Silverfleet Capital Partners LLP (“Silverfleet Capital”) is a private equity manager, and in this capacity recognises the impact private equity investments may have on the environment and society. Silverfleet Capital is committed to “responsible investment” (“RI”) and has formulated guidelines on and management of environmental, social and governance (“ESG”) issues with regard to its private equity investment activities, that recognise that RI should look to deliver both financial value and sustainable growth.
Through investing in growth companies and sectors, we strive to deliver superior investment returns by growing high-quality, socially responsible businesses; and as a result of our active ownership model, we look to manage ESG opportunities and risks to encourage and support companies to adhere to best-practice standards for responsible business.
In February 2011 Silverfleet became a signatory to the UN Principles of Responsible Investment (“UNPRI”), making the firm one of the first private equity managers (General Partners) to do so, and in becoming a signatory we formalised our commitment to achieving high standards of corporate governance, business integrity and professionalism in all activities.
Silverfleet’s commitment to RI extends beyond our investee companies, and embraces the ESG impact of our own operations, for example by upholding the highest standards of business conduct and through being a responsible employer, by creating an equal opportunities culture and having a commitment to developing each member of our team, giving them the opportunity to perform to the best of their ability.
In 2018, Silverfleet established its ESG Steering Committee, with senior representatives of each of the firm’s offices and service lines. Gareth Whiley, Karl Eidem and Darren Jordan have operational responsibility for ESG issues, with the aim of ensuring that the firm’s ESG policies are reflected in the companies in which we invest, and are consistent with our Limited Partner’s and other stakeholders’ own ESG initiatives.
Silverfleet ESG Review
Beyond this, Silverfleet’s Investment Committee ensures that all opportunities are assessed from a RI perspective to identify ESG risks and opportunities, prior to committing any capital. This ensures that the firm does not support any business that is harmful or exploitative in a broader ESG perspective.
Having made an investment, over the period of our ownership we seek to put in place policies and procedures that ensure that the business systematically takes material environmental and social issues into account in their activities and to promote international best practice with regard to corporate governance. As a minimum, Silverfleet’s portfolio companies will be required to comply with our Exclusion List, and with all applicable environmental, social (eg health and safety, employment) and legal regulations.
We work with the management of each of our portfolio companies to establish an ESG risk and reporting framework, and embed a regular, tailored ESG reporting process for each investee company. Over time we work towards relevant international best practice standards for corporate governance and environmental and social risk mitigation; with targets and timelines set for improvement. Silverfleet may invest in portfolio companies with weak ESG practices, provided that ESG shortcomings are identifiable and able to be addressed during the period of our investment.
Responsible investment portfolio principles
A central tenet of Silverfleet’s approach to investment is creating value through sustainable growth. Sustainable growth is foremost in delivering both superior investment returns for our investors, as well as providing services or resources that can benefit the wider community.
To support this philosophy our principal RI investment objectives are:
To invest in businesses which:
- commit to continuous improvement in their overall impact on the environment;
- encourage their principal suppliers to adhere to the same ESG standards;
- where appropriate, work towards compliance with international environmental standard and local legislation, during our period of ownership.
We shall only invest in businesses that:
- are equal opportunities employers;
- aim for fair treatment and mutual respect of and amongst all employees;
- support the abolishment of child labour and forced labour;
- adhere to labour laws and standards, as well as health and safety regulations.
During the period of our ownership, we look to ensure that the businesses:
- are committed to managing talent and maximising employee retention through high levels of employee engagement;
- seek to grow through creating sustainable jobs in the local communities in which they operate.
We look to invest in businesses that are committed to high standards of business ethics, that comply with local legislation, and are able to comply with our own Anti-corruption and bribery polices.