Adams Street has long considered material environmental, social and governance factors 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.
Adams Street is committed to investing responsibly. Pre-investment, the consideration of relevant and material environmental, social and governance factors plays an important role in both investment and operational due diligence. Post-investment, we take a proactive approach to monitoring such factors as it relates our investments and evaluating potential risk incidents.
While Adams Street considers a broad range of material environmental, social and governance 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 consider adverse impacts of investment decisions in this context.
Highlighted by our support of these organizations, we are committed to integrating material environmental, social and governance factors into our investment process and to industry initiatives which we believe can both promote responsible investment practices and align with our fiduciary duty to our clients.
Our review of environmental, social and governance 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 environmental, social and governance risks.
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 sustainability trends into the investment process is a relatively new phenomenon for the private markets. Today, some institutional investors are under increasing pressure to not only ensure their portfolios take sustainability-related risks and opportunities into account, but also provide transparency around the impact on returns and society more broadly.
In this video, Miguel Gonzalo and Alejandra Lesch of Adams Street’s Investment Strategy and Risk Management Team, explore what is driving interest in sustainable investing, the creation of reporting standards for metrics such as impact on performance and carbon footprint, and the opportunity private market investors have to potentially enhance returns by integrating these considerations 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.
