Sustainability Governance
A clear tone from the top, establishing responsibility and accountability over sustainability at Azalea
The Azalea Board
The Azalea Board oversees Azalea’s overall strategic direction, which includes our sustainability strategy.
Our management team keeps the board members apprised of industry and regulatory developments, our progress against the sustainability strategy as well as any significant emerging risks and material risk events.
Azalea’s Environmental, Social and Governance (“ESG”) policy sets the tone for the consideration and management of ESG issues in our investments and business practices.
Senior Management
The Senior Management team ensures the execution of the sustainability strategy by:
Instituting Azalea’s Investment Management policy and ESG Policy, which embeds ESG considerations throughout the investment cycle
Establishing a Sustainability Team to manage sustainability risks and promote sustainability best practices
Equipping respective teams with tools and resources to identify, assess and monitor exposures to sustainability risks and opportunities
Exercising adequate and effective oversight through quarterly risk discussions and portfolio monitoring, reviewing for exposures to sustainability risks and assessing the resilience of the investment portfolios
3 Lines of Defence
We apply three Lines of Defence in risk management to identify, assess and manage sustainability risks and opportunities.
Investment Team
Responsible for the implementation of the Investment Management and our ESG policy. This extends from pre-investment due diligence through to post-investment monitoring and engagement of our underlying GPs. The Investment Team is supported by the Sustainability Team that assists with the ESG analysis during the due diligence stage and ongoing risk management, including assessing any ESG incidents reported by any GP in the Azalea portfolio.
Sustainability Team & Operational Committee
The Sustainability Team is also responsible for driving improvements to Azalea’s responsible investment activities. The team keeps abreast of market and regulatory developments to share learnings with the wider team as well as ensure that processes are in place to meet compliance requirements.
The Operational Committee reviews the results of operational due diligence conducted and provides independent review and challenge. The financial, operational and ESG analysis is then presented in an investment memorandum for approval by an Investment Committee.
Internal Audit
Independently assesses whether key risks have been identified and reported. Internal Audit also assess the adequacy and effectiveness of internal controls.
