Responsible investing through ESG

Our belief

At Wren House, we believe that a key element of ensuring sustainability is through a thoughtful approach to historical and emerging environmental, social and governance (ESG) challenges. In our portfolio companies, we see the impact of rapid changes in the expectations and demands on them as a result of changing environmental forces, declining resources, constantly evolving social pressures and increasingly active regulators and governments.

Wren House is committed to responsible investing. We do this by integrating ESG assessments into our investment process to identify issues early. We also seek investment partners who share our values and investment approach, and work alongside our portfolio companies to put in place leading practices in response to risks that are identified during regular reviews of ESG as part of our Asset Management process.

As a firm, we also believe that we should behave as we expect our portfolio companies to. We apply the same ESG principles to our own business and have a strong culture of responsibility and integrity in our interaction with our investors, colleagues and portfolio companies.

Creating long-term sustainable value in companies through responsible behaviour in relation to environmental practices, the treatment of employees, customers and suppliers, and leading transparency and governance practices makes good business sense. We also believe that this will drive superior results.

Our approach

We use our ESG framework at all stages in the transaction lifecycle to identify risks and opportunities.

Working with our portfolio companies

We are committed to partnering with our portfolio companies to bring our investment strength, operational capabilities and long-term ownership model to bear to support innovative answers to ESG challenges. As a number of the challenges our portfolio companies face are similar, we seek opportunities to share best practice across our portfolio companies in order to enhance their ability to respond to ESG issues and improve overall performance and sustainability.

Using our ESG framework, we will work with our portfolio companies to identify ESG risks within their companies and associated supply chains, and put in place relevant mitigating actions. Given the rapidly changing environment, we expect our portfolio companies to continuously improve their approach through a programme of audit and review, and encourage them to achieve relevant associated certificates and awards to demonstrate their credentials. We also seek to align incentive structures with demonstrated good practice against ESG principles.

Network of external advisors

We work closely with our advisors at all stages of a transaction to identify and mitigate risks associated with ESG. Our portfolio companies are also directly engaged with the organisations that set the standards, including, for example, GRESB and ISO.

ESG in Action