Responsibility
Responsible Investing
OUR UNIQUE APPROACH
Our long-term goal is to deliver outstanding financial returns on investments that positively contribute to social and environmental impacts.
Our activities are designed to address our three responsible investing pillars:
Environmental Sustainability: responsible involvement with the environment to avoid deterioration of natural resources and support long-term quality for future generations
Participation: creating opportunities for positive social and economic inclusion and engagement across all stakeholders and the community more broadly
Transparency: building a culture and practice of transparency and high ethical standards to build relationships of trust with all stakeholders
HOW DO WE DO IT?
We embed responsible investing practices across our four key business activities for the benefit of all our stakeholders.
INVEST
- We conduct due diligence with responsible investing integration on prospective investments
STEWARDSHIP
- We advocate for and support improved responsible investing outcomes in our investments, share our expertise with our portfolio companies and measure outcomes
OPERATIONS
- We integrate responsible investing principles into our systems and processes
INFLUENCE
- We engage with the broader investment community and share leading thinking about responsible investing principles and practices
POLICIES
Our Responsible Investing Policy describes our approach to responsible investing and stewardship throughout our entire investment process, including the assessment process used to identify and prioritise material ESG and sustainability factors in both the investment and portfolio company management stages. Our specific approach to climate change risk and opportunity integration in our investment decision making process and our own operations can be found in our Climate Policy. Both policies apply to all investments made by Adamantem regardless of sector or geography and are reviewed at least annually.
Responsible Investing in our investment and stewardship activities
Global application: ESG analysis is integrated across all asset classes, strategies and geographies
At Adamantem, we are committed to promoting environmental, social and governance (ESG) principles at the fund level, across all our funds regardless of asset class, investment mandate or geography of investment. We believe that the consideration of ESG and responsible investing factors plays an important role in delivering better performance outcomes for our investors.
ESG exclusions: We exclude certain companies from the portfolio based on particular ESG criteria
Our exclusions can be found in our Responsible Investing Policy.
Each investment opportunity is screened against these industry exclusions. Through this approach, potential companies are filtered out if they fall within any of the exclusion categories, which are based on industries we consider to be unethical, unsustainable or not aligned with Adamentem’s values. Through this approach, such organisations are excluded from the investment universe at an early stage of the investment process in a very efficient way.
However our responsible investing approach goes well beyond negative screening.
Value-driven approach: We assess the potential impacts of material ESG risks and opportunities on value drivers
Adamantem’s funds strive for economic results, while at the same time taking into account sustainability risk and ESG characteristics in both our investment decisions and portfolio company management approach.
Responsible investing, incorporating sustainability considerations, is embedded within every stage of our investment processes.
Our detailed proprietary due diligence framework has been designed to ensure we analyse a comprehensive range of ESG risks and opportunities with a clear link to the value drivers in our investment thesis.
This includes a climate risk and opportunity analysis in the later stages of our investment committee process, which uses scenario analysis (taking into account the recommendations of the Task Force on Climate-Related Financial Disclosures) to analyse how climate-related risks and opportunities might impact an investment under a range of possible climate scenarios.
We build on this due diligence to integrate ESG value creation initiatives during our ownership period, monitoring progress through reporting and adopting a continuous improvement approach.
Dedicated ESG professionals:
Our Responsible Investing Policy clearly allocates responsibility for documenting, reporting and monitoring ESG issues across our multi-disciplinary investment team, comprising professionals with financial, economic and legal expertise, and our dedicated Responsible Investing team. We collaborate on ESG integration at every stage of our investment process.
Our operations
Adamantem’s responsible investing commitments
Environmental Sustainability
Paris Agreement
We support the goals of the Paris Agreement. As part of our approach to environmental sustainability, we work with our investee companies to measure and reduce their greenhouse gas emissions, with a commitment to develop “net zero within 10 years” Scope 1 and Scope 2 emissions reduction plans for all investee companies in Adamantem Capital Partners Fund 2.
The operations of the Adamantem Capital business have been certified as Carbon Neutral by Climate Active against the Climate Active Carbon Neutral Standard (for organisations) since FY19. Adamantem Capital is a proud member of the Climate Active Network. The Public Disclosure Summary for FY21 can be read here .
We are a member of initiative Climat International, a private equity collective commitment to emissions reduction
Participation
Modern Slavery
We have voluntarily reported under the Modern Slavery Act 2018 (Cth) since FY20, to play our part in helping to reduce risks to people, improve the integrity and quality of global supply chains and strengthen our approach to responsible investing.
You can read our latest Modern Slavery Statement here
Supply Chain
We have a Responsible Procurement Policy and a Supplier Code of Conduct.
Indigenous Engagement
Adamantem has a Reflect Reconciliation Action Plan which was endorsed by Reconciliation Australia in July 2020 and has made a submission at voice.niaa.gov.au in support of an Indigenous Voice to Australia’s governments as part of the Commonwealth Government’s co-design process
Inclusion & Diversity
We have an Inclusion and Diversity Policy with long term gender targets for our executive leadership team.
Transparency
We have been a signatory to the United Nations Principles for Responsible Investment since 26 July 2017.
UN Global Compact
We have been committed to the UN Global Compact corporate responsibility initiative and its principles in the areas of human rights, labour, the environment and anti-corruption since 2021. We submitted our first Communication on Progress (as an Early Adopter) on 29 June 2022. You can read our responses here.
Reporting
We publicly release an annual Responsible Investing Report. You can read our 2021 Responsible Investing Report here.
Adamantem Capital is a member of the Responsible Investment Association Australasia
2021 Responsible Investing Report
We believe in being transparent about, and accountable for, our responsible investing commitments. Our 2021 Responsible Investing Report sets out the progress we have made in responsible investing initiatives across our investments and our business, with a dedicated section detailing our approach to climate change and the outcome of our 2021 climate risk and opportunity assessment. Through ongoing engagement with our stakeholders we look forward to continually improving our approach and sharing our learnings so others may do the same.
Please complete this form to receive a copy of the 2021 Responsible Investing Report.
