As an investment management business, AAC recognize that pro-active management of Environmental, Social and Governance (ESG) issues and incorporation of an ESG policy in our investment decision process and ownership practices is in the interest of all AAC stakeholders, including our investors, portfolio companies we invest in, communities where they operate and the AAC franchise.
It is our duty to manage our corporate responsibility vis-a-vis our stakeholders, and we support and strive to adhere to industry standards, such as the Principles of Responsible Investment, while it is our core task to deliver superior financial performance. We believe that striving to superior ESG performance contributes to these goals, and can offer a source of competitive advantage for our businesses and enhances our franchise value.
AAC has the ambition to “Create a more sustainable company at exit”. To accomplish this ambition, AAC will integrate ESG efforts in every step of the investment decision-making and ownership practice. AAC aims to gain an understanding of the ESG exposure and opportunities in our portfolio and support our management teams in improving the ESG performance of their companies.
In 2013 AAC signed the internationally recognised Principles for Responsible Investment (PRI). Since then, AAC is a member of the PRI and demonstrates its commitment to responsible investment through its participation in a publicly available annual report on its responsible investment activity. An important benefit of being a PRI signatory is access to a platform where best practices are shared among responsible investment professionals.
We encourage our management teams to come up with action plans to address the relevant ESG issues and move in the direction of best-in-class in their respective industries. For each portfolio company, the CEO and an AAC Board Member will be responsible for the overall ESG policy; increasing awareness of material ESG-related risks and opportunities at Board level and implementing the setout ESG policy on company level.
On a regular basis, all AAC Board Members responsible for ESG will be present at an internal ESG meeting to discuss the current status of ESG implementation, progress made and to share best practices. AAC issues an annual ESG report to its investors, this report combines quantitative and qualitative information on the current status of ESG implementation, milestones achieved and targets set.