Stonebridge Capital’s ESG Policy
Our Purpose
Stonebridge Capital (hereinafter referred to as the “firm”) aims to maximize financial return for our investors, and
environmental and social values for our stakeholders. In addition, we seek to promote sustainable growth of our
employees, investors, business partners, and even the wider community by integrating the responsible investment
principles into our day-to-day operations and investment process.
Principles for
Responsible Investment
Stonebridge Capital signed the United Nations’ Principles for Responsible Investment (UN PRI) to contribute to the
implementation and dissemination of the principles within the investment industry, and practice them throughout all
stages of the investment process.
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01
We will incorporate ESG issues into investment analysis and decision-making processes
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02
We will be active owners and incorporate ESG issues into our ownership policies and practices
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03
We will seek appropriate disclosure on ESG issues by the entities in which we invest
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04
We will promote acceptance and implementation of the principles within the investment industry
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05
We will work together to enhance our effectiveness in implementing the principles
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06
We will each report on our activities and progress towards implementing the principles
Responsible Investment
Strategies
We seek to create both financial and non-financial values for portfolio companies and adopt responsible investment
strategies in the investment process. Our main strategies are negative screening, ESG integration, and corporate
engagement and shareholder actions. Additionally, sustainability-themed investing can be adopted to comply with fund
agreements/articles or address the needs of the limited partners.
Screening
Integration
& Shareholder Action
Themed Investing
ESG Governance
To promote the effective implementation of responsible investment, Stonebridge Capital has formed organizational units
dedicated to the ESG Governance. The ESG Committee, a decision-making body chaired by the Chief Risk Management
Officer (CRO), is responsible for policy-making, management, and supervision of the firm’s responsible investment
activities. In addition, the ESG Team was organized to facilitate ESG integration throughout the firm. The responsibility of
the team extends to providing ESG due diligence reviews and strengthening internal ESG capacity.
Chief Risk Management Officer (CRO)
Policy-Making, Management and Supervision
ESG due diligence reviews
Strengthening internal ESG capacity
ESG
Management Process
Stonebridge Capital integrates and practices responsible investment principles throughout the deal cycle :
from deal sourcing, deal evaluation to investment decision, fund ownership period to exit.
Deal Sourcing
Deal Evaluation
Fund Ownership
Exit
In the deal sourcing phase, the initial screening of the target companies is carried out through negative screening
In the deal evaluation phase, ESG risks and opportunities of the target companies are identified through ESG Checklist and ESG due diligence. Besides, company-specific ESG tasks are set
Throughout the fund ownership period, we support our portfolio companies with the implementation of ESG tasks derived from ESG due diligence and endeavor to practice the principles of responsible investment
At the exit phase, we will provide ESG information collated during our investment periods to potential buyers
Stewardship Code
In order to enhance the mid- to long-term value and sustainable growth of investee companies and further the mid- to
long-term interests of their clients and ultimate beneficiaries, institutional investors should comply with the Principles
stated below.
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01
Institutional investors, as a steward of assets entrusted by their clients, beneficiaries, etc, to take care of and manage, should formulate and publicly disclose a clear
policy to faithfully implement their responsibilities. -
02
Institutional investors should formulate and publicly disclose an effective and clear policy as to how to resolve actual or potential problems arising from conflicts
of interest in the course of their stewardship activities. -
03
Institutional investors should regularly monitor investee companies in order to enhance investee companies’ mid- to long-term value and thereby protect and raise
their investment value. -
04
While institutional investors should aim to form a consensus with investee companies, where necessary, they should formulate internal guidelines on the timeline,
procedures, and methods for stewardship activities. -
05
Institutional investors should formulate and publicly disclose a voting policy that includes guidelines, procedures, and detailed standards for exercising votes in a
faithful manner, and publicly disclose voting records and the reasons for each vote so as to allow the verification of the appropriateness of their voting activities. -
06
Institutional investors should regularly report their voting and stewardship activities to their clients or beneficiaries.
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07
Institutional investors should have the capabilities and expertise required to implement stewardship responsibilities in an active and effective manner.