We believe that taking an active management approach over longer hold periods and applying sound practices to environmental, social and governance (“ESG”) matters throughout the investment cycle can result in sustainable value creation. In order to achieve this, we have developed a robust Responsible Investment System, which seeks to identify and manage ESG matters consistently and effectively, both in our own business and in our underlying portfolio companies. To demonstrate our commitment to Responsible Investment, Columna became a signatory to the PRI (Principles for Responsible Investment) in 2017 and we have since integrated the UN Sustainable Development Goals (SDGs) into the way we consider environmental, social and governance matters.

This Responsible Investment Policy outlines the key objectives, principles and values that form the basis of our Responsible Investment approach. We believe this to be comprehensive but recognise that the wider Responsible Investment agenda continues to change. To this end, we will review the document annually, and update it where necessary.

Overall objectives

As an investment firm, we aim to ensure our continued access to high quality investors, through delivering above-market sustainable returns and maintaining good relations with key investors over the longer-term.

Through our active management role, we try to maximise positive impacts of our investments (including creating commercial success), while avoiding or minimising material negative impacts and, where possible, helping realise social and environmental benefits. At a minimum, our objective is to proactively and consistently comply with all relevant laws. 

We acknowledge climate change is a sustainability priority and therefore endeavour to conduct our business with consideration of the key aims of the 2015 Paris Climate Agreement. In particular, we aim to incorporate climate risk into our investment criteria, including understanding how our activities and investments may contribute towards its causes, and determining any actions we can foster to mitigate such risks in a manner that is consistent with our investment objectives. We support the recommendations made by the Task Force on Climate-Related Financial Disclosures (TCFD), which we are progressively adopting while we identify and manage climate risk associated with our operations and those of our investees. 

Values

In order to achieve our objectives, we have developed a set of ESG values. These are consistent with our core business principles, and are embedded in Columna’s approach to investing:

• Integrity – We are aware that reputation is vital to our business. A demonstrable commitment to honest and ethical practice in everything we do is essential to gain the trust of customers, partners and investors. Our Responsible Investment System, and the associated training, makes it clear to all our employees how they need to behave in considering ESG issues.
• Transparency – We believe transparency is the basis of a trustworthy relationship. We are committed to using documented ESG practices in a systematic and effective way, in order to help us understand and manage ESG matters within our Portfolio Companies, as well as communicate opportunities and risks to our stakeholders, including our investors. 
• Reliability – We are integrating structured ESG criteria into our investment activities in a replicable way to ensure that our decision-making is robust. We believe adopting this approach can have a positive impact on the performance of our portfolio investment companies making them, too, more reliable. 
• Proactiveness – Columna partners take board positions in all portfolio companies and we actively engage with company management to improve ESG performance of our businesses, as may be relevant.

Exclusion zones

Columna and its funds will not make investments related to the following sectors: adult entertainment, gambling, tobacco, alcohol, arms manufacturing, testing on live beings, unsustainable wildlife exploitation and subprime lending.

Management commitment

Columna’s management is committed to promoting and encouraging Responsible Investment practices, and to providing necessary resources to ensure appropriate implementation of the ESG commitments outlined in this document.