Responsibility

OverviewESGUNPRIASCRI

Abac’s motto is Sustainable Value Investing. We believe that our job is not only to identify attractive opportunities and unlock trapped value in our portfolio companies, rather we are determined to earn our license to operate by behaving at all times with the utmost respect for the environment and the highest sense of responsibility to society.

As fiduciaries, we acknowledge that our investment decisions impact the life of the Fund’s portfolio companies, their employees and communities. We endeavour to add value to the companies we back through operational excellence, strong personal and professional relationships, extensive industry knowledge, financial acumen and a deep sustainability commitment.

We believe this is a key success factor to build our reputation as partners of choice. Thus, since inception, Environmental, Social and Governance factors and a strong culture of citizenship have been at the heart of our Sustainability ethos. ESG matters are always analysed by deal teams and discussed at Approval and Investment Committees during the investment process, and at Portfolio Review Committees after investing.

This is Abac’s pledge to the Fund’s investors, to the Fund’s portfolio companies and to their employees. We are grateful to have investors that share this view and push our boundaries to ensure we do not derail from our Sustainability path.

Environmental, Social and Governance (ESG)

We believe that long-term value creation has to come necessarily from a combination of improving the businesses in which the Fund invests and doing so in a sustainable manner. Therefore we:

– Consider associated environmental, public health, safety, and social issues before investing in a company;

– Strive to grow and improve long-term sustainability of the companies in which the Fund invests;

– Seek to engage with all relevant stakeholders, either directly or through representatives from our portfolio companies;

– Implement appropriate reporting, audit, compensation and governance structures at our portfolio companies with the goal of improving performance, aligning interests and minimising risks;

– Are committed, together with our portfolio companies’ management teams, to comply with (and when possible, go beyond) applicable labour laws in the countries in which we operate;

– Keep strict policies that prohibit bribery and other improper payments to public officials, in line with the OECD Anti-Bribery Convention;

– Provide appropriate information to the Fund’s Limited Partners on ESG matters and promote transparency about our activities.

Our ESG undertakings are informed by international guidelines such as the 10 Principles of Corporate Governance published by the U.N. Global Compact, the U.N. Principles for Responsible Investment and other ESG best practices as we see fit.

Since inception, we are signatories of the Principles for Responsible Investment, a United Nations’ initiative launched in 2006 by Kofi Annan encouraging its endorsers (asset owners, investment managers and service providers) to respect its six core principles.

At Abac, we recognise that applying these Principles helps us better align investors’ interests with broader objectives for our society.

Principle 1: We incorporate ESG issues into investment analysis and decision-making processes;

Principle 2: We are active owners and incorporate ESG issues into our ownership policies and practices;

Principle 3: We seek appropriate disclosure on ESG issues by the entities in which we invest;

Principle 4: We promote acceptance and implementation of the Principles within the investment industry;

Principle 5: We work together to enhance our effectiveness in implementing the Principles;

Principle 6: We report on our activities and progress towards implementing the Principles.

→ Principles for Responsible Investment (UNPRI)

→ Access our UNPRI Transparency Report for 2018

→ Access our UNPRI Score for 2018

→ UNPRI assessment methodology

Since inception of the Fund, Abac is a member of the Spanish Private Equity and Venture Capital Association (ASCRI), an industry body aiming to ensure adherence to professional standards of transparency, good governance and industry best practices amongst its members.

In July 2018, Abac was awarded the ASCRI Prize to the Spanish fund manager with the highest contribution to ESG matters. Abac was particularly recognised for the sustainability initiatives implemented at Figueras Group during the past year.