Core to our investment philosophy at GEF Capital is to create value while also effecting a positive change in the environmental footprints of the businesses in which we invest. By doing so, we are seeking to provide frameworks for ways in which positive economic and environmental outcomes can benefit not only our portfolio company’s investors, but also the many different stakeholders who contribute to a business’ success.
To accomplish this, we apply an ESG compliance program which we believe correlates to better risk management and improved financial returns. This program is tailored to the regions and companies in which we invest. We also seek to measure these outcomes so that we can provide empirical evidence of the positive impacts that our investment program provides to both our investors as well as the other stakeholders of our portfolio companies. By measuring and reporting on the impacts to areas such as energy, water, waste, materials and land, GEF Capital is acknowledging the significant value that frameworks such as the UN Sustainable Development Goals provide for creating a common way to discuss and evaluate impact.
Upon exiting an investment, our expectation is that our investment and our impact and ESG program will have not only improved the total financial return to our investors, but that we will have delivered a business to continuing and new stakeholders that is stronger and more knowledgeable of the benefits and consequences of its actions and operations. In sum, we want to leave companies in better places than where we “found” them.