Our Responsible Investment Philosophy

Sustainability is a key focus at Revolution. We recognise the importance of ESG and apply our ESG philosophy to the investment process and to the portfolio companies seeking to access capital, which helps us to minimise risk and promote sustainability. Accordingly, we continuously review and strive for improvement by strengthening practices in line with the Principles of Responsible Investing (PRI) as well as industry best practice.

Steve Sutinen, Portfolio Manager discusses the challenges and opportunities when integrating ESG factors into Australian and New Zealand private debt.

In accordance with our commitment to continuous improvement, Revolution conducts a review of its ESG Policy on an annual basis.

>  Download the current Responsible Investment Policy – August 2023

>  View our continuous improvements in the latest
‘ESG: 2022-23 Year in Review’

ESG GUIDING PRINCIPLES

Revolution acknowledges its duty in the stewardship of capital

As an investor, we play a key role in directing capital resources within the economy. By allocating, managing and providing oversight of capital we aim to create long term value for clients and their beneficiaries, as well as the broader economy and society.

ESG factors directly influence the ability to create or preserve economic value

We believe that the lack of focus on ESG principles by portfolio companies may potentially impact an organisation’s ability to create or preserve economic value, as well as diminishing environmental and social value for itself, stakeholders and the wider community.

ESG risks are a core component of an overall credit assessment

Holistic risk assessment is fundamental to any credit assessment. Well-managed businesses are less likely to face unanticipated risks, which in turn lowers the risk of default or a rating downgrade. We aim to avoid investments in companies that present higher ESG risks – those have the potential to suffer underperformance as well as present risks to the wider community.

Private markets allow for engagement and positive influence

We actively encourage portfolio companies to adopt sound ESG practices with the aim to improve the governance and sustainability of businesses, ultimately leading to better performing investments. What’s more, they have the potential to deliver value to our investors and positively contribute to the broader objectives of society.

Revolution is committed to the Principles of Responsible Investment

We formally committed to the PRI and became a signatory in June 2019 and a signatory for the ESG in credit risk and ratings in August 2022.

Climate Change

Modern Slavery Statement

We acknowledge the existence of climate change and our climate awareness extends to our investment process through considering the following factors:

• physical climate risk
• transition risk
• incorporating evolving views of the wider investment community and society.

We are cognisant that climate change is not only a source of investment risks but also opportunities. We will also consider potential positive implications of green assets in our investment process.

Further, we recognise our own corporate social responsibility as a steward of capital and the role it plays within the broader economy and society, with respect to capital allocation.

We believe modern slavery risk can have a potential material contribution to overall credit risk.

Companies that engage in poor labour practices carry high social and governance risks, and as such we integrate labour risk considerations when assessing each investment with a view that these risks may result in business underperformance and in turn lead to potential default. We mitigate this risk by focusing exclusively on investments in companies and issuers operating in developed markets in Australia and New Zealand.