Hg’s Responsible Investment approach
ESG in the deal process
ESG is embedded into the entire deal process, from screening to exit. As a first step, we are very clear about the types of businesses we do not invest in, which are outlined in our exclusion list. During due diligence, we assess companies for compliance with relevant laws in relation to environmental, social, governance, health & safety and bribery & corruption issues. We also consider the inherent ESG risk of the company and carry out an associated ESG review
detailing risks and opportunities in relation to our Sustainable Business framework. We take an active approach to managing ESG during our ownership. This starts with a Sustainable Business onboarding and maturity assessment within the first few months of acquisition to identify areas for improvement, where Hg can support the companies to realise their ambitions within and beyond our Sustainable Business framework.
As part of our on-going engagement on Sustainable Business, each business is re‑assessed on an annual basis and we follow up to ensure appropriate actions are taken to improve as required. Face-to-face forums help our management teams to network, share best practice and receive support.
Hg’s Sustainable Business framework outlines key ESG focus areas for Software and Services companies. The framework is based on extensive research and is updated on an annual basis to reflect trends and new ESG metrics.
The framework forms the foundation of the ESG assessments we undertake with our businesses as part of our onboarding process and annually thereafter. Our assessment is extensive and covers over 150 metrics relate to essentials, employees and society.
Click on the purple, red and blue icons below to read more about Essentials, Employees and Society.