Monitoring & Engagement
ESG Incident Monitoring
Azalea requires all serious ESG incidents involving a PE fund or its underlying portfolio companies that result in a material adverse environment or social impact or material breach of law to be reported to Azalea in a timely manner.
We supplement this monitoring by using RepRisk1 to scan for potentially material ESG incidents on the GP and their underlying portfolio companies. Where an incident is deemed pertinent and material, the investment team will reach out to the GP to understand the actions they have taken.
Annual GP Survey
We send an annual survey to our GPs across our enterprise portfolio of investments to assess the depth of their environmental risk management practices. We also invite our GPs to elaborate on how their responsible investment practices have evolved.
GP Engagement
With valuable inputs from our pre-investment due diligence, Annual GP survey, investment portfolio emissions, sustainability reports and ongoing RepRisk monitoring, we have a rich body of knowledge which can be tapped on to form a view of the GP’s ESG maturity. These data points can then be used by our investment team to prioritise engagement with our GPs and provide them with an effective feedback loop.
1. RepRisk uses AI and advanced machine learning to screen over 100,000 public sources daily and in 23 languages, to systematically identify any company or project associated with an ESG risk incident. RepRisk provides metrics mapped to over 100 ESG risk factors including environmental issues such as Climate change and GHG emissions, Pollution (global and local), Impact on landscapes/ ecosystems/ biodiversity, Overuse and wasting of resources, Waste issues and Animal mistreatment.