Measuring Progress: Key Performance Indicators

The Challenges

As our Firm and our investments have become increasingly global and diverse, it can be challenging to ensure that our ESG management approach is both broad and nimble enough to be thoughtfully applied in every case. Given the fluidity of the holdings in our portfolio and various levels of influence and interaction across our asset classes, it is difficult to apply many traditional ESG performance metrics. In addition, the important work of documentation in diligence and management is not an insignificant task.

Our Approach

The framework for tracking our ESG management performance is aligned with the United Nations-backed Principles for Responsible Investment (PRI). It is largely qualitative in nature as it focuses on the integration of ESG principles throughout the investment process.

While defining relevant key performance indicators (KPIs), we also identified several KPIs that, while potentially relevant, we believed would not accurately communicate our progress. We welcome feedback from our partners and stakeholders as we continue to refine our KPIs.

This table seeks to show the various ways in which we have made progress against our goals.

Identification of ESG risks and opportunities pre-investment (PRI I) Management of ESG issues during portfolio management (PRI II) Green Solutions Platform (GSP) expansion (PRI II) Employee engagement program expansion (PRI II) Responsible Sourcing Initiative (RSI) expansion (PRI II) Transparency and stakeholder engagement (PRI III) Promotion of responsible investment (PRI IV) Collaboration with partners (PRI V) Transparency and reporting (PRI VI)