Halder seeks to enhance the long term value of its portfolio companies also through improvements in the field of Environmental, Social and Corporate Governance (ESG) matters. This includes the improvement of the risk-return-profile of its investments, the reduction of risks resulting from ESG issues as well as cost savings resulting from (operational) optimizations in the area of ESG.
ESG, amongst other, covers topics such as
Halder's analysis and monitoring of potential and actual portfolio companies will take the following guidelines into account.
The ESG subjects being most relevant to a target company will be investigated by Halder in its due diligence as part of the acquisition process and will be recognized in its investment decision. Identified ESG issues do not necessarily prevent Halder from investing in a company but will be included in Halder's list of points of attention requiring corrective action and will be part of the valuation and risk assessment of a potential target.
Investments in specific industries are excluded in principle only, when so agreed with Halder's investors. Current exclusions, amongst others, comprise the tobacco industry, the gas and oil exploitation industry and companies generating the majority of their revenues through the production and sale of modern weapons.
In addition, Halder applies principles of responsible investment to its portfolio companies. Halder sensitizes portfolio company management for ESG issues being relevant for the individual portfolio company and requests portfolio companies to continuously improve their performance and/or situation with regard to such issues.
The improvements achieved are being measured by key performance indicators (KPI) and management of the portfolio companies reports the development of the KPIs periodically to Halder. Halder in turn reports the portfolio companies progress in the area of ESG both to Halder's investors and the UN Secretariat.