Great Hill Partners’ primary objective is to generate attractive risk-adjusted returns for its investors. Consistent with this objective, Great Hill Partners invests in companies and management teams that have integrity, are accountable for their social and environmental impacts, and have governance in place to improve those impacts. We consider Environmental, Social, and Governance (“ESG”) factors in our investment process to improve performance and reduce risks. We recognize that integrating ESG considerations into our investment decisions benefits our portfolio companies, their employees, and the local communities in which they operate. Recognizing the importance of responsible investing to Limited Partners, the private equity industry, and the commercial ecosystem as a whole, Great Hill Partners has developed a set of Responsible Investment Guidelines outlined below.
We designed our diligence process to provide a comprehensive understanding of a company’s opportunities and risks. As such, we integrate ESG considerations into our due diligence process for all investments. Our objective is to make financial decisions on a full set of risk- reward factors and we view ESG considerations as important inputs into our investment process.
Our diligence review is customized for each target company taking into account company size, industry sector, and geography to identify relevant topics such as environmental (e.g., energy, waste, water, pollution), social (e.g., labor, health & safety, human rights) and governance (e.g., anti-bribery & corruption, ethics, accounting) factors. For each company, we identify a subset of relevant ESG issues. We incorporate ESG analysis in the Investment Memorandum for every deal, and discuss any ESG issues identified as potentially material in our Investment Committee discussions. A representative listing of ESG factors considered in the due diligence process is attached as Exhibit A.
Portfolio Company Communication
We provide all portfolio companies with these Responsible Investing Guidelines, and request that management teams be aware of and advance these principles in their operations.
Monitoring and Reporting
We monitor portfolio company ESG performance and include an ESG section in the Quarterly Reporting documentation.
Internal Oversight and Training
Our Principal, Head of Investor Relations and ESG and Operations Associate are responsible for program oversight and annual review. The Managing Partners maintain ultimate responsibility for determining how to manage significant ESG issues and opportunities. We incorporate ESG into the annual mandatory compliance training session for all team members.
We are committed to staying informed on ESG developments and best practices. We will evaluate our ESG Policy annually and consider changes or additions as appropriate to ensure the way we integrate ESG into our investment process helps us earn exceptional returns. We believe that by investing in companies and management teams with integrity and that are accountable for their impacts on society and the environment, we will achieve superior results for our investors.
Representative ESG factors Considered in the GHP Due Diligence Process
- Anti-bribery and corruption
- Chemicals/ hazardous substances handling
- Child and/ or forced labor
- Data privacy and security
- Diversity and inclusion
- Employee engagement programs
- Health and safety management
- Human trafficking
- Illegal products or activities per applicable local laws
- Intellectual property protection
- Production or sale of pornography
- Resource efficiency/ management
- Social related claims
- Supplier standards
- Supply/ purchase of sanctioned products to or from regions covered by UN sanctions
- Waste disposal procedures