Responsibility

Sustainability and ESG policies are an integral part of our business model

ESG
We are committed to supporting our portfolio companies on their ESG journey and helping them build a solid foundation with robust governance structures.

As an Article 8 Fund under SFDR, Halcyon promotes

characteristics

Environmental or social characteristics securing contribution to an environmental or social objective

significant

Compliance with the “do no significant harm” principle

governance

Adherence to “good governance”

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Halcyon is committed to its basic principles of responsible investment

principles 1

Invest in companies that do not cause further environmental harm

principles 2

Offset carbon emissions through verified projects and collaborations with environmental organizations

principles 3

Encourage diversity and inclusion within the boards of portfolio companies and the fund

principles 4

Ensure commitment to equality

principles 5

Collaborations with non-profit organisations

principles 6

Established independent non-executive Investment Committee to evaluate investment and divestment recommendations

principles 7

Ongoing training and education to board members, employees, and portfolio companies on ESG principles, and governance best practices

principles 8

Implement a robust risk management framework that considers ESG risks and opportunities

Halcyon’s ESG Methodology

To deliver our sustainable business model, we have developed a well-defined ESG value creation framework, across all stages of the investment process. From initial screening and due diligence to exit, we integrate ESG to support decision-making at each stage, where relevant and appropriate.

Initial screening

Due Diligence

Monitoring and engagement

Exit

  • Consideration of financially material ESG factors alongside traditional factors in investment decisions
  • Adherence to environmentally safe policies, alignment to good governance principle and non-violation of global standards
  • Identification of measurable positive social and environmental outcomes alongside a market-rate financial return
  • Implementation of proprietary ESG due diligence checklist processes
  • Engagement of advisors and ESG experts to assist in conducting ESG due diligence
  • Use of business intelligence tools for the assessment of ESG related risks and management standards
  • Close collaboration with management teams to improve the ‘value fundamentals’
  • Continuous monitoring of our portfolio companies’ ESG progress, through external assessments and non-financial reporting
  • Provision of guidance to investees in evaluating and managing ESG issues
  • Estimation of valuation premiums for business models and competencies that reflect ESG best practices
  • Support our investees to integrate, measure, and communicate their bespoke approach to ESG, as these characteristics increasingly valued in investment exits
  • Disclosure of ESG information, gathered through Halcyon Fund ownership period, to potential buyers at exit stage