The Fund recognizes that Environmental, Social (including Health and Safety) and Governance (“ESG”) aspects are among the key influencers of the value of any company. Phi is thus committed to implementing ESG policies within its own organization and also within organizations that it partners with and invests in. The investment approach of the Fund is anchored.
Phi recognises that ESG issues can have an impact on the performance of Portfolio Companies and can also adversely impact the Fund’s returns, with attendant a reputational risk and/or in legal liabilities. The Fund also recognizes that a well thought ESG strategy, can result in creating value-addition opportunities in the investment.
As part of the investment approach, Phi will follow relevant standards for evaluation of the ESG impact of its current & potential Portfolio Companies before making any recommendation for its investment decisions (ESMS) and through the implementation of an Environmental & Social Management System (ESMS).
Given its active operational involvement, Phi is fairly suited to implement ESG considerations in its investee companies. The Code of Responsible Investing of Phi will ensure ESG analysis and management are not isolated from the other investment processes such as commercial, financial and legal due diligence and portfolio company oversight. Phi promotes adherence to these principles and monitors adherence in each Portfolio Company.
Climate Change Assessment & Monitoring
In the face of escalating environmental challenges, Phi is increasingly recognizing the imperative to integrate climate change considerations into portfolio strategies. The growing awareness of the profound impact climate-related risks and opportunities can have on the long-term financial performance of companies has led the Fund to adopt a more proactive and sustainable approach.
By incorporating climate change considerations into investment decisions, Phi aims not only to mitigate potential risks associated with regulatory changes and physical impacts but also to seize opportunities arising from the transition to a low-carbon economy. The Fund is also committed to tracking and reporting what their portfolio companies do with investments earmarked for climate.
