Engagement with Policy Makers and Industry Associations

Capital Dynamics regularly engages with policy makers and industry associations as part of our commitment to actively shape the future of RI in the Alternative Investment landscape.  We do this through both direct engagement with regulators and active participation in working groups and collaborative initiatives. These engagement actions play an important role in driving home the value proposition of RI in the private markets while also reinforcing our belief that managers and investors must be given pragmatic tools and approaches to implementation.

In 2023, we conducted the following engagement activities:

Sign-on letter: Joint Call for ISSB Adoption

We are proud to announce our participation in the PRI-led sign-on letter advocating for the global adoption of the International Sustainability Standards Board (ISSB) reporting standards. By joining this collective call, we have expressed our strong support for the urgent implementation of harmonized Responsible Investment data. This move underscores our commitment to enhancing transparency, accountability, and sustainability in business practices worldwide, facilitating a unified approach to ESG reporting that benefits stakeholders and global sustainability goals alike.

The sign-on letter is available at: https://www.unpri.org/driving-meaningful-data/joint-statement-from-lseg-pri-un-sse-and-wbcsd-on-issb-standards/12426.article?adredir=1 

 

SFDR industry consultation on the fundamental review of the Sustainable Finance Disclosure Regulation

Our involvement in working groups to participate in the SFDR (Sustainable Finance Disclosure Regulation) industry consultation on its fundamental review exemplifies our commitment to stewardship activities with policy makers. By actively engaging in these consultations, we aim to influence and shape sustainable finance policies that align with our mission of promoting transparency and accountability in financial markets. Our active participation ensures that our insights and expertise in private markets contribute to the development of regulations that support sustainable investment practices. We greatly value such industry consultations as they provide a platform for collaboration and dialogue, fostering a regulatory environment that benefits society at large. As part of our response to the consultation, we expressed strong support for the proposed labelling scheme to enhance the implementation of the SFDR requirements and further promote transparency on the Responsible Investment performance and ambitions of investment funds. 

 

Co-lead IIGCC working group to develop the Private Equity component of the Net Zero Investment Framework

A core component of our Stewardship approach around climate-related risks and opportunities is our active involvement in industry-wide initiatives, aimed at raising awareness of the financial materiality of climate change.

Over the course of the past two years, Capital Dynamics has co-led the IIGCC working group to steer the Net Zero Investment Framework (“NZIF”) component for Private Equity. The guidance aims to create synergies in the market among LPs and GPs to collectively drive the decarbonization of portfolio companies, and builds upon a pragmatic, science-aligned approach the private equity industry can support. The NZIF PE guidance takes into account how GPs and LPs interact already today, therefore not introducing more complexities. For example, the recommendations for aligning a PE portfolio with net zero take into consideration the fund cycle and the varying degrees in which GPs and LPs can exert influence over portfolio companies, such as in a fund-of-funds, Secondaries and continuation funds context.

The guidance is available at: https://www.iigcc.org/resources/net-zero-investment-framework-component-for-the-private-equity-industry

 

Working group participation in Renewable NI and Wind Energy Ireland

Capital Dynamics’ Clean Energy business line is an active member of the leading industry groups in Ireland Renewable NI and Wind Energy Ireland. The groups liaise daily with regulators and Capital Dynamics shares dispatch down reports for all of our Northern Ireland renewable energy assets, which are then used to analyze and for instance to challenge Eirgrid to improve the system.