EF is committed to responsible investment practices, which include considering environmental, social, and governance (ESG) considerations in our investment processes, decision making and ownership practices which are clearly defined and documented.
Our processes around ESG are guided by our internal frameworks, in alignment with recognised standards, such as the UNPRI.
Our Investment Committee is presided over by our Chief Executive Officer and their mandate is to develop a global approach to investment issues which takes into consideration controversial sectors from a risk viewpoint through the exclusion of investment in items such as weapons as well as taking a wider view of ESG issues in investments processes, from a performance and risk management perspective.
Among other initiatives, under development is EF’s comprehensive responsible investment strategy to include being a resource for the companies we create as well as providing reporting to our investors on the ESG breakdown of our investment portfolio.
Entrepreneur First is a signatory to the Principles of Responsible Investment since June 2021.
As institutional investors, we have a duty to act in the best long-term interests of our beneficiaries. In this fiduciary role, we believe that environmental, social, and corporate governance (ESG) issues can affect the performance of investment portfolios (to varying degrees across companies, sectors, regions, asset classes and through time).
We also recognise that applying these Principles may better align investors with broader objectives of society. Therefore, where consistent with our fiduciary responsibilities, we commit to the following:
Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.
Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.
Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.
Principle 4: We will promote acceptance and implementation of the Principles within the investment industry.
Principle 5: We will work together to enhance our effectiveness in implementing the Principles.
Principle 6: We will each report on our activities and progress towards implementing the Principles.
The Principles for Responsible Investment were developed by an international group of institutional investors reflecting the increasing relevance of environmental, social and corporate governance issues to investment practices. The process was convened by the United Nations Secretary-General.
In signing the Principles, we as investors publicly commit to adopt and implement them, where consistent with our fiduciary responsibilities. We also commit to evaluate the effectiveness and improve the content of the Principles over time. We believe this will improve our ability to meet commitments to beneficiaries as well as better align our investment activities with the broader interests of society.
We encourage other investors to adopt the Principles.
The Sustainable Finance Disclosure Regulation (”SFDR” or “the Regulation”) applied from 10 March 2021. The Regulation requires financial market participants and/or financial advisers such as Entrepreneur First (the “firm”) to provide information to investors with regards to the integration of sustainability risks, the consideration of adverse sustainability impacts, the promotion of environmental or social characteristics, and sustainable investment.
A ‘sustainability risk’ means an environmental, social or governance event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the investment.
Set out below are the following website disclosure requirements contained in the Regulation:
Sustainability Risk Policy (Article 3) – please see here.
Principal Adverse Sustainability Impacts Statement (Article 4) – please see here.
Remuneration Policy – Sustainability Risks (Article 5) – please see here.