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Environmental Social Governance

Diversity, Equity, and Inclusion

 

From the due diligence in our investments, to choices we make in growing each company, at Oak Hill we live our ESG and DEI values. Each of us demonstrates this personally as we look to better the communities in which we work and live. *

 

 READ OUR LATEST ESG REPORT >>

 
PAST REPORTS:  2020 
THE FIRM

ESG & DEI Strengthens Our Resiliency

In 2010, Oak Hill embarked on an effort to formally integrate environmental, social, and governance considerations into our investing and management activities. We are proud of the progress we have made since then. We believe that each step has benefited our investors, Firm, employees and portfolio companies, and the communities we all share.

READ OAK HILL'S RESPONSIBLE INVESTMENT POLICY >>

Diversity, Equity & Inclusion: To maximize the potential of the human capital at the Firm and across our portfolio companies, we are publishing a Diversity, Equity & Inclusion plan and are increasing diversity and inclusion on the boards of our portfolio companies. We believe these steps will better position our Firm and our portfolio companies for long-term success.

Integration: After eight years of development, experience, and focus, we have integrated ESG considerations into our core business activities. In 2020, for the second consecutive year, Oak Hill received an overall A+ in UNPRI’s Assessment Report. **

Results: We continue to build our ESG program into Oak Hill portfolio companies. Three recent examples:

 

>  At Galway Insurance Holdings, we prioritized and sustained employee equity ownership across a large number of employees in the workforce - a key to properly aligning interests.

>  Charter Next Generation is turning the tide on plastic waste through its award-winning recycled content and recyclable products, and its commitment to a circular economy for plastic packaging.

>  With our support, Berlin Packaging is developing a comprehensive, industry-leading sustainability program.

Climate Leadership: As a founding partner and supporter of Emergent Forest Finance Accelerator, we are combating climate change by mobilizing capital to reduce global deforestation and preserve biodiversity.

Metrics: We continue to measure our Firm’s progress as well as our portfolio companies’ performance.

 

 

OUR PORTFOLIO

ESG & DEI Activities at Our Portfolio Companies

DUE DILIGENCE

ESG + Due Diligence Process

Over the past eight years, we have formally integrated ESG analysis into each step of our due diligence process. We work across investment teams to ensure that potential investments presented to our Investment Committee typically include the following analysis of potential ESG risks and opportunities. We not only look at the company's ESG impact but also examine the macro-level ESG issues within the broader industry.

Phase 1

The Firm considers whether the deal team should explore the opportunity and an initial ESG screen is conducted around the fundamental premise of the business. This could result in the further termination of any further diligence if the company's business model conflicts with the Firm's Responsible Investment Policy.

Phase 2

The Firm reviews the investment to determine whether it merits full scale due diligence and incurring significant diligence-related costs. Oak Hill considers the key ESG risk and opportunities through a preliminary ESG assessment. We set forth a road map for further diligence.

Phase 3

Oak Hill obtains ESG-related questions through meetings with the company's management team, review of company data, and discussions with external advisors. Presentations to the Investment Committee include necessary information related to any ESG concerns raised during the Phase 2. The company's ESG data are compared against Oak Hill's Responsible Investment Policy.

Phase 4

As needed, Oak Hill's Investment Committee discusses material ESG issues in the final diligence meeting with the company's management team.

If the company has material environmental and/or social impacts, then Oak Hill's investment professionals and ESG Officer coordinate a plan for engagement and monitoring.

 

 

HISTORY

ESG & DEI: Where We Started to Where We Are

Origin

Firm founded as the family office of Robert M. Bass.

Family Office’s core tenants:

      • Alignment of Interests
      • Strong personalities, low egos
      • Collegiality is important
      • Figure out what needs to be done and do it!
      • Do well in order to do good
      • The first rule of investing: don’t lose the money; the second rule: don’t forget the first rule.

From the start, Oak Hill grounded itself in social responsibility, refusing to invest in gun manufactures, pay-day loans, gambling or other businesses that take advantage of the poor or underrepresented.

2011

Appointed our first ESG Officer to review potential transactions and help drive implementation of our responsible investment activities.

Formed partnership with Environmental Defense Fund (EDF), one of the world’s leading environmental organizations, and developed a heat map of the largest environmental opportunities in our portfolio.

Placed the first of five EDF Climate Corps Fellows at a portfolio company.

Since 2011, the Firm’s professionals have spoken at 13 industry forums related to ESG issues in private equity, and Oak Hill’s ESG program has been featured in 6 trade publications.

2012

Joined Business for Social Responsibility (BSR), a leading sustainability consulting and research organization, as a strategic partner to review potential investment transactions and developed a process for reviewing all new investments.

In the past four years, we have directly engaged with BSR on 9 potential transactions for deeper dives on specific ESG issues that we have uncovered at potential investments. BSR’s staff of more than 100 global sustainability experts help us understand the materiality and potential impact of emerging sustainability issues at potential investments.

2013

Adopted our first Responsible Investment Policy and publicly released our first annual ESG report.

Joined BUILD to promote college readiness through entrepreneurship among underserved students.

2014

Became one of the first middle-market private equity firms in North America to become Principles for Responsible Investment (PRI) Signatory. We have completed a PRI Transparency Report each year since 2014.

First year that 100% of potential investments presented to our Investment Committee underwent the Firm’s ESG due diligence.

Hosted the first of 17 professional development ESG webinars for our portfolio companies. Topics have included creating a responsible sourcing initiative, mitigating risks from climate change, implementing diversity and inclusion initiatives, and how to build a veterans hiring program.

2015

Completed our first PRI Transparency Report.

2016

Marked Oak Hill’s 30th year of business.

Co-presented first ESG-focused Continuing Legal Education event with BSR and EDF to 100 legal professionals.

2017

Joined the Ceres Investor Network on Climate Risk and Sustainability.

2018

As a founding supporter of the nonprofit Emergent Forest Finance Accelerator, began working with EDF to accelerate forest protection.

2019

Updated our Responsible Investment Policy.

Hosted two scholars from Girls Who Invest.

Oak Hill continued its support of Emergent, which formally launched its efforts to catalyze and drive capital into tropical forest protection and restoration globally.

2020

Received A+ in PRI’s Assessment report on both relevant reporting modules for the second consecutive year. **

Catalyzed the development of Employee Assistance Funds at portfolio companies. Engaged with EDF’s Climate Corps fellow program for a fifth time.

Emergent built out its team and assembled a roundtable of over 30 interested companies while working with its partners to build a portfolio of forest countries to generate credits. Oak Hill introduced Emergent to other investment firms that are interested in participating in this market-based solution.

2021

Formed our first DE&I Committee and published a formal DE&I policy.

Became an ILPA Diversity in Action Signatory.

2022

Founding Member of Ownership Works.

COMMUNITY VOLUNTEERING

Living Our Values

At Oak Hill Capital, living our values means that we get out into the community and help. Whether it’s a cycling event to beat rare cancers or planting a rooftop garden, we are always looking for opportunities for our team to contribute to the communities in which we work and live.

* The ESG and DEI considerations and analysis described above reflect the subjective views of Oak Hill. There is no guarantee that the criteria utilized by Oak Hill, or any judgment exercised by Oak Hill, will be consistent with the beliefs or values of any particular person or industry participant. In addition, while Oak Hill integrates certain ESG factors into its investment process in accordance with its ESG policy and subject to its fiduciary duty and any applicable legal, regulatory or contractual requirements, there is no guarantee that Oak Hill's ESG policy will be successful or that it will create a positive ESG impact.

** Principles for Responsible Investment (“PRI”) is not considered an official rating agency, and their Assessment Report is one measure of Oak Hill’s ESG initiatives. For more information on PRI qualifications and reporting metrics, please see unpri.org.

 

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INVESTOR RELATIONS

Andrew Burdick
Partner & Head of Investor Relations

aburdick@oakhill.com

Jacob Shulman
Director, Investor Relations
jshulman@oakhill.com

Morgan Unger
Associate, Investor Relations
munger@oakhill.com

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