Responsible Investment Policy
Overview
The mission of Sixth Street is to deliver compelling risk-adjusted returns while managing risks and conducting our business with high standards of integrity. We believe that environmental, social and governance (“ESG”) principles can also affect performance. As described below, we assess ESG matters together with financial criteria as part of our investment process.
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 without constraints across sectors, geographies and asset classes. Our credit focused strategy means that Sixth Street may have limited access to ESG-related information and limited ability to influence or control portfolio company activities. We do not employ ESG focused or impact strategies.
- For those investments in which we have control, we integrate ESG considerations into certain investment decisions. We assess ESG risks as part of our due diligence process and factor potentially significant impacts into our credit underwriting;
- For those investments where we have influence through governance rights, to the extent that ESG-related information is available to us, we factor potentially significant impacts into our credit underwriting and re-evaluate investment decisions 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 that 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 Committee
Policy Supervision: ESG Oversight Committee
Date of Last Review: August 2022
Date of Next Review: August 2023