Entrepreneur First recognises that sustainability risks are considered to have a material impact on investment valuation. EF is therefore committed to integrating sustainability risks in investment decision-making processes and financial advice. The framework for sustainability risk-integration at EF includes both negative screening against controversial sectors such as weapons, and the provision and consideration of certain sustainability risk data at the investment committee.
Negative screening – We perform negative screening against our investment suitability checklist ahead of each investment decision, to ensure that any red flags are identified at an early stage. The investment suitability checklist is reviewed and updated for each of our funds, based on exclusions criteria determined by EF as well as by our investors.
Sustainability risk data – Our investment committee panel is provided with specific ESG and sustainability-risk data which are considered in investment decisions. The relevant data is derived from an ESG analysis of a company’s sector, operations, and objectives.
EF is currently conducting a review of its ESG policy which sets out further details of the framework for sustainability risk integration at EF.