Environmental, Social, and Governance Practices

Forward looking investments in cloud-based infrastructure

Our Commitment to Responsible Investing

We believe that Environmental, Social, and Governance (“ESG”) principles are vital to building strong companies and delivering long-term value for our investors.

We at Cloud Equity Group recognize that our investment and business decisions give us the opportunity to impact the world positively. Our Environmental, Social, and Governance practices and policies guide us in our effort to be responsible stewards of our clients who have entrusted us with their investment capital.

Scope and Limitations

The purpose of this policy is intended to create a framework for our approach to ESG across Cloud Equity Group’s internal operations and investment strategies. Where Cloud Equity Group maintains control of a company, it seeks to work with the company to appropriately integrate and monitor progress on material ESG issues into business processes.

Cloud Equity Group will appropriately incorporate the functional elements of this policy when it determines it has limited ability to conduct diligence or influence and control the integration of ESG considerations in an investment. Examples of such cases at the investment level include where Cloud Equity Group is a minority shareholder, has limited governance rights, or other circumstances that affect Cloud Equity Group’s ability to assess, set, or monitor ESG-related performance goals.

Roles and
Responsibilities

Cloud Equity Group understands the importance of ESG in driving long-term success and is committed to investing responsibly by:

  • Incorporating ESG policy into our investment decision-making and management practices where relevant.
  • Communicating our responsible investment approach, progress, and goals transparently to our investment partners.
  • Maintaining our own internal governance and culture ensures that we act as a good citizen in the communities in which we operate.
1

Pre-Screening to Evaluate Potential

(a) Assesses whether there are any critical ESG or reputational concerns concerning target companies, operators, and, where applicable, sponsors.

2

Conducting Legal/Compliance Diligence

(a) Analyze material ESG risks and opportunities relevant to the industry or target company, including climate change risks and other portfolio-wide considerations and opportunities where appropriate.

3

Investment Team’s Evaluation of Documents and Findings

(a) Track all relevant findings, such as critical risks and opportunities in the investment discussions and memoranda, as they pertain to the issuer or target company.

4

Post-Investment Monitoring and Management

(a) Engage and strategize on value creation efforts. Document efforts on relevant issues and incidents, including ESG risks and opportunities, where possible in portfolio management committee discussions and memos.

Cloud Equity Group Investments

Cloud Equity Group systematically engages with majority-owned portfolio companies to encourage ESG integration within the business. Our engagement tactics, in collaboration with investment teams, value creation team, company management, and board members, may include but are not limited to the following:

  • Identifying material ESG risks and opportunities in investment diligence
  • Individual meetings with company management to build an ESG value creation plan
  • Monitoring of ESG progress and implementation throughout the investment lifecycle
  • Providing resources to achieve ESG milestones and positive business practices

Environment

  • Carbon Emission Reduction
  • Energy Management & Conservation
  • Regulatory Compliance
  • Waste Management

Social

  • Employee Engagement
  • Human Resources
  • Philanthropy & Community Engagement
  • Responsible Supply Chain Management

Governance

  • Data Privacy
  • ESG Systems
  • Ethics & Compliance
  • Reporting & Transparency

Transparency and Reporting

By reporting on its progress and outcomes at the firm level, Cloud Equity Group strives to make our adherence to these ESG policies within our investment decisions transparent. This format may vary between written public reports, informal verbal updates, or confidential fund reports delivered to our fund investors.