The UN-backed Principles for Responsible Investment (PRI) in July 2020 granted ADM Capital an A+ rating, the highest possible score, for Strategy and Governance and an A rating for Fixed Income – Corporate Non-Financial. This score is an independent recognition of ADM Capital’s attention to sustainable investing and its Environment, Social and Governance (ESG) integrated investment process.
ADM Capital was the first fund in Asia ex-Japan to sign up to UN PRI in 2008.
The PRI believes that an economically efficient, sustainable global financial system is a necessity for long-term value creation. Such a system will reward long-term, responsible investment and benefit the environment and society as a whole. The PRI works to achieve this sustainable global financial system by encouraging adoption of the Principles and collaboration on their implementation; by fostering good governance, integrity, and accountability; and by addressing obstacles to a sustainable financial system that lie within market practices, structures, and regulation.
What are the Principles for Responsible Investment?
The Principles for Responsible Investment were developed by an international group of institutional investors reflecting the increasing relevance of environmental, social and corporate governance issues to investment practices. The process was convened by the United Nations Secretary-General.
In signing the Principles, we as investors publicly commit to adopt and implement them, where consistent with our fiduciary responsibilities. We also commit to evaluate the effectiveness and improve the content of the Principles over time. We believe this will improve our ability to meet commitments to beneficiaries as well as better align our investment activities with the broader interests of society.
UNPRI Signatories’ Commitment
“As institutional investors, we have a duty to act in the best long-term interests of our beneficiaries. In this fiduciary role, we believe that environmental, social, and corporate governance (ESG) issues can affect the performance of investment portfolios (to varying degrees across companies, sectors, regions, asset classes and through time).
We also recognise that applying these Principles may better align investors with broader objectives of society. Therefore, where consistent with our fiduciary responsibilities, we commit to the following:
- Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.
- Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.
- Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.
- Principle 4: We will promote acceptance and implementation of the Principles within the investment industry.
- Principle 5: We will work together to enhance our effectiveness in implementing the Principles.
- Principle 6: We will each report on our activities and progress towards implementing the Principles.
ADM Capital and Sustainable Investing
ADM Capital’s investment process integrates Environmental, Social and Governance (ESG) aspects of a transaction from the Investment Committee Concept Note stage through to the final deal exit. We view ESG factors as material to the success of our transactions, key risk factors and also considerations that may drive our portfolio company valuations and exit prospects. Consequently, our process involves several key stages, with ESG governed by the firm’s ESG policy. This includes an Exclusion List, primarily based on those identified by the IFC. Due Diligence and ESG Action Plans for transactions are managed based on the IFC Performance Standards. The Sustainable Development Goals are a shared Global strategy addressing what we need to thrive as a planet, and accordingly, we at ADM Capital show how our work relates to the SDGs, mapping specific transactions to specific SDGs, including with the use of KPIs for monitoring.
For more information about the UN Principles for Responsible Investment visit the UN PRI website: https://www.unpri.org/