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Minimising and managing key environmental impacts is fundamental to good environmental stewardship, and is at the core of acting as a responsible investor/business. Compliance with the appropriate regulatory framework is essential, and we expect all our portfolio companies to have the appropriate monitoring systems in place to ensure they meet all current regulatory requirements.
Beyond meeting compliance requirements, we believe there are numerous opportunities to create and deliver commercial opportunities and value through ongoing improvements to environmental management, specifically focusing on resource efficiency and energy management.
The focus and breadth of issues will be shaped by individual companies and would be expected, in most cases, to address the following operational impact areas:
A healthy culture is critical to a company’s long term value and competitive advantage. We believe that developing a culture supported by values, processes and policies, which focuses on respecting and investing in employees, contributes towards an engaged and motivated workforce. We encourage and provide the support for all our portfolio companies to:
This is not an exhaustive list and we expect initiatives in this area to be relevant to the individual business and the markets within which they operate. At the very least we would expect portfolio companies to meet industry practice in people management and benchmark themselves on a regular basis against industry peers. Health and Safety should be a key board agenda item for all portfolio companies.
At all times we expect honest and transparent trading. We require our portfolio companies to:
Good governance is vital and underpins both NVM and the performance of our portfolio companies. This starts with an effective board, and we encourage all boards to be made up of individuals with a balance of skills, backgrounds, experience and knowledge. We insist that companies have regular, structured board meetings with supporting papers, undertake regular strategic planning, and have a clear focus on the revenue opportunities and operational improvements that will drive stakeholder value. We encourage independent board chairs to promote open debate and facilitate meaningful discussions.
In addition to this, we expect our portfolio businesses to ensure that responsibility for ESG related matters is designated to an individual with suitable authority and that ESG matters are considered at board level on a regular basis, forming part of the decision making process at all levels of the business.
We recognise the importance of and the benefits that positive community engagement can bring, and promote and actively identify opportunities to participate in and support the communities within which we and our portfolio companies operate. Typical initiatives include:
We recognise that portfolio companies work with a varied number of local and national charities, and that the reasons for each engagement are unique to each organisation.
NVM is a signatory of the United Nations Principles for Responsible Investment (“UNPRI”) and has used the following six principles as a framework to develop its ESG policy across all its investment activities.
We review our continued adherence to these principles on an annual basis through evaluating activities we have undertaken in each year and identifying ways in which we can enhance our ESG risk management.
NVM reports to the UNPRI on the activities undertaken in each assessment year.