In accordance with current best practice, Melior has adopted a commitment to responsible investment, with particular focus upon Melior’s Environmental, Social and Governance (“ESG”) processes. Our approach to responsible investing involves incorporating ESG factors not only into decisions about what to invest in, but also into the role we play as sponsors of companies. We believe that ESG issues can affect the performance of investment portfolios and it is therefore in the best interests of our investors to incorporate ESG issues into our investment analysis and decision-making processes. We also recognise that applying these processes better aligns our investments with the broader objectives of society and thus will lead to better returns over the longer term.
Our approach to implementing responsible investing across the investment process includes:
- Identifying ESG issues during our investment analysis and due diligence at the deal sourcing stage;
- Incorporating material ESG issues into the decision-making processes including the investment memorandum and negotiation of the investment agreement; and
- Managing ESG issues during the monitoring of portfolio companies with the intention of reducing risk and enhancing company value.