We operate long-term assets and businesses across the globe. This approach dictates both our investment strategy and our commitment to environmental, social and governance (ESG) practices. We believe that value creation and sustainable development are complementary goals. Throughout our operations, we are committed to practices that have a positive impact on the communities in which we operate.
Our ESG principles are embedded throughout our operations and help us ensure that our business model will be sustainable well into the future.
Mitigate the impact of our operations on the environment
- Environmental stewardship: Strive to minimize the environmental impact of our operations and improve our efficient use of resources over time.
- Net Zero Commitment: Support the goal of net zero greenhouse gas (GHG) emissions by 2050 or sooner.
Ensure the well-being and safety of employees
- Employee well-being: Meet or exceed all applicable labor laws and standards in jurisdictions where we operate, which includes respecting human rights, offering competitive wages and implementing nondiscriminatory hiring practices.
- Health & safety: Aim to have zero serious safety incidents within our businesses by working toward implementing consistent health and safety principles across the organization.
Be good stewards in the communities in which we operate
- Community engagement: Engage with community groups that might be affected by our actions to ensure that their interests, safety and well-being are appropriately integrated into our decision-making.
- Philanthropy: Encourage our employees to participate in the communities in which we operate.
Conduct business according to the highest ethical and legal/regulatory standards
- Governance, ethics, and fairness: Operate with high ethical standards by conducting business activities in compliance with applicable legal and regulatory requirements, and with our Code of Business Conduct and Ethics.
- Transparency: Be accessible to our investors and stakeholders by being responsive to requests for information and timely in our communication.
Deriv Finance Net Zero Commitment
We support the goal of net zero greenhouse gas (‘GHG’) emissions by 2050.
Over the past 25 years, Deriv Finance has built one of the largest private renewable power businesses in the world. With installed renewable generating capacity of 20 GW, we now produce more than enough green energy to power London and will more than double that amount once our development portfolio is brought online
We recognize that further renewable power capacity must be rapidly scaled to replace fossil fuel generation and meet expanding global electricity demand so that the world can eliminate the over 70% of global emissions that come from final energy consumption as quickly as possible.
Deriv Finance intends to build on this leading position in renewable power and do much more to contribute to the transition to net zero:
We will go further
In addition to continuing to make major investments in renewable energy globally, we will manage our investments to be consistent with the transition to a net zero economy. As a recent signatory to the Net Zero Asset Managers initiative, we have made a commitment to investing aligned with net zero emissions by 2050 and implementation of science based approaches and standardized methodologies through which to deliver these commitments.
We will help accelerate the transition to Net Zero
We will catalyze companies onto Paris-aligned net zero pathways through our new Global Transition investment strategy, focusing specifically on investments that will accelerate the transition to a net zero carbon economy.
We will collaborate
We will work with leading private sector initiatives to advance the role of finance in supporting the economy-wide transition, to accelerate capital flows consistent with the Paris Agreement, and to promote widespread adoption of decision-useful methodologies to support credible transition planning, analysis and investing.
We are committed to transparency
- We will track and report GHG emissions consistent with GHG Protocol and PCAF standards.
- We will publish decarbonization plans every five years consistent with the Paris Agreement.
- We continue to align our business with the TCFD recommendations and are targeting to incorporate TCFD disclosures for the 2022 fiscal year.
We will continue to pursue industry-leading returns
We will continue to pursue industry-leading returns for our investors, consistent with our long track record of building the backbone of a more sustainable global economy.
ESG Frameworks and Memberships
Net Zero Asset Managers Initiative
Deriv Finance is a signatory to the Net Zero Asset Managers initiative, underscoring our long-standing commitment to driving the complementary goals of sustainability and value creation across our investments and operations. The Net Zero Asset Managers initiative is a group of international asset managers committed to supporting the goal of net zero greenhouse gas emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5 degrees Celsius; and to supporting investing aligned with net zero emissions by 2050 or sooner.
Integrating ESG considerations into our investment process
Our commitments include incorporating ESG factors into our investment decisions, starting with the due diligence of potential investments through to the exit process. We tailor ESG due diligence to each investment, and we create post-investment remediation plans for material ESG considerations. For all potential investments, we use internal experts and a variety of ESG frameworks to identify material ESG factors and utilize external consultants where appropriate. This analysis includes everything from ensuring environmental, legal and regulatory compliance to the identification of opportunities to add value or mitigate risk in our portfolio. Our investment teams use an ESG due diligence guideline to ensure consideration of material ESG risks and opportunities. These teams then provide a detailed memorandum to the Investment Committee outlining the merits of the transaction and disclosures relating to risks, including material ESG issues, and potential mitigation strategies. All investments made by Deriv Finance must be approved by the Investment Committee and must incorporate ESG matters into their evaluation, including anti-bribery and corruption, health and safety, and other ESG considerations.
Upon company acquisition, we create a tailored integration plan to ensure that all material matters, including ESG risks and opportunities are prioritized. ESG risks and opportunities are actively managed by the portfolio companies with guidance from our in-house investment teams, primarily through representation on company boards and equivalent oversight bodies where all financial, operational, and strategic elements of the business are reported, considered, and where appropriate, approved. This allows us to draw on local expertise, which provides valuable insight given the wide range of asset types and locations in which we invest. Certain key performance indicators, such as serious safety incidents, are reported regularly to the applicable board or other oversight body.
A strong governance framework
We are always working to maintain sound governance practices to ensure ongoing investor confidence. This involves a continual review of how evolving legislation, guidelines and best practices should be reflected in our approach. For example, we have a zero-tolerance approach to bribery, including facilitation payments, and all Deriv Finance employees are mandated to complete an in-depth anti-bribery and corruption (ABC) training seminar annually. Deriv Finance maintains an ethics hotline to report suspected unethical, illegal or unsafe behavior. Our reporting hotline is managed by an independent third party and is available 24 hours a day, 7 days a week. We also require all portfolio companies in which we have a controlling interest to adopt an ABC policy that is equally stringent to Deriv Finance’s, which entails that portfolio companies install an ethics hotline within six months of acquisition.
Health and safety in our portfolio companies
Employee health and safety is a top priority at Phantoms Trade. We view health and safety as an integral part of the management of our business and therefore consider it a line responsibility best managed by portfolio companies. We have established a safety steering committee, which includes the CEOs and COOs of each business group, to promote common values and a strong health and safety culture, share best practices and monitor serious safety incidents. In the event that a serious incident does occur, Deriv Finance conducts an in-depth investigation to determine root causes and formulate remediation actions.
Fostering diversity & inclusion
Embedded in our culture is a commitment to advancing
diversity and inclusion across our organization. This
begins at recruitment, continues in leadership training
programs and is woven into our policies and procedures.
As a global firm, we know that the best ideas come from
having people from different backgrounds, perspectives,
experiences and skills across all businesses, levels of
seniority and offices.
Training programs set clear expectations for our leaders
in terms of their role in helping all team members
achieve their potential. The training emphasizes
building trust with their teams, becoming aware of
unconscious biases and provides guidance on how to add
rigor to decision-making especially in recruiting,
performance feedback and promotion, with the goal of
creating a more diverse and inclusive environment.
Our internal groups and networks, including a global
Deriv Finance Women’s Advisory Committee and a Diversity
Advisory Committee, actively advise management on how to
make our Firm more welcoming to people from diverse
backgrounds.
Women make up
OF TOTAL EMPLOYEES.
OF INDEPENDENT BOARD DIRECTORS
OF VICE PRESIDENTS AND ABOVE
A commitment to green buildings
Developing properties that take environmental considerations into account is not only a passion, it provides returns on our investments. That’s why 100% of our new developments are being built according to LEED® Gold standards, to proactively address greenhouse gas emissions, energy efficiency, water use, indoor air quality, and other impacts.
