Corporate responsibility is paramount for any business to succeed. StepStone is firmly committed to integrating ESG factors in our investment process, and within our own company.
As an investor and allocator of more than $280 billion in private markets, we recognize our responsibility to advocate for the promotion and adoption of responsible investment standards at both the general partner and asset levels. By becoming a signatory of the United Nations Principles of Responsible Investing and the Task Force on Climate-related Financial Disclosures, we are supporting these organizations and recognize their frameworks as leading in the responsible investing arena.
Since our founding, ESG considerations have been integral to our investment philosophy and process. Fundamentally, we believe effective management of ESG factors drives stakeholder returns. From an initial screening, to a comprehensive review by our Responsible Investment Workgroups and Responsible Investment Committee, we thoroughly vet every investment opportunity for its ESG and climate risks and opportunities. We use a range of tools including the Sustainability Accounting Standards Board and the Global Real Estate Sustainability Benchmark where relevant. This is a requirement before the Investment Committee can approve any investment.
We seek to protect value and help deliver risk-adjusted returns so that our clients achieve their investment objectives. We recognize that different institutions are seeking to implement varied responsible investment objectives. As a result, we aim to work with our clients to implement their varied negative restrictions/exclusions or positive thematic exposures. We work to ensure that ESG and climate considerations are embedded into our investment due diligence and decision making. The incorporation of ESG and climate considerations is critical if we are to estimate each asset’s true economic price and ensure that investor capital is allocated as efficiently as possible.
Mandated by charter, our Responsible Investment Committee is a group of senior professionals who represent different asset classes, regions, and functional areas at the firm. Beyond continually improving how we account for ESG in our investment decision making, the Committee promotes new initiatives to drive excellence and sustainable business practices in our own operations.
UN PRI Signatory
Each year we submit a comprehensive review of how we implement our Responsible Investment Committee. Download a copy of our latest assessment below.