HgT’s approach to responsible investing
The Board of HgT fully endorses the Manager’s policies to invest HgT’s funds in a socially responsible manner.
A force for good
At Hg, we are committed to being a Responsible Investor and that means taking action on a firm level and across the portfolio.
We look to grow sustainable businesses which are great employers and good corporate citizens, whilst also generating strong returns for the millions of pensioners and savers who are invested with us.
ESG across Hg
We strive to be a responsible investor, business and employer in a number of ways.
UNPRI ratings (97% for PE, 94% for Policy, Governance & Strategy, 100% for Confidence Building Measures)
donated via The Hg Foundation
Glassdoor / Kununu score
Employee Net Promoter Score
Hg’s approach to responsible investment
Stability, sustainability, resilience – the ability to endure. Core to Hg’s strategy over the last 30 years is to build a franchise that lasts for future decades. This is important to Hg as they have a purpose with an equally long-term horizon – bearing the trust to improve the future of millions of investors by building sustainable businesses for tomorrow. Hg can only continue to deliver this purpose in a sustained way if they are growing and investing responsibly.
ESG across our portfolio
Our approach to responsible investing is outlined in our Sustainable Business Framework which is tailored specifically for software and service companies.
There are certain minimum ESG requirements that Hg expects from all our businesses.
These include:
Essentials
- governance and business integrity, such as code of conduct, appropriate controls and policies, board composition and appropriate health and safety and whistleblowing procedures;
- risk and compliance, including compliance with applicable laws and regulations, active risk management, as well as standards and policies to combat bribery, corruption, money laundering, anti-competitive behaviour, tax evasion, harassment and other malpractice.
- data and cyber security, including Hg’s minimum standards for cybersecurity with appropriate data protection and information security practices. Hg has a separate cybersecurity assessment which all companies are assessed against as part of onboarding and regularly thereafter.
Employees
One of the most important assets of our businesses is our employees. A diverse workplace with engaged and motivated staff is vital for growth and business success. We look at employees from four aspects:
- purpose and culture, including an engaging mission, purpose and values, as well as positive impact / contribution to the SDGs.
- grow businesses and talent, including job growth, healthy staff turnover, talent management and succession planning.
- engage and motivate employees by promoting transparent communications, health and wellbeing, development opportunities and recognition
- diversity of talent, equal opportunities and inclusion irrespective of ethnicity, gender, disability or background
Society
We want all portfolio companies to strive to make a positive impact by acting transparently and contributing to society through their business practice, charitable support and positive relations with key stakeholders. We use four categories to assess our external impact:
- community engagement, including apprenticeships, charitable giving and volunteering
- environmental impact, such as energy use, energy efficiency, waste management, carbon emissions and climate change risks and opportunities
- positive relationships with key external stakeholders such as customers, communities and suppliers
- transparency of company commitments and progress, including external reporting and sustainability-related communications.
Diversity and inclusion
We believe that having a diverse workforce deepens our talent pool and brings us a wider range of perspectives. It manifests in how we navigate the business world, including the investment decisions we make.
Diversity is 100% essential and possibly the top priority for our firm.”
Nic Humphries
SENIOR PARTNER AND EXECUTIVE CHAIR, Hg
The Hg Foundation
The aim of The Hg Foundation is to remove barriers to education and skills in technology so that the tech workforce of the future harnesses the talents of all, regardless of background. We focus on individuals from under-served or diverse backgrounds, who may otherwise experience barriers to access.