Linking Sustainability and Value
With a focus on sustainability since the firm’s inception, SK Capital sees the value of investing with an ESG mindset. Our Sustainability Program reflects the SK Capital leadership team’s long-standing focus on sustainability and our deeply held belief that sustainability drives tangible value creation in our sector.
Sustainability and ESG considerations are integrated into the firm’s investment decision making process from initial screening stage through advanced due diligence. The goal of this process is to identify ESG-related risks and opportunities, which ultimately informs our actions as owners and stewards of businesses.
Our sustainability initiatives are supported and carried out by portfolio company management teams, with whom we partner to manage ESG-related opportunities and challenges to drive improvement and performance.
As with any SK value creation initiative, management teams are key. SK seeks to consistently partner with portfolio company leadership on ESG-related initiatives and challenges, driving change and performance.
DEAL EVALUATION PROCESS
- Sustainability factors are considered in every potential investment, evaluated as both a risk and opportunity
- Investment Committee takes a formalized and standardized approach to the consideration of ESG factors, including “traffic light” screening process and full diligence at execution stage
ESG TOOLKIT AND SUSTAINABILITY FRAMEWORK
- In-house proprietary framework for identifying sustainability topics that are specific to our sectors of focus
- Toolkit defines a standard set of evaluative questions qualifying a target company’s Sustainability Focus, Sustainable Process and Operations and Sustainable Products and Services
PORTFOLIO MANAGEMENT AND VALUE CREATION
- Investment process seeks to identify sustainability-linked value creation initiatives to pursue during the holding period
- We believe that the full-cycle approach helps drive attractive returns to our investors by shaping businesses with a lasting, sustainable footprint beyond SK’s ownership