Environmental, Social & Governance
ARA Venn is committed to delivering investment performance to its clients in a responsible manner, by considering the environmental, social and governance impacts of our investment decisions
ARA Venn takes an active approach towards sustainability and aims to create real value not only for our investors, but also for the users and communities of the assets we invest in.
We strive to be a responsible investor and believe that the ability to identify, assess and manage Environmental, Social and Governance (ESG) considerations promotes sustainability and provides a positive ethical impact on our investments and corporate performance, whilst also benefitting local communities and society at large.
Our commitment towards sustainability is based on a foundation of robust ESG principles across the following two dimensions of behaviour:
- Our firm and our people;
- Our investments – strategies, investment selection and monitoring.
- Minimising the impact of ARA Venn’s operations and continually improving its environmental performance
- Compliant ready across all relevant legislation, regulations and appropriate codes of practice
- Extensive due diligence to assess the environmental implications of an investment
- Employee training promoting the awareness and understanding of ESG issues within the business
- Employee well-being across physical and mental health
- 1-1-1 Model: 1% of each of ARA Venn’s products, profits, and people’s time are given to support community causes
- Evaluate the social benefit and community enhancement of an investment
- Top down board level responsibility for ESG issues
- Stringent governance: ARA Venn actively operates a code of ethics and policies for each of anti-money laundering, conflicts of interest, disciplinary and grievance, monitoring, inducements gifts and anti-bribery, market conduct, personal account dealing and data security
- Due diligence to assess strength of stakeholders’ corporate governance
We firmly believe that ESG issues will increasingly influence the direction of our business plans, policies and decisions, as well as our engagement with various stakeholders. As part of the wider ARA Group, we benefit from the Group’s already extensive sustainability and ESG initiatives.
Our ESG framework is designed around a set of principles that apply across all aspects of the firm’s business, and is tailored to reflect the fact we operate in the private credit sector.
We are committed to delivering investment performance to our clients in a responsible manner and consider ESG factors to be of at least equal importance to other financial metrics when considering investments. The firm’s ESG policy outlines our approach to the investment process including the evaluation of investment strategies, pre-investment considerations and post-investment monitoring.
A comprehensive assessment of ESG factors is therefore an inherent part of our risk management framework and is embedded within the firm’s decision-making and due diligence processes. In addition, and consistent with their individual investment strategies, each underlying business unit has its own methods for incorporating ESG factors into the investment decision-making and monitoring processes.
When considering a potential investment:
|We use environmental criteria to assess how it will affect the natural environment, comply with relevant laws and regulations, and assist with the transition to a low carbon economy.|
|Applying a social set of standards, we evaluate the borrower’s approach to health & safety, labour standards and working conditions as well as the relationships it has with its stakeholders and the surrounding community.|
|We endeavour to understand the issues of sustainable investment addressed by our investors, and encourage all stakeholders to adhere to the highest level of corporate conduct and governance.|
More information on the firm’s investment approach can be found in our ESG policy, a copy of which is available upon request, and within our Sustainability Report for 2019.
As part of our commitment to ESG, we have adopted the 1-1-1 model, which means that 1% of each of our products, profits and people’s time are given to support community causes.
At least 1% of our people’s time should be spent on community or charitable causes, some examples of which are shown below.
In addition to time spent on charitable endeavours, ARA Venn contributes 1% of its profits to charitable donations.
All ESG ratings are uploaded into our VeRA system and monitored against our ESG corporate goal of having at least 1% of our AUM in ESG positive investments.
We were recently involved in some of the following community projects:
Our employees spent two days clearing rubbish on the beaches of Bournemouth. This not only served the community but was a great bonding exercise for the team.
We raised over £6,500 in an Apprentice-style challenge for Indigo Volunteers, a charity that recruits volunteers and connects them with humanitarian projects across the globe. Two teams spent the day in fierce competition, using their skills and contacts to raise as much money and as many prize donations as possible.
The ARA Venn team also took part in a charity football match against NBKI, with both teams donating £500 to Indigo Volunteers.
For the financial year 2019, we donated to the following charities:
ARA Venn’s managing board takes the lead in driving responsible business practices, enhancing performance targets and systems, and improving the disclosure processes. Meetings are held regularly, with the firm’s approach to ESG practices being evaluated to ensure continued progress and development.
Supporting the board is the ESG committee comprising of management representatives across ARA Venn’s key business units and functions. The committee’s primary focus is to the ensure that the ESG policies and procedures are implemented and executed, and to report monthly ESG information to the managing board.
ESG within the ARA Group
ARA Venn is part of the ARA Group (“ARA”), a leading Singapore-based APAC real assets fund manager with more than S$88 billion (£50 billion) in gross assets under management. ARA places great emphasis on sustainability, positive community impact and good corporate citizenship, and has well established environmental, social and governance policies which can be viewed at https://www.ara-group.com/esg.
Copies of ARA’s annual Sustainability Reports are made available on the Investor Relations portal, while the latest report may be viewed by clicking on the image below.
The following matrix highlights some aspects of the ESG initiatives and performance of the ARA Group: