We have ESG principles already built into our wider
business activities, and we’ve embedded them into
our investment decision process.
We are publicly committed to this strategy, alongside
which a formal process is underway to evaluate our
ESG performance against agreed global standards.
This is not just good business practice for MiddleCap;
we believe it will promote and encourage good
environmental and social governance behaviours
throughout Central and Eastern Europe, which we
feel lags behind the rest of the continent in this area.
As value creators we understand that ESG has
become integral in bringing value to managed assets
and providing extra insight on related risks.
Formalising and including ESG criteria in our value
creation process we will be able to bring additional
benefits and risk-adjusted returns to our investors,
as well as an environmentally sustainable products
to customers of companies within our portfolio.
We have created a unique internal framework,
based on best market practice. This covers
assessing material risk, evaluating each division
and portfolio against selected ESG benchmarks,
as well as evaluating our activity against existing
standards, while creating a roadmap for improving
and maintaining the group’s achievements.
We will create accessible platforms for
communicating the results of our ESG efforts,
ranging from our various websites through to our
group annual report, and we will select an industry
standard to be used in conjunction with a formal
disclosure of our ESG positions.
In future, all investment decisions will be based on
ESG criteria, while the group’s activities will adhere
to a strict due diligence process. We are also creating
a set of professional competences in the ESG area
and we will provide these services to our customers.
Backed by MiddleCap’s experienced and highly
skilled executive management, an ESG governance
structure will be created in the form of a specialised
cross-departmental team which will report directly
to the group’s board of directors.
This team will ensure consistency across group
investment decisions, advise group companies,
and promote ESG topics amongst our staff and the