bd-capital ESG Commitment

bd-capital believes that integrating ESG considerations into its business and that of its portfolio companies is crucial to delivering long term value to its investors and to society. bd-capital carefully considers and includes ESG considerations in all stages of its investment process. As a signatory to the United Nations Principles for Responsible Investments (the “UNPRI”), bd-capital is committed to certain principles including, that it will: (i) incorporate ESG issues into its investment analysis and decision making processes; (ii) be an active owner and incorporate ESG issues into its ownership policies and practices; (iii) seek appropriate disclosure on ESG issues by portfolio companies; (iv) promote acceptance and implementation of the UNPRI within the wider investment industry; (v) work with others in the industry to enhance effectiveness in implementing the UNPRI; and (vi) report on its activities and progress towards implementing the UNPRI. 

bd-capital’s ESG commitment includes three key areas:

1. Origination and due diligence

• An ESG risk assessment and considerations are integrated into the due diligence and investment decision processes. 
• An initial ESG screening review outlines all of the ESG related areas of a potential investment. 
• Potential investments are assessed to determine that they have sufficient competence and resources to manage ESG considerations and where issues are identified they are addressed before an opportunity can progress, including discussions as to whether any such potential issues are in conflict with bd-capital’s ESG policy, and if so, whether any mitigating efforts can be taken to resolve such conflicts. 
• Any identified ESG-related issues that cannot be resolved will result in such opportunity not progressing further.
• Members of the bd-capital team involved in investment decision making will apply their extensive private equity and investment committee experience to overseeing ESG risk assessment in the due diligence process and ensuring that the UNPRI principles are followed.

2. Portfolio monitoring

• Portfolio companies will be supported to develop their own capacity and resources to effectively manage future risks that may have adverse ESG results.
• As part of ongoing monitoring, regular reporting on key ESG initiatives as well as predetermined KPIs relating to ESG matters will be received from portfolio companies. In addition to this an annual review within portfolio companies will be established to discuss all ESG matters.

3. Exit

• The aim is to provide full disclosure to potential buyers on the ESG work that was implemented and achieved during ownership of a portfolio company in order to offer the strongest chance for such work to be continued by the new owner.

In addition bd-capital is a signatory to the United Nations Principles for Responsible Investments (the “UNPRI”), and is committed to adhering to the UNPRI principles.

The consideration of ESG risks by employees is important in the advancement of a career at bd-capital. bd-capital is keen to ensure that all employees are fully aligned with the bd-capital ESG Commitment and adherence to such policy will be considered in every individual’s performance assessments. Such performance assessments will be linked to and impact the remuneration of employees.

bd-capital does not currently consider the adverse impacts of investment decisions on sustainability factors within the meaning of the Sustainable Finance Disclosures Regulation (the "SFDR"). While ESG considerations are integrated into bd-capital’s investment process as outlined in the bd-capital ESG Commitment, the detailed rules underlying the SFDR will require bd-capital to ascertain the availability of the data expected to be reported under the new requirements of the SFDR. As such, the position will continue to be monitored and reviewed by bd-capital as the underlying rules are finalised.

The disclosures above are in accordance with regulation (EU) 2019/2088 relating to Sustainable Finance Disclosures Regulation (the SFDR).   Product-level disclosures pursuant to Article 10(1) of Regulation (EU) 2019/2088 are available by following the link below.