Environmental, Social and Governance (ESG) Responsible Investment

HomeESG and Responsible Investing

Demand for responsible investment is growing at an accelerated pace driven by societal, customer and industry demands aided by regulatory and political factors driving the change.

Crescent has one of the largest and most experienced in-house ESG team amongst peers its size that is dedicated solely to providing strategic advice for reaching low carbon targets and sustainability outcomes to our portfolio companies and for making sure our investor requirements are met.
As a firm, Crescent is proud to have maintained our Climate Active certification for the last 3 years. Climate Active is an Australian Government program that supports national climate policy by driving voluntary climate action by Australian businesses.

Negative Screening – We exclude certain sectors and activities based on ESG-related issues that could seriously impact the future success of business associated with them. 

Due diligence – We conduct comprehensive ESG due diligence to assess the ESG-related risks and opportunities of all potential acquisitions, and to inform management strategies where appropriate.

We believe that embedding ESG and other Responsible Investment practices throughout our pre-investment decision making processes assists in identifying, assessing, and managing material business risks and opportunities.

Our Responsible Investing Principles

Crescent is committed to embedding Responsible Investment and ESG principles alongside our established approach to deliver strong financial returns over the period of our investment.

Value Creation

We understand the material factors associated with our portfolio companies that unlocks value opportunities. Our investment team takes a multi-faceted management approach to identify and capitalise on value creation opportunities.

Long-term Vision

We look beyond the present norms to future-proof our investment decisions, taking into account the changing global landscape. This includes actively considering the evolving ESG risks and opportunities.

Active Partnership

We have an active partnership ethos. This is an impact-focussed approach to portfolio management where value creation includes active engagement around ESG factors throughout the investment cycle.

Holistic ESG Integration

We believe that embedding ESG and other Responsible Investment approaches throughout the investment cycle is an important component of our fiduciary responsibilities to our clients as well as increasing investment value. Integrating an ESG approach is a fundamental part of our process to identify, assess, and manage all material risks and opportunities.

Awareness and Education

We proactively support our ESG capabilities and performance through the provision of training to our staff and portfolio companies. We promote ESG transparency and collaboration, enabling broad and diverse consideration of all material ESG factors at every stage of the investment cycle.

Investor Dialogue

We regularly engage with our investors to identify their needs, invest their capital in a way that aligns with their individual Responsible Investment beliefs, and regularly communicate updates in regard to the ESG performance of the relevant funds.

Monitoring and Development

We seek to continuously build on our learnings from our own activities, our portfolio and Responsible Investment peers. We closely monitor ESG and Responsible Investment practices to enable us to identify opportunities to improve and develop our approach.

Value Creation

We understand the material factors associated with our portfolio companies that unlocks value opportunities. Our investment team takes a multi-faceted management approach to identify and capitalise on value creation opportunities.

Long-term Vision

We look beyond the present norms to future-proof our investment decisions, taking into account the changing global landscape. This includes actively considering the evolving ESG risks and opportunities.

Active Partnership

We have an active partnership ethos. This is an impact-focussed approach to portfolio management where value creation includes active engagement around ESG factors throughout the investment cycle.

Holistic ESG Integration

We believe that embedding ESG and other Responsible Investment approaches throughout the investment cycle is an important component of our fiduciary responsibilities to our clients as well as increasing investment value. Integrating an ESG approach is a fundamental part of our process to identify, assess, and manage all material risks and opportunities.

Awareness and Education

We proactively support our ESG capabilities and performance through the provision of training to our staff and portfolio companies. We promote ESG transparency and collaboration, enabling broad and diverse consideration of all material ESG factors at every stage of the investment cycle.

Investor Dialogue

We regularly engage with our investors to identify their needs, invest their capital in a way that aligns with their individual Responsible Investment beliefs, and regularly communicate updates in regard to the ESG performance of the relevant funds.

Monitoring and Development

We seek to continuously build on our learnings from our own activities, our portfolio and Responsible Investment peers. We closely monitor ESG and Responsible Investment practices to enable us to identify opportunities to improve and develop our approach.

ESG across our portfolio

Crescent recognises that understanding and managing all material factors associated with our portfolio companies unlocks value opportunities. 

Our ESG and investment teams take a multi-faceted management approach to identify and capitalise on value creation opportunities and to mitigate risks.

  • Engagement – Crescent’s active partnership ethos extends to the inclusion of ESG. We routinely collaborate with the management teams of our portfolio companies, through channels including direct meetings and group roundtable discussions.
  • Knowledge sharing – We aim to foster continuous improvements in understanding ESG within our investment and portfolio company management teams through regular knowledge sharing.
  • Regulatory compliance – We actively scan the international regulatory horizon to support our portfolio companies in navigating the increasingly complex ESG regulatory landscape.