Integration of sustainability risks in investment processes
Entrepreneur First is a signatory to the United Nations Principles for Responsible Investing (UNPRI) and includes environmental, social and governance issues (ESG) in decision-making, investing, and monitoring processes where appropriate. ESG related factors are one of many factors that Entrepreneur First considers when evaluating an investment decision.
Further, 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.