At Empower Capital, we believe that adopting and constantly applying the Environmental, Social, and Governance (ESG) standards is an essential part of the long-term success of any business. In line with this belief, we have made a public commitment to formally incorporate the consideration of the ESG criteria into our investment process.
In November 2017, we became signatory to the global and Bulgarian network of United Nations (UN) Global Compact, a strategic initiative designed to encourage businesses to embrace sustainable policies through 10 universally accepted principles, covering environment, anti-corruption, human rights and labor standards. Having around 10,000 corporate members from over 145 countries, the UN Global Compact is the world’s largest corporate sustainability initiative.
As a participant of the UN Global Compact, we are not simply supporting the 10 principles of the Global Compact, but we are also committed to integrating them throughout the investment process in our investee companies.
Managing ESG issues is incorporated in our proprietary, customized approach to investees valuation – PESA™ – designed to provide long-term strategic direction and to improve the overall transparency in their internal processes. It begins early in the due diligence process performed by Empower Capital, and continues throughout our ownership period, where we actively support companies that don’t have internal resources or expertise in this area.
Sharing best practices among companies in our portfolio is a way to help different businesses develop and improve their sustainability programs. Diminishing resources, changing consumer demands, and increased regulation are expected to pose greater challenges but also to give new opportunities. Therefore, companies that carefully manage ESG risks, respect ESG standards and are open to innovations today, should be better positioned tomorrow.
Empower Capital is committed to be a socially conscious investor, supporting the best ESG practices in our industry. Our team will keep the thoughtful approach to the ESG opportunities and challenges we face and will also continue seeking new ways to create value for our partners.