ESG Approach

Philosophy

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Initiatives

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ESG World

Our contributions summarized on ESG World:

For information on individual platform companies' initiatives click here.

Philosophy

At its core, our ESG philosophy is about making a positive impact on the world and creating long-term value for all stakeholders. We believe in companies that prioritize ESG considerations and are committed to supporting them through our investments.

We strive to incorporate ESG factors into every aspect of our investment process, from due diligence and portfolio construction to engagement with portfolio companies. We believe that this holistic approach allows us to identify opportunities for value creation and risk reduction, while also contributing to a more sustainable and equitable future.

Ultimately, our ESG philosophy is about doing the right thing – for our investors, for the companies we invest in, and for the community as a whole.

Initiatives

Convergent is a pioneer in 'active ESG management' within the Indian ecosystem. Our team has extensive investment and portfolio management experience, combined with the belief that adherence to ESG principles is a win-win for the portfolio company and external stakeholders. To ensure the highest standards of ESG compliance, we have developed a comprehensive ESG due diligence process with more than 25 evaluation criteria and are empowered to bring about ESG-related improvements in our portfolio companies.

We believe in a proactive ESG approach. Through frequent engagement with management teams and alignment of incentives, we enhance the abilities of our portfolio companies by integrating tailor-made, sustainable changes into the existing business strategy. We believe that companies that successfully manage ESG risks and opportunities today are better positioned for the future as environmental stress, dynamic consumer priorities, and changing regulations create new challenges and opportunities. To follow through on our belief in sustainability, we have a strict negative exclusion of companies in sectors such as tobacco, narcotic drugs, weapons, gambling, pornography and the extraction and production of thermal coal and unconventional oil and gas.

While high standards of corporate governance and environmental and social responsibility are core values for us, we also believe in practicing what we preach. In February 2021, the Convergent team identified two schools in Sawai Madhopur (in rural Rajasthan) and distributed notebooks and stationery to over 230 young girls. To improve the infrastructure in these schools, we have also contributed funds to construct sanitation facilities, which were previously absent or derelict. As we believe that education can transform the lives of these rural children, we hope our contributions will act as a stepping stone for the next generation of Indians to achieve their dreams.

As the pandemic boosted the shift towards e-learning across the world, some parts of India weren’t as well-adjusted to support this. In February 2022, the Convergent team donated laptops and stationery to 3 schools across rural Uttarakhand, a state in Northern India. The students, ranging from Grade 1 to Grade 10, can now access the education they previously had to forego due to infrastructural challenges. Through such initiatives, we aim to follow through on our focus on helping young children in rural areas gain access to education.