Responsible Investment - Buenavista Equity Partners

Responsible Investment

At Buenavista, we have created a list of key performance indicators to track our ESG transformation and to make a comparative assessment of our ESG progress in our three divisions.

ESG Integration Indicators

Firstly, we analyse the measures we take during the investment process with internally developed indicators to appraise the ESG integration before and during the investment period. Buenavista is studying how to calculate the added value that ESG actions have for the company at the exit point.

: Screening of excluded sectors

Pre-acquisition analysis of sectors promoting sustainability

Pre-acquisition ESG Due Diligence

Inclusion of ESG aspects in investment proposals
: Adoption of internal systems and procedures for ESG issues

Creation of a roadmap for the three ESG action fields

Integration of ESG into the three divisions (Private Equity, Infrastructure, and Venture Capital)

Portfolio management:
Ensuring good corporate governance in the portfolio that also contributes to the improvement of investment value
Monitoring of more than 60 key performance indicators in the ESG area
Annual Responsible Investment Report
Establishment of a shared framework within the United Nations Sustainable Development Goals (SDGs)
: Support in the exit of the portfolio company

ESG monitoring, reports, management, and legacy

Assessment of the reduction of the Principal Adverse Impact (PAI) during the ownership period

Management systems and tools

Inclusion of a sustainability section in offers to potential buyers

Key Performance Indicators

Secondly, we assess the key performance indicators of our portfolio companies. In 2021, we measured our progress in the three business units, being aware of the differences between them.

With our Private Equity area, we hold a majority stake in the companies, which allows us to make decisions and promote ESG matters more dynamically. Our goal is to measure the effectiveness of our mission of inspiring and raising awareness about the importance of doing good business around these critical issues.

For this analysis, we evaluate the measures taken during and after the investment period to determine the ESG integration. Thus, we monitor corporate governance, social, and environmental fields, and the information provided by our portfolio companies. The key indicators we consider, which expand or vary depending on the type of asset or sector, are as follows:

The existence of independent directors, a Code of ethics/ethical policy, an anti-money laundering and anti-corruption policy, and compliance systems.

01. Corporate Governance

Equal opportunity plans, talent attraction and retention, data protection measures, health and safety plans, corporate volunteer initiatives, and environmental action.

02. Social

Waste and consumption control, existence of environmental policies and certificates, measurement of carbon footprint.

03. Environment