Responsible Investing statement
At TowerBrook, we aim to integrate the consideration of environmental, social, and governance (ESG) issues into our investment process and into our firm’s own operations. We seek to make a lasting, positive contribution to the stakeholders in our business and to the communities and environments in which we operate.
That means both doing the right things by investing consistently with TowerBrook values and doing things the right way by holding ourselves and our portfolio companies accountable in how we operate.
We take the view that responsible investing is not only the right way to conduct our business but it also can help deliver better results for our Funds and our investors.
We identify and consider ESG risks and opportunities during our investment decision-making processes. We will not consider investing in companies that we know are involved in serious violations of internationally recognised human rights and labour rights as well as certain industries including armaments, tobacco, sexual exploitation and unregulated gambling.
We encourage our portfolio companies to manage ESG risks and to identify and act on ESG value creation opportunities, and we monitor their efforts to do so. Should any material ESG issue arise with our existing portfolio companies, we will work closely with their management teams to seek an appropriate outcome.
We remain committed to complying with all applicable laws and regulations and strive to achieve the highest standards of ethical conduct. We also expect our portfolio companies to comply with applicable laws and regulations.
We work to ensure that we at TowerBrook, and our portfolio companies, incorporate environmental sustainability practices into our operations. We seek to mitigate the environmental impact of our own operations when possible, and we encourage our portfolio companies to proactively manage their environmental footprint. We promote awareness of environmentally efficient, effective and economic practices among our portfolio companies.
We expect every member of the TowerBrook team to exemplify the highest standards of ethical conduct and to act with regard for the wellbeing, health and safety of others. We encourage and support practices at TowerBrook and at our portfolio companies to ensure an engaged, healthy, safe, and productive workforce. We remain committed to comply with applicable national and local labour laws and workplace health and safety laws, and expect our portfolio companies to comply with applicable laws as well.
We promote and support a diverse and inclusive workforce that promotes respect, integrity and teamwork and encourages new ideas and perspectives. We aim to encourage diversity in, and the development of, our people through recruitment and retention programmes as well as through training and mentoring. We expect our partners, employees and other stakeholders to treat others fairly and without prejudice to gender, race, ethnic or national origin, socioeconomic status, immigration status, age, religion, sexual orientation or disability.
We respect the human rights of those affected by our investment activities and take steps to confirm that our investments do not support companies that use child or forced labour or maintain discriminatory practices. We encourage our portfolio companies to ensure that, where applicable, their suppliers adhere to ethical practices and respect human rights, including, without limitation, in respect of working conditions, child labour, and forced labour. We also engage with our supply chain to ensure our suppliers are not violating human rights.
We invest to build strong and sustainable businesses. On acquiring a portfolio company, we seek to put into place a financing structure appropriate to ensure that the company will be able to meet all its obligations, including during challenging trading conditions. This means that levels of debt leverage will typically be set conservatively to ensure that companies can operate robustly, even in turbulent economic circumstances.
We support the communities in which we live and work.
For many years, a proportion of the profits in our management company has been allocated and continues to be allocated to the TowerBrook Foundation, which works with a wide range of charitable causes introduced by members of the TowerBrook team. Read more about the Foundation here.
Many of our partners and employees are also directly involved in charitable and volunteering activities, and we encourage and support them in their endeavours.
We seek to be transparent with our limited partners, reporting to them on how we manage ESG issues.
We require our portfolio companies to adopt clearly articulated governance principles that are designed to ensure that their approach to social, environmental, and ethical issues is consistent with our commitment to the values of responsibility, integrity and sustainability. In each of our portfolio companies, the Board and Board committees meet at least annually to ensure that the company’s ESG activities are adequately led and monitored. We encourage clear, accurate, timely and transparent activity reporting affecting all material aspects of our portfolio companies, including material ESG aspects.
We take steps to ensure that this statement and our corresponding practices are understood and shared across the TowerBrook team and our portfolio companies. We have formed an ESG Committee, composed of senior TowerBrook professionals, that is tasked with the management and oversight of our ESG programme. We keep this statement, and our monitoring of the ways in which it is implemented, under continuous review.
This Responsible Investing Statement applies to all private equity investments made by TowerBrook for which TowerBrook has control or significant influence (“portfolio companies”). In cases where TowerBrook is a minority investor, where other circumstances impact TowerBrook’s ability to assess, set, or monitor ESG-related performance goals, or where we identify material ESG issues that cannot reasonably be addressed, we may not necessarily be able to fully implement this Responsible Investing Statement. In such cases, TowerBrook will make reasonable efforts to encourage consideration of relevant ESG-related principles by the investee company.