This policy sets out Tangency Capital’s (“Tangency”)’s commitment and approach to integrating Environmental, Social and Governance (“ESG”) factors into the investment process as well as across the culture and operations of the firm.
Tangency drives environmental, social and governance (“ESG”) initiatives in two ways: on a corporate level, by delivering an inclusive, carbon negative, future oriented work environment; and through our investments, by active stewardship and engagement with our portfolio companies.
Tangency believes that ESG is not only core to our investment process but also our own business culture and operation and we seek to demonstrate best practice in environmental, social and governance initiatives at a firm level.
Tangency’s ESG culture has been developed by its senior management, who maintain oversight and accountability of its approach to ESG. Tangency has established an ESG Committee consisting of senior individuals representing a range of business areas. The ESG Committee meets at least quarterly (or more if required on an ad hoc basis) and meetings are minuted.
ESG Integration within investment process
Tangency Capital drives environmental, social and governance (“ESG”) initiatives through our investments, by active stewardship and engagement with our portfolio companies. Unlike public market investors, we are in the unique position of routinely engaging with the insurance industry on underwriting practices at a very granular level. We leverage this opportunity to drive further ESG transparency across the insurance industry and then invest with those companies that deliver the most cohesive ESG approach.
Tangency Capital became a signatory to the UN-supported Principles for Responsible Investment in February 2019, i.e., within the first year of fund launch. The PRI is fast becoming a global standard for investment managers’ ESG alignment.
Through its association with the PRI, Tangency is committed to adhering to the six Principles for Responsible Investment:
Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.
Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.
Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.
Principle 4: We will promote acceptance and implementation of the Principles within the investment industry.
Principle 5: We will work together to enhance our effectiveness in implementing the Principles.
Principle 6: We will each report on our activities and progress towards implementing the Principles.
Tangency will report annually to the PRI on the firm’s responsible investment initiatives, activities and achievements and seeks to meet the standards expected by the PRI in doing so. Tangency plans to share this reporting with investors on request once it has been completed.
Tangency is a signatory to the SBAI standards. The Standards Board for Alternative Investments (SBAI) is an active alliance of alternative investment managers and institutional investors dedicated to advancing responsible practice, partnership, and knowledge across the alternative investment industry.
Firm ESG Procedures
In addition to the ESG approach deployed within the investment process, Tangency believes it is important to operate its own business in line with good ESG practices. As such, Tangency has implemented the following business initiatives across the three pillars of Environmental, Social and Governance. The ESG Committee is responsible for ESG initiatives at the management company level and is constantly seeking to improve and enhance Tangency’s own ESG culture.
Firm ESG initiatives are focused in the following areas:
Carbon Neutral Organisation
Diversity & Inclusion
Employee Wellbeing and Internal Engagement
Memberships of Industry Bodies
The ESG landscape is constantly evolving, and Tangency is keen to ensure that all staff are educated and aware of ESG developments across the investment universe. To that end, training is provided to all staff on ESG matters on an annual basis, or more if required.
The ESG Policy is reviewed at least annually.