ESG Overview

Genstar Capital believes that responsible corporate behavior with respect to environmental, social and governance (ESG) factors can mitigate risk and have a positive influence on long-term financial performance.

Genstar became a signatory of the United Nations backed Principles of Responsible Investment (PRI) in 2015 and members to the Guidelines for Responsible Investment developed by the American Investment Council (formerly the Private Equity Growth Capital Council) in 2007.  In accordance with PRI requirements, Genstar reports publicly on its responsible investment activities each year including the disclosure of its PRI Transparency Report (our latest report available here).

To the extent consistent with our fiduciary duties, our fund private placement memoranda, and our limited partnership agreements with our investors, Genstar’s investment process is based on guidelines that are principally consistent with the Guidelines for Responsible Investment developed by the American Investment Council (formerly the Private Equity Growth Capital Council), UN Guiding Principles on Business and Human Rights, the Ten Principles of the UN Global Compact, and the Financial Standards Board (FSB) Taskforce on Climate-Related Financial Disclosure recommendations.

Investment Process

Genstar will consider ESG factors as part of the investment process. Considerations will begin in the pre-investment phase and will continue during our ongoing monitoring of and engagement with portfolio companies.  Recognizing that the relative importance of ESG factors vary across industries, geography and time, our consideration of ESG factors is tailored to the particular investment.  Our focus is on ESG issues that are, or could become, material, to long-term financial performance, including as applicable salient human rights risks.

Genstar seeks to identify relevant ESG risks and opportunities as part of the due diligence process for each portfolio company acquisition.  Our due diligence takes into account, to the extent applicable, information from the target company, third party information and data, third party standards and guidance and stakeholder engagement.  During the due diligence process, the investment team, together with third party consultants, identify opportunities where policy development and/or implementation of ESG initiatives would add material value to the portfolio company.  At the conclusion of the due diligence process, our investment professionals share any material findings with the Investment Committee.

Genstar’s commitment to responsible investment does not end upon acquisition.  We have a formal ongoing management and monitoring program to mitigate ESG risks and invest in ESG opportunities throughout our ownership period.  As part of this program, we follow up on risks identified in due diligence.  Portfolio companies are periodically required to provide us with information on their ESG initiatives.

Investor Relations & Reporting

Genstar is dedicated to transparency in the reporting to our investors of our ESG process, its implementation and results.  We value ESG-related expertise of our investors and will make every effort to align our responsible investing goals with theirs.  Genstar is committed to making ESG progress available to our investors and will provide significant milestones achieved annually along with our goals for the future.

Genstar ESG Process

Our ESG Committee monitors this policy and the Genstar ESG process.  The ESG Committee includes senior investment, management and compliance.  The ESG Committee will at least annually review this policy and the effectiveness of our related procedures, and will recommend modifications as it determines to be appropriate.

Cooperation with the Genstar ESG process is possible through a culture that encourages collaboration, authentic relationships, transparency and accountability. Genstar is committed to volunteering as a team through contribution and effort towards disadvantaged groups, and internally making value adjustments to our carbon footprint.

All Genstar employees will attest to this policy annually.  Genstar personnel receives periodic training on the implementation of this policy, as needed.

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