Purpose as Commercial Driver
A profitable enterprise that does not serve a purpose cannot last, neither can a purposeful but unprofitable business. As allocators and providers of debt and equity capital, we seek to support businesses that are both purposeful and profitable.
ESG
Before making any investment, we conduct rigorous ESG due diligence on them. We seek to understand the policies and processes in place at the firm and fund that we are investing in. For the firm, this considers the responsibilities, oversight, and capacity for ESG integration. For the fund, we determine the extent to which a manager integrates ESG within the investment process, how this is monitored and how it is reported to investors.
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Investments are scored on their ESG quality and then categorised into one of five categories:
Contributing towards solutions
Benefitting stakeholders
Acting to Avoid Harm
Neutral
Negative
Impact investing and ESG considerations are an integral part of the strategy, with the goal of generating positive outcomes for society and/or environment.
ESG considerations are integrated with the purpose of generating positive outcomes for society and/or the environment
ESG considerations are integrated with the purpose of avoiding material adverse outcomes for society and/or the environment
Low degree of ESG integration, but no material adverse outcomes are identified
Material negative outcomes for society and/or the environment are identified
The Tsao Family Office is a signatory of the UN Principles for Responsible Investment, as such we commit to the following:
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.