ADM Capital Sustainability
For over two decades, ADM Capital has witnessed Asia’s profound economic transformation and the progress out of poverty for many millions. The dramatic shift to production in Asia has put immense strain on our ecosystems, depleted our natural resources and pushed planetary boundaries beyond levels deemed safe.
Changes to our increasingly erratic and warming climate have been recorded and these are, in part, driven by human actions, according to the scientific community. This was most recently made abundantly clear in a 2018 Intergovernmental Panel on Climate Change (IPCC) report, which indicates that greenhouse gas (GHG) emissions are at historically high levels and are “extremely likely” to be the dominant cause of changes to the climate. The report continues that, if left unchecked, the impacts to our economy, environment and society may be significant, representing a global risk to markets and communities. Consequently, as a firm, we support the objectives of the Paris Agreement on climate change.
At ADM Capital we view Environmental, Social and Governance (“ESG”) integration as part of our fiduciary duty and believe that as a fund manager, we have an important role to play in supporting our portfolio companies’ social and climate outcomes. Integration can mitigate potential environmental and social risks that would otherwise reduce an investee company’s financial viability and also identify environmental business opportunities that would enhance an investee company’s financial viability. Our ESG integration is embedded in our business and governance processes through the Environmental and Social Management System (ESMS), which is central to our overall risk management framework. The ESMS guides the investment decision-making approach from concept note through to exit and lays out the process by which we assess and control the risks associated with a financial transaction.