Equilibrium’s mission to “transform our planet into sustainable prosperity through markets” requires an unwavering commitment to measurement, monitoring, and reporting.
As an asset manager, our success is dependent on core capabilities in managing risk, time, and judgment. Equilibrium’s Sustainability Framework 2.1 is built to support these core functions. We have built our unique investing and operating experience into this “2.1” release of our Sustainability Framework. The Framework serves multiple purposes, incorporating: 1) a legal framework for corporate governance; 2) globally recognized standards of alignment; and 3) metrics capable of driving operational performance.
Our thinking during the construction of the Framework was shaped by a number of underlying “Principles of Usage”, including:
• Customizing to our business. Each component is chosen to reflect what we do, in terms of economic, social, and environmental productivity.
• Driving value. The Framework reflects our ability to drive value in our operational decision-making via measurements of accountability, productivity, and impacts.
• Communicating. The Framework allows us to report, disclose, and benchmark our impacts in a transparent manner.
• Recognizing the need for continuous improvement. Our “humility” Sustainability Principle forces us to face the negative and positive impacts of our work, refine reporting capabilities, and relate what we do to emergent standards, especially where tied to market value.
• Making choices. We applaud increased global awareness of ESG metrics and standards and believe in the need to carefully select relevant Framework components from this broad collection of measurement structures and criteria. Deliberate choices were made in the refining of the Framework to include relevant metrics capable of driving value, productivity, and impacts, as well as corporate governance and stakeholder communication.
We focus on hard performance data and a select few global standards vs. anecdotal, aspirational commentary, and third-party certifications and standards.
The result is a proprietary lens through which we evaluate financial and non-financial outcomes. The Framework is embedded throughout the lifecycle of our assets.
Our intention is to continually improve our impact assessment capabilities while above all, keeping this work honest and transparent.
We believe that our Sustainability Principles are core to our value creation.