Stewardship is a complement to the way Equistone does business: active support so that the companies we invest in remain attractive for the future. As primarily majority investors with a long-term perspective we can help portfolio companies realise sustainability milestones and advance in their ESG Strategy maturity. Our aim is to promote adoption of better ESG practices throughout the holding period, ensuring that post-investment, we work closely with our businesses to progress on their ESG journeys and build credentials and capabilities over time.
Simultaneously, this engagement deepens our understanding of our companies’ ESG profiles. We believe that, through stewardship, we are ensuring our investments’ will continue to perform well in the context of the global sustainability transition.
This is where our work begins. When the three of us joined Equistone, it was clear that the firm’s approach to stewardship would have to be consistent with its investment beliefs; building close partnerships that facilitate meaningful, two-way conversations with our management teams. The way we supported companies on their ESG efforts needed to be consistent with building close partnerships that drive meaningful dialogue with our boards, CEOs, and wider management teams was key. In this way, the structure we have shaped thus far has been collaborative at the very heart – we focus on generating buy-in, bringing individuals along the journey, and therefore starting companies on ESG journeys that will continue long after Equistone’s investment.
Equally as important has been wider team engagement. Deal team members have been deeply involved, as they are best placed to support stewardship initiatives.