Building Value, Sustaining Values
Tene Capital has long recognized that environmental, social and governance (“ESG”) issues can have an outsize impact on the success of our investments. The integration of ESG values in the evaluation process for selecting portfolio companies can enhance the long-term value of our funds by mitigating risk and capturing new opportunities. A commitment to incorporate ESG issues into investment decisions is an integral part of the way we do business.
We take seriously our duty to endeavor to ensure that our portfolio companies embrace the integration of ESG principles into their day-to-day business activities, both for the benefit of society as a whole and our investors. Sustainability and profitability can be two sides of the same coin and we at Tene are constantly mindful of the ways in which the right investments can produce a better world for everyone.
Tene Capital’s Responsible Investment Policy is based on the following principles.
Preserving the Environment
We all serve as stewards of our planet and its ecosystems for future generations, and Tene Capital strives to integrate sustainability considerations into the selection of its portfolio companies. Changing environmental conditions pose differing threats to various sectors and geographic regions, and companies must work to overcome these challenges while taking into account their own unique circumstances.
Tene carefully considers the environmental practices and effects of potential portfolio investments,including:
• Investment in new technology to mitigate harmful environmental effects, such as greentech and cleantech;
• Creation of policies around effective waste management and minimal land contamination;
• Utilization of source reduction and alternative production methods to minimize the consumption of resources and production of new waste and pollution;
• Reduction of energy usage and maximization of the efficient usage of natural resources; and
Under the right conditions, companies can serve as a force to improve the social welfare of workers and marginalized populations.
Tene Capital strives to ensure that its portfolio companies enact policies that allow them to conduct their businesses responsibly while benefitting the overall social wellbeing of workers. We examine potential portfolio companies to gauge:
• Obedience of local and international laws and treaties regarding social issues
• Encouragement of alignment across teams and business units on relevant aspects of the company’s social responsibility policies;
• Engagement with subcontractors and third-party suppliers to determine labor practices and potential improvements;
• Compliance with relevant anti-corruption and anti-bribery laws and regulations; and
• Development of processes to respond to or provide remedies in situations where social responsibility norms and internal corporate policies are not observed.
Portfolio companies that are mindful of good corporate governance practices can improve their bottom line while maintaining strong relationships with employees, long-term investors, and the public. Human capital is an irreplaceable facet of company success, and effective corporate governance policies should facilitate the growth and development of a more capable workforce and stronger leadership teams.
In order to ensure that portfolio companies can hire, train, and maintain a capable workforce and diverse management teams, Tene Capital closely evaluates each potential investment’s corporate governance policies, seeking out best practices such as:
• Implementation of company policies governing control mechanisms, CEO and board independence, remuneration policies, and employee relations;
• Enhanced transparency and accountability vis-à-vis long-term shareholders and relevant stakeholders;
• Investment in efforts to create diverse and involved management teams;
• Engagement in corporate philanthropy and community service.