Increased engagement with portfolio companies
Increased engagement with corporate borrowers, directly through company management, sponsors or arrangers in financing transactions. This leads to increased awareness, transparency and requirement on borrowers to provide ESG related information, and higher scrutiny over borrowers ESG practices and hurdle for investment approval.
New borrower questionnaire used in deal due diligence
Introduction of a structured ESG questionnaire to the due diligence process, where each borrower is asked to answer ESG questions and provide supporting policies and information. Questionnaires are tailored to each borrower based on the industry in which they operate and are key inputs into Revolution’s ESG and credit assessment process and a starting point for further engagement as appropriate.
Introduction of LBO ESG scorecard and LBO ESG rating
Addition of structure to Revolution’s ESG assessment for all Leveraged Buyout (LBO) investments through introduction of ESG scorecard and ESG rating which now forms part of the credit assessment. The scorecard covers industry as well as borrower-specific considerations and highlights key factors in Revolution’s ESG assessment. It assigns a risk rating to each underlying factor, building up to E, S and G scores, which form into an overall ESG rating for each investment.
Formal incorporation of climate change & modern slavery
The consideration of climate change and modern slavery issues in the investment process has been formalised with dedicated sections on these areas in the scorecard and ESG rating.
Member of ASF Investor Subcommittee developing improved Asset Backed Securities (ABS) issuer ESG disclosures
Participant in the Australian Securitisation Forum (ASF) ESG Working Group tasked with developing a “Market Guideline” to assist the securitisation market adopt practices relating to ESG and ESG disclosure. The objective of the Market Guideline is to provide originators, issuers, investors and other intermediaries a reference point for developing ESG practice in securitisation which enhances transparency and comparability in the Australian market.