Creating long-term value by integrating ESG into our investment decisions and portfolio management

On August 9th, 2021, we publicly demonstrated our commitment to responsible investment and became a signatory to the United Nations Principles for Responsible Investment (UNPRI). The UNPRI is a globally recognized network of financial institutions working together to voluntarily implement its six  “Principles” designed to better understand, incorporate and report on ESG matters. Where consistent with our fiduciary duties, we seek to implement these aspirational Principles. As a signatory, we are required to annually report on our ESG-relevant investment activities and be subjected to the UNPRI grading framework.

Our ESG risk assessment and disclosure standards incorporates the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD). These recommendations, which are widely adopted across sectors and jurisdictions, helped us to integrate core ESG considerations and governance controls into our decision-making and reporting processes.

We are aligned with the United Nations Sustainable Development Goals (SDG), adopted in 2015 by the UN members as part of the 2030 Agenda for Sustainable Development. We are committed to utilizing our governance to align portfolio company operations with environmental and social goals: reducing carbon and other emissions (SDG 13), shift to renewable energy sources (SDG 7), create decent jobs and support sustained inclusive economic growth in local communities (SDG 8). At the investment level, we aim to support inclusive and sustainable industrialization, innovation and infrastructure (SDG 9), and believe in contributing to the cooperative global network of partnerships working towards sustainable and responsible investing (SDG 17).

Our ESG commitments will be measured, monitored and reported using elements from the Global Reporting Initiative (GRI) Standards, which aims to standardize and quantify the ESG costs and benefits derived from our operating activities; as well as the sector-specific reporting framework set out by the Sustainability Accounting Standards Board (SASB), which provides subsets of financially-material ESG issues according to the industry of activity; and, where appropriate, standards and guidelines issued by the International Finance Corporation (IFC). MCP also promotes policies in line with the UN Guiding Principles.

Moreover, we intend to carry out regular independent ESG certification and audit, performed by reputed organizations, on our portfolio companies to evaluate our ESG performance.

MCP follows the Institutional Limited Partners Association (ILPA) industry guidelines and best practices to strive for transparency and good governance.