TRG recognizes the importance of environmental, social and governance (ESG) matters, and their contribution to the value of businesses today.
By adopting an ESG policy, the Firm believes that we are not only protecting our investments from different types of risks, but also creating long-term value for our investments.
- We understand that the nature and materiality of ESG issues vary widely across asset classes, sectors and geographies. Given our broad investment mandate as a firm, we consider ESG issues in the context of each investment and specific fund objectives.
- Accordingly, the crucial components of the policy are the identification of potential ESG issues, evaluation of the nature and potential impact of these issues, and the elimination or mitigation of any concerns, where possible.
- Beyond risk management objectives, particularly in emerging markets, incorporation of ESG considerations as an essential component of the investment process can also be a key catalyst to deliver strong investment returns.
- Thus, we also strive to utilize ESG initiatives to increase portfolio company performance, making them more attractive to buyers.
Many issues are complex and thus we look to actively engage environmental impact consultants, independent engineers, market consultants, and legal counsel on an as needed basis to complement our own internal analysis.