Adams Street has long considered environmental, social and governance (“ESG”) considerations an integral part of our investment decision-making process.
Over five decades of private markets investing, our investment diligence has considered such factors as a fund’s or portfolio company’s governance practices, the quality, sustainability and transparency of its operations, and the geographic scope, industry-specific attributes, and other impacts of its business.
Our second annual ESG Report delves into the progress we have made on certain ESG goals, the evolving ESG practices of our active GP relationships, and our perspectives on the growing opportunity set for impact investments in private markets.
Highlighted by our support of these organizations, we are committed to integrating ESG considerations into our investment process and to promoting ESG-related initiatives within the industry.
Adams Street is committed to integrating ESG factors into our analysis of current and potential investments. Pre-investment, the consideration of relevant ESG factors plays an important role in both investment and operational due diligence. Post-investment, we take a proactive approach to investment monitoring and evaluate any ESG-related developments.
While Adams Street considers broad ESG factors in its risk analysis and investment processes, the firm does not directly consider “adverse impacts of investment decisions on sustainability factors” as contemplated by European Union Regulation 2019/2088 at this time. Adams Street may adopt further measures which take into account adverse impacts of investment decisions in this context.
Our review of ESG data from third parties is an important component of our extensive investment diligence process that also includes Adams Street’s own analysis and assessment of relevant ESG considerations.
Apex ESG Ratings & Advisory is a real-time ESG data analytics solution that provides insights into underlying fund and private company investments. The analytics platform securely processes a variety of ESG data streams to provide tailored insights during investment and operational due diligence.
RepRisk is a leading ESG data provider that offers extensive private company coverage. It is updated daily, covers more than 100,000 companies, and integrates the Sustainability Accounting Standards Board’s materiality framework.
The Sustainability Accounting Standards Board (SASB) connects businesses and investors on the financial impacts of sustainability. SASB standards enable businesses around the world to identify, manage, and communicate financially material sustainability information to investors.
Incorporating ESG into the investment process is a relatively new phenomenon for the private markets. Today, institutional investors are under increasing pressure to not only ensure their portfolios take ESG factors into account, but also provide transparency around the impact on returns and the broader community.
In this video, Miguel Gonzalo and Alejandra Lesch of Adams Street’s Investment Strategy and Risk Management Team, explore what is driving the increased interest in ESG, the creation of reporting standards for metrics such as impact on performance and carbon footprint, and the opportunity private market investors have to enhance returns by integrating ESG in the decision-making process.
Adams Street has a dedicated ESG Committee which meets quarterly and oversees ESG integration. Our ESG Committee includes representatives from each of our firm’s investment teams and each of the key geographies in which we invest.
