Responsible Investment Policy

Overview

Sixth Street seeks to deliver compelling risk-adjusted returns while conducting our business with high standards of integrity. We believe that environmental, social, and governance (“ESG”) factors can affect the performance of our investments. Considering ESG factors allow us to spot risks, anticipate forward trends, and inform our overall investment decision-making.

Philosophy

Sixth Street’s responsible investment philosophy is guided by its overall values and investment approach.

Values: Responsibility is a core Sixth Street value. We are accountable for our business, to our investors, to our team, and to our communities.
Investment Approach: The firm sees the integration of ESG factors as a way to understand the durability of an investment theme or an individual business – namely its ability to survive and grow. A theme or business that relies on, for example, regulatory inattention, environmental degradation, or undermining its customers’ wellbeing, is ultimately at risk. With that lens, the firm evaluates ESG factors to better understand how an investment’s durability matches its expected time horizon, efficacy of downside protection, and ability to bring creative solutions to bear.

We believe attention to ESG factors, considered in the context of our fiduciary obligations to our clients and the objective of maximizing returns, has the potential to deliver value to our stakeholders.

Commitment to Responsible Investment

In 2020, Sixth Street became a signatory to the United Nations-supported Principles for Responsible Investment (“PRI”). Sixth Street’s approach to responsible investment is informed by six principles set forth by the PRI.

Our diversified, collaborative investment platforms and flexible, long-term capital base allow us to invest thematically and across sectors, geographies, and asset classes. Sixth Street may face constraints in certain of its strategies (e.g., credit focused) around access to information or influence. We do not employ ESG focused or impact strategies.

At a minimum the firm aims to follow the guidelines below to distinguish the responsible investment approach by asset class/strategy and its respective level of control:

For those investments in which we have control, we integrate ESG considerations into investment decisions where appropriate. We assess ESG risks and merits as part of our due diligence process and factor potentially significant impacts into our underwriting;
For those investments where we have influence such as through governance rights, to the extent that ESG-related information is available to us, we factor potentially significant impacts into our underwriting and evaluate investment decisions, where appropriate, as part of our overall diligence process; and,
For certain investments where we have no control or limited ability to assess or monitor ESG-related factors, we endeavor to identify and, where appropriate, elevate the consideration of ESG issues.

ESG Oversight and Governance

Sixth Street will:

Provide training and other tools to its employees, to ensure they understand the Responsible Investment Policy, and can identify, assess and where appropriate, raise relevant ESG issues;
Where appropriate, raise material ESG issues to the ESG Oversight Committee; and
Monitor the implementation of the Responsible Investment Policy.

Sixth Street will continually update our Responsible Investment Policy to meet the needs of our platforms and the developing norms and expectations of our stakeholders.

All investment professionals are responsible for annually reviewing and acknowledging the Sixth Street Responsible Investment Policy.

Policy Sponsors: CRO, CCO, GC, key stakeholders from Investment Committees

Policy Supervision: ESG Oversight Committee

Date of Last Review: August 2023

Date of Next Review: August 2024