Environmental, Social and Governance
We apply these non-financial factors to our analysis to identify material risks and growth opportunities. Our approach is grounded in a responsibility to our investors to be careful stewards of capital. We have long been implementing several initiatives designed to strengthen and make our companies more resilient. Many of these, like promoting sustainability and diversity, are considered core components of ESG. 89%of empirical studies find a positive link between ESG factors and the financial performance of companies.
ESG Approach Overview
ESG integration matters
Our belief that ESG integration can help us build stronger portfolios for our clients is supported by a large and growing body of evidence. Sustainable business practices are no longer optional for companies, but are becoming necessary to keep them from falling behind.
ESG integration matters
ESG factors are integrated into each investment process in a manner consistent with the underlying investment style. However, the Sustainable Investing team use the same 10-point framework and assessment process to evaluate integration across strategies.
Metrics
- research analyst/ investment due diligence
- Consideration at portfolio management / investment decision level
- Breadth of third-party ESG data
- Level of proprietary research conducted
- Company / Sector coverage
- Documentation of integration methodology
- Documentation of proprietary data and research methods
- Risk management and oversight
- Systemisation
- Ongoing monitoring and maintenance
OUR APPROACH
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 incidental to Ranieri Assets strategy since our founding. We are committed to responsible investing practices and incorporate them into all of our affairs..
In house empowerment.
It is not enough to help others in need. Social responsibility starts right at home with the thousands of people at Ranieri Assets 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.
Our ESG principles are embedded throughout our operations and help us ensure that our business model is sustainable.
- 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.
- Promoting recycling
- Printing double sided reports and presentations
- Minimizing printed materials by focusing on using electronic copies of reports and presentations.
- Removing plastic bottles from our offices
- Limiting single serve paper or plastic cups
- 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.
- Regularly convene with our ESG team to discuss the goals, strategy and management of our ESG program.
- Seek to implement governance structures that provide appropriate levels of oversight in the areas of audit, risk management, and potential conflict of interest.
- Adhering to national,state and local laws and regulation standards, prescribed.
- Align our program with sustainability reporting frameworks such as GRESB to improve overall ESG performance and increase transparency.
- 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
- Encourage employee involvement and open communication through deployment of annual employee survey, regular development programs, and annual employee performance review.
- Foster community engangement, through the development and support of charitable programes
- Promote diversity and inclusion at our firm by making available equal to everyone.
- 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.
Net Zero Commitment
We support the goal of net zero greenhouse gas (‘GHG’) emissions by 2050. Over the past 8 years, Ranieri Assets has been actively involved in building one of the largest private renewable power businesses in the world. With installed renewable generating capacity of 20 GW, we now produce more than enough green energy to power Arizona and will more than double that amount once our development portfolio is brought online. We recognize that further renewable power capacity must be rapidly scaled to replace fossil fuel generation and meet expanding global electricity demand so that the world can eliminate the over 70% of global emissions that come from final energy consumption as quickly as possible. Ranieri Assets intends to build on this leading position in renewable power and do much more to contribute to the transition to net zero:
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 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 will collaborate
We will work with leading private sector initiatives to advance the role of finance in supporting the economy-wide transition, accelerate capital flows consistent with the Paris Agreement, and promote widespread adoption of decision-useful methodologies to support credible transition planning, analysis, and investing.
As a firm, we are conscious investors and set standards for environmentally and socially inclusive investments. ESG has emerged as much more than a responsibility. It is an opportunity to build a more sustainable business and a primary differentiator to enhance relevancy and trust with organization stakeholders.
We have implemented environmental goals to help reduce carbon footprint, determine sourcing strategy and eliminate waste. We build a meaningful diversity program from a social impact lens to enhance our employee health and make lasting community changes.
On building a solid governance foundation, we are diversifying our board, enhancing business ethics, and increasing stakeholders' transparency and protective privacy.
Integrating ESG considerations into our investment process
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 asset and create post-investment remediation plans for material ESG considerations. For all possible 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 identifying 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 Ranieri Assets must be approved by the Investment Committee and 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 prioritize all material matters, including ESG risks and opportunities. The portfolio companies actively manage ESG risks and opportunities 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 appropriately, approved. This allows us to draw on local expertise, which provides valuable insight given the wide range of asset types and locations we invest in. Specific Key performance indicators, such as serious safety incidents, are reported regularly to the applicable board or other oversight body.
On building a solid governance foundation, we are diversifying our board, enhancing business ethics, increasing stakeholder transparency, and protecting privacy.
Health and safety in our portfolio companies
Employee health and safety is a top priority at Ranieri Assets. We view health and safety as an integral part of managing 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 shared values and a vital health and safety culture, share best practices, and monitor serious safety incidents. If a serious incident does occur, Ranieri Assets 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.
Ranieri Assets Plan to a Net-zero Strategy
Ranieri Assets t's Net Zero Commitment
We support the goal of net zero greenhouse gas ('GHG') emissions by 2050. Over the past eight years, Ranieri Assets has been actively involved in building one of the world's largest private renewable power businesses. With an installed renewable generating capacity of 20 GW, we now produce more than enough green energy to power Arizona. We will more than double that amount once our development portfolio is online. Ranieri Asset recognizes that further renewable power capacity must be rapidly scaled to replace fossil fuel generation and meet expanding global electricity demand so that the world can eliminate over 70% of global emissions from final energy consumption as quickly as possible. Ranieri Assets intends to build on this leading position in renewable power and do much more to contribute to the transition to net zero.
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.
Efficient Frontier originates from the Modern Portfolio Theory (MPT)
Ranieri Assets is one of the world’s leading independent asset managers. We are primarily investors before anything else.