After an investment has been made, HPE Growth uses reasonable best efforts to actively monitor its portfolio companies with respect to Sustainability Risks and other ESG matters. The firm requires portfolio assets to report on material Sustainability Risks in its ESG questionnaire it sends to portfolio companies twice each year. The firm also uses its membership on the boards of portfolio companies and/or its position as an observer to stay informed of Sustainability Risks facing those companies. ESG metrics collected directly from companies are augmented, if necessary, by data from external data providers.
In relation to specific financial products, the firm measures the performance of its companies in achieving certain SDGs.
HPE Growth will provide annual ESG reporting as required by the SFDR at the entity and product level, following the required reporting schedule. As a signatory of PRI, HPE Growth also reports on the responsible investing approach in the PRI annual assessment.
HPE Growth produces an annual Impact Report that shares the outcomes and trends of its ESG monitoring efforts with investors and other stakeholders. Material Sustainability Risks, if any, are included in this Impact Report.
Impacts of Sustainability Risks
Throughout the processes outlined above HPE Growth uses reasonable best efforts to integrate Sustainability Risks into its investment decisions. These are not limited to initial screening or due diligence; the firm uses reasonable best efforts to monitor and report on investments throughout the investment cycle and commits to reporting on such risks to investors as outlined above.
Through the integration of the processes outlined above, HPE Growth believes that likely impacts of Sustainability Risks on the returns of any given product are low. However, the relevant pre-contractual disclosure of each product will provide a more bespoke risk rating as is suitable for that product and its activities.
Review of the Policy
This Principal Adverse Sustainability Impacts Statement (Version 1) is effective as of 1 August 2022 and will be reviewed at least once a year.