ESG at Entrepreneur First
Entrepreneur First (“EF”,”us”, “we” or “our”) recognises that ESG factors may have a material impact on an organisation and the value of its investments, and are committed to considering ESG risk in our investment decision-making processes.
EF adopts an integrated responsible investment strategy tailored to the unusual EF programme and investment strategy. This draws on aspects of well-recognised practices such as exclusionary screening and ESG risk integration. Our processes around ESG are guided by our internal frameworks, in alignment with recognised standards, such as the UNPRI. EF has a responsible investment policy that guides and facilitates the processes around responsible investment and the integration of ESG in EF’s operational and investment strategies.
Responsible investment at EF centres on an investment strategy that integrates responsible investment considerations at Investment Committee 1 through an IC-scorecard, which covers exclusionary screening and assessed ESG-risk and impact scores.
While we acknowledge the importance of ESG factors, we maintain an investment approach that is not primarily focused on ESG considerations; that is, we are not an impact investor.
Principles of Responsible Investment
Entrepreneur First is a signatory to the Principles of Responsible Investment since June 2021. The Principles for Responsible Investment were developed by an international group of institutional investors reflecting the increasing relevance of ESG matters to investment practices. The process was convened by the United Nations Secretary-General.
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 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.
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.