Environmental, Social and Corporate Governance Principles

We believe that the performance of our private equity funds and portfolio companies can be impacted positively by effective environmental, social and corporate governance (“ESG”) practices.  We are committed to integrating ESG factors into our analysis of potential investments and the management of current investments and reporting on ESG to our investors.  THL follows the guidelines for responsible investment adopted by the American Investment Council, pursuant to which we:

  1. Consider environmental, public health, safety, and social issues associated with portfolio companies during due diligence and during our ownership period.
  2. Seek to grow and improve portfolio companies for long-term sustainability and to benefit multiple stakeholders, including on environmental, social and governance issues. To that end, we will work through appropriate governance structures (e.g. board of directors) with portfolio companies with respect to environmental, public health, safety, and social issues, with the goal of improving performance and minimizing adverse impacts in these areas.
  3. Seek to use governance structures that provide appropriate levels of oversight in the areas of audit, risk management and potential conflicts of interest and to implement compensation and other policies that align the interests of owners and management.
  4. Seek to be accessible to, and engage with, relevant stakeholders either directly or through representatives of portfolio companies, as appropriate.
  5. Remain committed to compliance with applicable national, state, and local labor laws in the countries in which we invest; support the payment of competitive wages and benefits to employees; provide a safe and healthy workplace in conformance with national and local law; and, consistent with applicable law, will respect the rights of employees to decide whether or not to join a union and engage in collective bargaining.
  6. Maintain policies that prohibit bribery and other improper payments to public officials consistent with the U.S. Foreign Corrupt Practices Act, similar laws in other countries, and the OECD Anti-Bribery Convention.
  7. Respect the human rights of those affected by our investment activities and seek to confirm that our investments do not flow to companies that utilize child or forced labor or maintain discriminatory policies.
  8. Provide timely information to our limited partners regarding ESG, and work to foster transparency about our activities.
  9. Encourage our portfolio companies to advance these guidelines.