At Select Alternative Investments, we believe that responsible investing is an important element of the services we offer to our investors and a valuable point of differentiation for those willing to invest in private markets. Acting as an arranger of multi-asset and global investments, Select embraces a holistic approach to sustainable investing, considering industry, market, and national differences across our investment universe.
We perceive ESG as an extra dimension within the conventional investment process that does not require compromising on traditional financial goals while constructing a more sustainable portfolio. Select has a strong conviction that investments rooted in responsibility are strategically poised to harness the benefits of emerging regulatory, environmental, demographic, and technological shifts. Additionally, such investments also demonstrate greater resilience in the face of diverse challenges, spanning from corporate shortcomings to economic uncertainties and climate-related hazards.
Select has been a signatory to the UN Principles for Responsible Investment (“PRI”) since early 2020, committing to the incorporation of ESG factors into its investment process and to annual UN PRI reporting with the goal of providing visibility on our responsible investment practices and progress.
Select developed a proprietary ESG framework and methodology suitable for our investment universe and based on a best practice approach to measuring its ESG footprint. Select aspires to incorporate ESG considerations throughout the entire investment lifecycle, from initial screening to exit.
Our comprehensive scoring system evaluates the ESG performance of current and future investment by allotting a rating ranging from A to D, where “A” stands for an exemplary ESG performance and “D” indicates subpar results.
The framework is designed to evaluate the commitment and effectiveness of project partners to address each ESG component. The sub-scores for each specific category are then aggregated into the final score by applying relevant industry weights. Select derives its industry weights from the indicative ESG category weights provided by Refinitiv.
Our current portfolio has achieved a commendable B grade despite Select being in the initial stages of ESG policy implementation. Given our solid performance at the outset, Select is confident that our score will progressively improve over time with growing awareness and efforts.
Select has dedicated personnel in the investment team responsible for the identification of ESG-related risks and opportunities. The ESG lead contributes by assessing potential investments while also monitoring and reporting on the ESG performance of ongoing projects. Our aim is to seamlessly integrate ESG analysis into our investment underwriting and portfolio construction processes. We are committed to staying abreast of evolving regulations and policies while continuing to improve our ESG framework and refining performance monitoring practices.
In addition to our internal initiatives, we maintain an open dialog with our investment and operational partners and encourage them to integrate ESG considerations into their policies to promote a collective commitment to responsible investment practices.
|• Emissions and other pollution
• Resource use
• Innovation and adaptation
|• Product responsibility
• Community impact
• Human rights
|• Anti-bribery and corruption
• Management, board diversity and structure
• CSR strategy, ESG reporting and transparency