ESG
We believe that Environmental, Social and Governance (“ESG”) considerations directly and materially impact investment outcomes.
As long-term investors, we believe focusing on ESG throughout the investment lifecycle allows us to avoid undue risk and better identify valuable opportunities.
Integrating ESG into our investment process helps ensure that we are aligned with our clients, their beneficiaries and our collective long-term interests. ESG fits squarely with our commitment to excellence in bottom-up investment analysis.
Dynamix Capital's ESG policy provides more information regarding our approach to ESG integration.
ESG Frameworks and Memberships
" Dynamix Capital's ESG integration is a team effort. With strong sponsorship from Dynamix Capital's leadership, we empower our analysts to integrate ESG analysis throughout the investment lifecycle. "
Our Approach to ESG
As one of the world’s largest alternative asset manager, we are uniquely positioned to make a positive impact through our investments and to strengthen the communities in which we live and work
OUR APPROACH
We believe it is not only possible to do good while doing well – it’s imperative.
Changing the Status Quo
We are always seeking a better approach – from better tools to better services – to the challenges that face our clients, our people and the communities we serve. A good company challenges the status quo; a great company changes it for the better.
Integrating ESG
Environmental, Social and Governance principles have been integral to Dynamix Capital’s corporate strategy since our founding. We are committed to responsible investing practices and incorporate them into everything we do.
Empowering Our People
It is not enough to help others in need. Social responsibility starts right at home with the thousands of people at Dynamix Capital who are committed to giving back. That’s why we’re so dedicated to our people. The more we do for them, the more they can do for their communities.
" 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. "
2020 ESG Report
To learn more about some of the measures we are taking and the positive impact we have made, you may download our latest report outlining our recent environmental, social and governance strategy and initiatives.
Download and Preview our ESG reports Download and Preview our 2021 Stewardship reportOur 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:
Strive to minimize the environmental impact of our operations and improve our efficient use of resources over time.
Support the goal of net zero greenhouse gas (GHG) emissions by 2050 or sooner.
Uphold strong governance practices:
Foster a positive work environment based on respect for human rights, valuing diversity, and zero tolerance for workplace discrimination, violence or harassment.
Operate to the highest ethical standards by conducting business activities in accordance with our Code of Business Conduct and Ethics. Maintain strong stakeholder relationships through transparency and active engagement.
Ensure the well-being and safety of employees:
Foster a positive work environment based on respect for human rights, valuing diversity, and zero tolerance for workplace discrimination, violence or harassment.
Operate with leading health and safety practices to support the goal of zero serious safety incidents.
Be good corporate citizens:
Foster a positive work environment based on respect for human rights, valuing diversity, and zero tolerance for workplace discrimination, violence or harassment.
Operate to the highest ethical standards by conducting business activities in accordance with our Code of Business Conduct and Ethics. Maintain strong stakeholder relationships through transparency and active engagement.
Dynamix Capital's Net Zero Commitment
We support the goal of net zero greenhouse gas (‘GHG’) emissions by 2050.
Over the past 8 years, Dynamix Capital has been actively involved in building 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 Arizona 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.
Dynamix Capital 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 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 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 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.
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.
ESG Frameworks and Memberships
Net Zero Asset Managers Initiative
Dynamix Capital 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.
Dynamix Capital is a signatory of the Principles for Responsible Investment (PRI), formally demonstrating our ongoing commitment to responsible investment and environmental, social and governance (ESG) best practices. The PRI is one the world’s leading proponents of responsible investing, with an emphasis on understanding the investment implications of ESG factors and supporting an international network of investor signatories in incorporating these factors into their investment and ownership decisions.
The Sustainability Accounting Standards Board (SASB) connects businesses and investors on the financial impacts of sustainability. SASB Standards enable businesses to identify, manage, and communicate financially material sustainability information to investors. SASB Standards are industry-specific and are designed to be decision-useful for investors. They are developed using a process that is evidence based and market informed.
The Prince’s Accounting for Sustainability Project (A4S) was established by HRH The Prince of Wales in 2018 to mobilize action and leadership by the finance and accounting community to address the challenges to the economy and society posed by issues such as climate change, increasing depletion of and demand for natural resources, urbanization and inequality. A4S seeks to inspire action by finance leaders to drive a fundamental shift towards resilient business models and a sustainable economy.
A global nonprofit organization, BSR works with its network of more than 250 member companies and other partners to build a just and sustainable world. From its offices in Asia, Europe, and North America, the nonprofit develops sustainable business strategies and solutions through consulting, research, and cross-sector collaboration.
Integrating ESG considerations into our investment process
Our PRI 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 Dynamix Capital 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 Dynamix Capital employees are mandated to complete an in-depth anti-bribery and corruption (ABC) training seminar annually. Dynamix Capital maintains an ethics hotline to report suspected unethical, illegal or unsafe behavior. The reporting website can be accessed through this link. 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 Dynamix Capital’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 Dynamix Capital. 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, Dynamix Capital conducts an in-depth investigation to determine root causes and formulate remediation actions.
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.
$700m
AGGREGATE VALUE OF OUR GREEN FINANCINGS IN RENEWABLE POWER, REAL ESTATE, INFRASTRUCTURE AND PRIVATE EQUITY
Sustainable financeSustainable finance
Dynamix Capital strives to be a leader in sustainable finance products, which support adaptation to global climate change challenges.
Community engagement and philanthropy
We recognize that activities that support growth and development include involvement in interests outside of day-to-day employment activities. We view our philanthropic activities as an opportunity to engage our people, support their development and be of benefit to the local communities in which we operate. Our two-pronged global approach includes a global matching program that provides each employee the ability to donate to a not-for-profit of their choice and receive a match from the Firm as well as a capital pool for each office to support philanthropic activities that are important to our people and facilitate relationship building in support of collaboration.
Careers
We integrate sustainable investment practices into the heart of what we do. We want the investments we make to be a driving force for change: for our clients, their beneficiaries and the world we live in. To do this, we need people that are passionate about making a change in this world.
Innovatory Statements
Statements contained in this community that are not historical facts are based on our current expectations, estimates, projections, opinions or beliefs. Such statements are not facts and involve known and unknown risks, uncertainties, and other factors. Prospective investors should not rely on these statements as if they were fact. Certain information contained in this community constitutes “Innovatory statements,” which can be identified by the use of innovatory terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “target,” “estimate,” “intend,” “continue,” “forecast,” or “believe” or the negatives thereof or other variations thereon or other comparable terminology.
Due to various risks and uncertainties, including those described in the prospectus, actual events or results or our actual performance may differ materially from those reflected or contemplated in such innovatory statements. No representation or warranty is made as to future performance or such Innovatory statements. In light of the significant uncertainties inherent in these statements, the inclusion of this information should not be regarded as a representation by us or any other person that our objectives and plans, which Dynamix Capital considers to be reasonable, will be achieved.
You should carefully review the “Risk Factors” section of the prospectus for a discussion of the risks and uncertainties that Dynamix Capital believes are material to its business, operating results, prospects and financial condition. Except as otherwise required by federal securities laws, Dynamix Capital does not undertake to publicly update or revise any innovatory statements, whether as a result of new information, future events or otherwise.