Sustainability risks are considered at all stages of the investment process for each product, for each individual investment opportunity. In the screening phase, Rantum Capital excludes investments in companies that:
- Deliberately violate national laws and International Labor Organization (ILO) conventions.
- Engage in the manufacture, sale or distribution of firearms
- Are based in countries subject to trade embargoes imposed by the UN or the European Union (EU)
During the due diligence phase of the investment, Rantum Capital, supported by independent external ESG consultants, assesses various ESG aspects of the investment and identifies material opportunities and risks with high potential financial impact on the investment. To gain a comprehensive understanding of the target companies, the ESG consultants conduct extensive secondary research, review relevant documents, and interview management and relevant employees of the target investment. The results of the ESG due diligence are considered as part of Rantum Capitals decision-making process when recommending an investment decision. The investment team is required to apply the above methodology and report on the results as part of the memo submitted to the Investment Committee for review. Rantum Capital reserves the right to reject an investment should it clearly violate Rantum Capitals ESG guidelines and pose a high financial risk to the investment.
Sustainability risks will be reviewed regularly during the holding period to ensure compliance with Rantum Capitals ESG policy and business principles. ESG issues are specifically addressed in reports prepared by the fund or its portfolio companies and discussed at fund investor meetings.