Sustainability

Sustainability is in our DNA

Since our founding, SK Capital’s mission has been to sustainably create and capture value for our stakeholders in all economic environments.

Sustainability is an important feature of our firm’s purpose and integrated into our investment strategy:

  • We make investments and manage assets to achieve superior returns that are durable and lasting.
  • Improving the sustainability performance and profile of each portfolio company increases its overall value and generates more favorable returns. 
  • By their very nature, our sectors of focus are uniquely positioned to enable enhanced living standards and a more sustainable future.

We seek investments where SK’s vision, partnership, and unsurpassed industry experience can make sustainability an important part of a company’s transformation.

Sustainability Goes Beyond ESG

Like many investment firms, SK incorporates ESG considerations into our investment processes and asset management operations. SK Capital believes that ESG frameworks and processes are critical, but sustainability goes beyond ESG. It is a mindset that our companies can continuously strive for better outcomes for all stakeholders.

  • ESG is a means to identify and manage environment, social, and governance related risks and opportunities.
  • Sustainability is part of our plan to improve the companies in which we invest. We work with each portfolio company to build a sustainability strategy that aligns with SK Capital’s sustainability objectives and principles to drive progress towards a more profitable business as well as a more sustainable world.

objectives

Each company is unique, and so is its sustainability journey. However, the objectives of our strategy are constant:

  • Reduce the environmental footprint of company operations and products
  • Enhance productivity, efficiency, and safety
  • Be good employers and neighbors
  • Create products that are sustainable themselves or that are solutions that enable others to operate and live more sustainably.

Air purification textile technology

Archroma

Principles

We acknowledge that as leaders in our sectors of focus, there are unique opportunities for SK and our portfolio companies to seize and imperatives we all must tackle:

Materials, ingredients, and life sciences are essential to a healthy, more sustainable future. SK portfolio companies are uniquely positioned to meet demand for products that help enable a low-carbon, renewable and circular future.

To fully capitalize on the projected growth of our targeted sectors, transforming both processes and products to be safer and more sustainable are critical.

Our Sustainability strategy is Built on the Following Principles

Sustainability and ESG factors are considered systematically from beginning to end of the investment life cycle.

We assess each company, starting with common priorities, to determine which opportunities and risks are most relevant.

By collaborating with company leaders, stakeholders, service providers and experts, like the UN’s Principles for Responsible Investing (UNPRI) organization, we bring ideas, capabilities, and credibility to our work. 

We build strategies and track progress so each company in our portfolio can improve.

Systematic Approach

SK turns our principles into action by systematically identifying and pursuing sustainability opportunities throughout the investment lifecycle and across our portfolio. This approach allows for consistency and predictability, while also remaining agile to adapt to unique company circumstances.

Sustainability Priority Issue Areas

SK’s concentration on specific sectors and our deep bench of industry veterans has allowed us to leverage the firm’s specialized knowledge to establish a common set of priorities that are relevant to any investment we make.

• Climate and Energy
• Water
• Air Quality
• Circularity
• Product Safety & Stewardship
• Process Optimization and Operational Safety
• Community Impact
• Diversity, Inclusion & Employee Engagement
• Sustainability Leadership

Sustainability for value creation

Sustainability is innately valuable because it is good for our environment and the people who live in it.

As a firm that transforms companies to create value for stakeholders and investors, we start by pursuing opportunities that will produce sustainability and operational, financial and/or productivity gains. 

SK has instituted initiatives to identify opportunities to lower energy bills, increase efficiency, and reduce greenhouse gas emissions at portfolio company facilities.

Measuring Our Progress

Just like our portfolio companies, SK Capital is on its own sustainability journey. We will continue to build the tools and systems to turn opportunities into results.


One of the most significant milestones on SK’s sustainability journey was signing the United Nation’s Principles for Responsible Investment.

SK completed the 2021 PRI Assessment and was evaluated in the Investment and Stewardship Module and the Private Equity Module. In both categories, SK outperformed the median score. We are proud of this strong validation of SK’s effort and believe it provides even more momentum for further development of our sustainability strategy and initiatives.

An important way we evaluate our strengths is by looking to certified ESG and Sustainability systems like EcoVadis. We are proud of our portfolio companies that have achieved strong EcoVadis assessments.

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