Sustainability
at Kedaara
Capital

At Kedaara Capital, sustainability is central to our investment philosophy. We seek to deliver strong financial returns while creating value through ESG integration. By mitigating risks and pursuing responsible investments, we aim to contribute to a more sustainable world. Through active engagement, we work to strengthen governance and enhance sustainability practices across our portfolio companies.

ESG across our investment cycle

At Kedaara Capital, we integrate Environmental, Social, and Governance (ESG) aspects throughout our investment lifecycle to ensure sustainable and responsible practices. Our process begins with a Screening and Exclusion List to assess environmental and social risks, followed by a thorough Evaluation/Diligence Phase to incorporate essential ESG considerations. During the ESG Monitoring phase, we maintain engagement with portfolio companies through regular communication and assessments. Our Oversight incorporates collaboration with external consultants and the strengthening of audit and risk management committees. At the Exit phase, we review the ESG performance of our portfolio companies, assuring alignment with global sustainability goals. Through these steps, Kedaara Capital promotes investments that are both financially rewarding and socially responsible.

Embracing PRI standards

As a responsible investor, we are dedicated to adhering to the Principles for Responsible Investment (PRI). These internationally recognized principles guide our investment strategies, ensuring that we prioritize both financial performance and sustainability. By aligning with the PRI, we commit to promoting ethical practices and contributing to a more sustainable future in our investment decisions.

ESG across our investment cycle include:

Screening and Exclusion List – Risk screening process to evaluate target companies on environmental and social risks
Evaluation/Diligence Phase – We conduct due diligence which also covers social and environmental aspects for investments
ESG Monitoring – We ensure engagement and monitoring with its portfolio companies by regular communication, conducting ESG assessments
Oversight – We work with the portfolio companies to form and/or strengthen audit committees, form and/or strengthen risk management practices and also engage with external consultants
Exit – During the exit phase, we look to review the ESG performance of the portfolio companies

Key activities in Alignment with the 6 Principles of PRI

We have developed a Responsible Investment Policy and ESG Implementation Manual.
We screen all potential investments through our exclusion list and categorize them with high, medium, and low risks.
We regularly engage with our portfolio companies to gauge their ESG maturity, highlight key risks, and identify opportunities for value creation.
We ensure the initial screening of E&S aspects of the company. Apart from this, we also cover ESG aspects during the due diligence phase.
All companies report on their progress on ESG KPIs through internal ESG engagements or public regulatory reporting.
We plan to report regularly on our ESG integration efforts and share the same with our investors.

Objectives of our ESG Framework for Portfolio Assessment

Identifying key ESG material topics relevant based on the size, scale and, segment of the business of the company
Understanding potential ESG risks
Benchmarking management approach on ESG
Unlocking ESG value creation opportunities
Assessing regulatory compliance & maturity of ESG management practices
Tracking ESG performance on a yearly basis
Development of an ESG performance improvement plan
ESG performance assessment framework is developed for portfolio companies based on internationally recognized standards and frameworks such as Sustainable Accounting Standards Board (SASB), Dow Jones Sustainability Index (DJSI), Morgan Stanley Capital International (MSCI) and high level alignment to Sustainability Development Goals (SDG).

Beyond Finance: ESG Commitment in Portfolio Evaluation

Our unique ESG maturity evaluation method for portfolio companies is built on internationally recognized frameworks, enabling us to accomplish the following objectives