESG in Due Diligence
GCC is committed to building ESG considerations into the due diligence process for potential acquisitions to ensure that our investments conform with this policy. We intend to implement this commitment by:
· Identifying and assessing material ESG factors associated with an investment target (i.e., factors that may have a meaningful positive or negative impact on financial performance) as part of the due diligence process.
· Engaging internal and external expertise as needed to enhance our assessment of investment target’s ESG issues. If due diligence identifies significant concerns, engaging outside ESG consultants for further review.
· Aligning investment criteria with sustainability and ESG principles, and ensuring that findings related to material ESG risks and opportunities are documented and appropriately communicated in investment committee materials.
· Sharing material ESG due diligence findings, including risks and opportunities, with the portfolio company post-close to promote hold period integration.
3. Portfolio Company Ownership Consistent with our ESG Principles
GCC’s commitment to ESG continues throughout its ownership of its investments. After it makes an investment, GCC intends to exercise oversight of the implementation of and adherence to this ESG policy by its portfolio companies during the ownership period. If there are material ESG risks or opportunities identified for select companies, then value creation plans incorporate the necessary steps to mitigate risk and/or capitalize opportunities. We expect these processes to continue through the life of an investment.
4. ESG Accountability and Transparency
GCC will strive to create accountability within the organization and provide transparency to its investors of its approach to, and assessment of, ESG issues. We intend to implement this by:
· Allocating internal and external resources to support the commitments made in this policy.
· Integrating discussions of material ESG issues, management activities, and progress in reporting and communications internally and with investors.
· Notifying investors of material negative portfolio company ESG incidents that are likely to result in additional scrutiny for investors, where appropriate or deemed necessary after consultation with the ESG Committee and/or Investment Committee.