ESG Review 2023: Equistone continues ESG journey

ESG is now fundamental to how the Equistone funds invest. Over the past year, the Equistone funds continued to make real progress as a responsible investor and worked closely with the portfolio companies to support them in improving ESG performance. In the third annual ESG Review, the Equistone funds set out their approach to responsible investment, outline how they integrate ESG across the investment lifecycle and provide an overview of the specific initiatives they are implementing to drive progress at both company and portfolio level.

Ambitious ESG Agenda as a Fundamental Pillar
Considering ESG factors at every stage of the investment lifecycle has been a key focus for the Equistone funds and has guided the strategy for a number of years now. With a great deal of dedication and a proven collaborative approach, the Equistone funds, together with the portfolio companies, were able to significantly strengthen key ESG initiatives and sustainably expand their agenda in this area over the past twelve months. Led by dedicated ESG managers Sophia Nicol, Diane Vignalou and Jessica Clavette, who were first brought on board in 2022, over the past year the Equistone funds have: 

• improved portfolio-wide data collection and analysis by using a dedicated ESG software platform for the first time.
• strengthened collaboration with the portfolio companies, through targeted benchmark analyses within the portfolio as well as deep-dive workshops. The review outlines how these partnerships have driven progress at portfolio companies, including BOAL, BUKO Traffic & Safety, Heras and United Initiators.
• set ambitious climate targets at both company and portfolio level, which are aligned with the framework established by the Science-Based Targets initiative (SBTi).
• brought our Responsible Investing & Stewardship Policy in line with best practice and activated stronger ESG governance.

Sustaining the Success Trajectory in 2024
Since 2023, the Equistone funds have also become signatories of the UN Global Compact, further underscoring their commitment to responsibility and leadership. In the current year, the Equistone funds aim to build on this momentum and have set ambitious ESG goals. The focus will primarily be on enhancing risk management, particularly with respect to climate risks, as well as addressing biodiversity. Additionally, the diversity and inclusion program, along with portfolio engagement, will be elevated to the next level across Europe.