Phi seeks to identify targets in sectors where it believes that the thesis is compelling for value creation given Phi’s unique expertise.
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 implement ESG policies within its own organization and also organizations that it partners with and invests in.
The investment approach of Fund is anchored around:
Active involvement in strategy & operations, review and audit;
Sustainable value to all stakeholders;
Integration of ESG aspects into overall decision-making and investment process;
Alignment of incentives with management teams and best-in-class governance;
Integrity, transparency and trust across all business activities;
Selection and building up of the management teams, helping in developing effective relationships with portfolio companies;
Supervision of E&S management and strengthens E&S requirements, throughout the life span of investment in its Portfolios
Possibility of better exit options, its timing and terms, for future growth of the business.
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 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 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 monitor adherence in each Portfolio Company.
