CCMP Growth Advisors, LP (“CCMP Growth” or the “Firm”) strives to create value in its Private Equity pooled investment funds by working with its portfolio company management teams to accelerate growth, implement operational and financial enhancements, and drive business efficiencies in line with our fiduciary duty to act in the best long-term interests of our investors and clients. Consistent with the goals mentioned above, the Firm seeks to incorporate Environmental, Social, and Governance (“ESG”) aspects as well as Sustainability Risks (as defined below) in its investment processes and considers both general and industry-specific factors, as well as material risks and opportunities, alongside broader financial, operational, and commercial factors, during due diligence and the lifecycle of an investment.
“Sustainability Risk” means “an environmental, social or governance event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the investment.”
In assessing ESG factors and Sustainability Risks during due diligence and the portfolio monitoring stages, the Firm considers a range of industry standards, including the UN Global Compact, the United Nations-supported Principles of Responsible Investment, to which it is a provisional signatory, and the American Investment Council’s Guidelines for Responsible Investment. The Firm exercises an active stewardship of its portfolio companies to drive investment returns while seeking continuous improvement on ESG matters. This approach is critical to managing interrelated factors and issues that may affect the risk profile and performance of our investment portfolio across companies, industries, regions and time periods.
The Firm believes that the fundamental driver of value to every business is its people, and is committed to promoting workforce diversity, equity, and inclusion both in our own firm and in our portfolio companies.
We are committed to continuous improvement and periodic review and update of our own policies and practices as matters relating to responsible investment, ESG, regulations, and markets continue to evolve.
For the purposes of Article 3 of European Union Regulation 2019/2088 on sustainability-related disclosures in the financial services sector dated 27 November 2019 (the “SFDR”), the above summarizes how the Firm integrates Sustainability Risks into its investment decision-making process.
The Firm has considered, and continues to consider, ESG factors in its investment process but at this time it does not plan to specifically consider the principal adverse impacts of investment decisions on sustainability factors as required by the SFDR. The Firm has chosen not to do so for the present time as it considers that its existing ESG policies and procedures are appropriate, proportional and tailored to the investment strategies of the Firms’ clients. The Firm will keep its position on principal adverse impacts under review on an annual basis.