Responsible Investing
Our Approach
Hanover is committed to value creation through responsible business practices. We believe that it is important to manage material sources of regulatory, operational, and reputational risk and also be aware of potential positive drivers of investment returns arising from the changing business environment. We therefore consider sustainability factors throughout our investment cycle alongside other key drivers of risk and returns. By doing so we aim to mitigate risks and build better businesses.
For more information, refer to our Responsible Investing and Stewardship Policies below. While Hanover commits to considering material sustainability factors, we do not take into account the adverse impacts of our investment decisions on sustainability factors (see full disclosure below).
We have supported the UN Principles for Responsible Investing since 2020.
How we do it
Pre-investment
Systematic approach assessing the material sustainability factors affecting potential investee companies and how these might impact the risks and opportunities of the investment.
Hold Period
Ownership Policies & Practices focused on responsible investment such as:
- 100-day plans to improve governance infrastructure.
- Stewardship activity promoting responsible practices.
- Monitoring portfolio companies and supporting them as they address sustainability risks and opportunities.
- Reporting to stakeholders including annual PRI reporting.
Exit
We will help our portfolio companies plan for the future and will provide useful information about our portfolio companies’ key sustainability metrics at exit.
Focus on Sustainability
Environmental, social and governance considerations are important throughout all investment stages. We believe that a robust approach to these factors mitigates risks, enhances competitiveness, and aligns with investor priorities. This creates a firm foundation for sustainable value creation that benefits stakeholders and society. By actively engaging with portfolio companies, Hanover encourages sustainable practices that drive long-term financial performance and resilience.
Hanover strives to protect our investors' economic interests. Identifying adverse ESG factors won't automatically prevent an investment, but we will collaborate with portfolio companies to improve their sustainability during our ownership as part of a wider focus on business risks and opportunities.
