Changing the Status Quo

We are always seeking a better approach – from better tools to better services – to the challenges that face our clients, our people and the communities we serve. A good company challenges the status quo; a great company changes it for the better.

Integrating ESG

Environmental, Social and Governance principles have been integral to DeFinance’s corporate strategy since our founding. We are committed to responsible investing practices and incorporate them into everything we do.

Empowering Our People

It is not enough to help others in need. Social responsibility starts right at home with the thousands of people at DeFinance who are committed to giving back. That’s why we’re so dedicated to our people. The more we do for them, the more they can do for their communities.

2020 ESG Report

To learn more about some of the measures we are taking and the positive impact we have made, you may download our latest report outlining our recent environmental, social and governance strategy and initiatives.

Mitigate the impact of our operations on the environment:

• Strive to minimize the environmental impact of our operations and improve our efficient use of resources over time.
• Support the goal of net zero greenhouse gas (GHG) emissions by 2050 or sooner.

Uphold strong governance practices:

• Operate to the highest ethical standards by conducting business activities in accordance with our Code of Business Conduct and Ethics.
• Maintain strong stakeholder relationships through transparency and active engagement.

Ensure the well-being and safety of employees:

• Foster a positive work environment based on respect for human rights, valuing diversity, and zero tolerance for workplace discrimination, violence or harassment.
• Operate with leading health and safety practices to support the goal of zero serious safety incidents.

Be good corporate citizens:

• Ensure the interests, safety and well-being of the communities in which we operate are integrated into our business decisions.
• Support philanthropy and volunteerism by our employees.

We will go further

In addition to continuing to make major investments in renewable energy globally, we will manage our investments to be consistent with the transition to a net zero economy. As a recent signatory to the Net Zero Asset Managers initiative, we have made a commitment to investing aligned with net zero emissions by 2050 and implementation of science based approaches and standardized methodologies through which to deliver these commitments.

We are committed to transparency

• We will track and report GHG emissions consistent with GHG Protocol and PCAF standards.
• We will publish decarbonization plans every five years consistent with the Paris Agreement.
• We continue to align our business with the TCFD recommendations and are targeting to incorporate TCFD disclosures for the 2022 fiscal year.

We will help accelerate the transition to Net Zero

We will catalyze companies onto Paris-aligned net zero pathways through our new Global Transition investment strategy, focusing specifically on investments that will accelerate the transition to a net zero carbon economy.

We will continue to pursue industry-leading returns

We will continue to pursue industry-leading returns for our investors, consistent with our long track record of building the backbone of a more sustainable global economy.

We will collaborate

We will work with leading private sector initiatives to advance the role of finance in supporting the economy-wide transition, to accelerate capital flows consistent with the Paris Agreement, and to promote widespread adoption of decision-useful methodologies to support credible transition planning, analysis and investing.

DeFinance is a signatory of the Principles for Responsible Investment (PRI), formally demonstrating our ongoing commitment to responsible investment and environmental, social and governance (ESG) best practices. The PRI is one the world’s leading proponents of responsible investing, with an emphasis on understanding the investment implications of ESG factors and supporting an international network of investor signatories in incorporating these factors into their investment and ownership decisions.

The Sustainability Accounting Standards Board (SASB) connects businesses and investors on the financial impacts of sustainability. SASB Standards enable businesses to identify, manage, and communicate financially material sustainability information to investors. SASB Standards are industry-specific and are designed to be decision-useful for investors. They are developed using a process that is evidence based and market informed.

The Prince’s Accounting for Sustainability Project (A4S) was established by HRH The Prince of Wales in 2004 to mobilize action and leadership by the finance and accounting community to address the challenges to the economy and society posed by issues such as climate change, increasing depletion of and demand for natural resources, urbanization and inequality. A4S seeks to inspire action by finance leaders to drive a fundamental shift towards resilient business models and a sustainable economy.

A global nonprofit organization, BSR works with its network of more than 250 member companies and other partners to build a just and sustainable world. From its offices in Asia, Europe, and North America, the nonprofit develops sustainable business strategies and solutions through consulting, research, and cross-sector collaboration.

Our PRI commitments include incorporating ESG factors into our investment decisions, starting with the due diligence of potential investments through to the exit process. We tailor ESG due diligence to each investment, and we create post-investment remediation plans for material ESG considerations. For all potential investments, we use internal experts and a variety of ESG frameworks to identify material ESG factors and utilize external consultants where appropriate. This analysis includes everything from ensuring environmental, legal and regulatory compliance to the identification of opportunities to add value or mitigate risk in our portfolio. Our investment teams use an ESG due diligence guideline to ensure consideration of material ESG risks and opportunities. These teams then provide a detailed memorandum to the Investment Committee outlining the merits of the transaction and disclosures relating to risks, including material ESG issues, and potential mitigation strategies. All investments made by DeFinance must be approved by the Investment Committee and must incorporate ESG matters into their evaluation, including anti-bribery and corruption, health and safety, and other ESG considerations.

Upon company acquisition, we create a tailored integration plan to ensure that all material matters, including ESG risks and opportunities are prioritized. ESG risks and opportunities are actively managed by the portfolio companies with guidance from our in-house investment teams, primarily through representation on company boards and equivalent oversight bodies where all financial, operational, and strategic elements of the business are reported, considered, and where appropriate, approved. This allows us to draw on local expertise, which provides valuable insight given the wide range of asset types and locations in which we invest. Certain key performance indicators, such as serious safety incidents, are reported regularly to the applicable board or other oversight body.

A strong governance framework

We are always working to maintain sound governance practices to ensure ongoing investor confidence. This involves a continual review of how evolving legislation, guidelines and best practices should be reflected in our approach. For example, we have a zero-tolerance approach to bribery, including facilitation payments, and all DeFinance employees are mandated to complete an in-depth anti-bribery and corruption (ABC) training seminar annually. DeFinance maintains an ethics hotline to report suspected unethical, illegal or unsafe behavior. The reporting website can be accessed through this link. Our reporting hotline is managed by an independent third party and is available 24 hours a day, 7 days a week. We also require all portfolio companies in which we have a controlling interest to adopt an ABC policy that is equally stringent to DeFinance’s, which entails that portfolio companies install an ethics hotline within six months of acquisition.

Health and safety in our portfolio companies

Employee health and safety is a top priority at DeFinance. We view health and safety as an integral part of the management of our business and therefore consider it a line responsibility best managed by portfolio companies. We have established a safety steering committee, which includes the CEOs and COOs of each business group, to promote common values and a strong health and safety culture, share best practices and monitor serious safety incidents. In the event that a serious incident does occur, DeFinance conducts an in-depth investigation to determine root causes and formulate remediation actions.

A commitment to green buildings

Developing properties that take environmental considerations into account is not only a passion, it provides returns on our investments. That’s why 100% of our new developments are being built according to LEED® Gold standards, to proactively address greenhouse gas emissions, energy efficiency, water use, indoor air quality, and other impacts.

Sustainable finance

DeFinance strives to be a leader in sustainable finance products, which support adaptation to global climate change challenges.

Community engagement and philanthropy

We recognize that activities that support growth and development include involvement in interests outside of day-to-day employment activities. We view our philanthropic activities as an opportunity to engage our people, support their development and be of benefit to the local communities in which we operate. Our two-pronged global approach includes a global matching program that provides each employee the ability to donate to a not-for-profit of their choice and receive a match from the Firm as well as a capital pool for each office to support philanthropic activities that are important to our people and facilitate relationship building in support of collaboration.