ESG Policy

Stonebridge Partners – ESG Policy

Updated 01.12.2024

Stonebridge Partners, LLC (“Stonebridge”) seeks to adhere to responsible investment practices throughout the investment process in order to achieve the highest, most stable returns for its investors and ensure continuous success of its managed entities. As such, Stonebridge is taking steps to actively align the short- and long-term interests of our employees, members, managed entities, local communities, and planet by means of integrating environmental, social, and governance (ESG) standards both internally and throughout our investment process.

Integration of ESG factors (see below for a sample list of factors) creates both direct and indirect benefits for our stakeholders manifested in such ways as reduced costs, more efficient use of time and resources, a more productive work environment, increased safety, and higher employee retention. Additionally, consideration of ESG factors facilitates a more robust due-diligence process crucial to achieving better risk-adjusted returns.

Using the UN Principles of Responsible Investing to guide our policy, Stonebridge has established a set of commitments to upholding ESG standards during various stages of the investment process.

At the screening/pre-investment stage, Stonebridge seeks to:

1. Assign an ESG champion at the Partner level to actively bring ESG issues to light during the deliberation process, or engage outside experts
2. Discuss the possibility of deliberate sectoral exclusion, targeting industries that historically violate ESG considerations, such as industries that engage in mining, tobacco products, our distribution or manufacture of weapons
3. Evaluate company willingness to engage in ESG reporting and initiatives in a transparent fashion
4. Make decisions in accordance with the UN’s 6 Principles of Responsible Investing:
   • Principle 1: Incorporate ESG issues into investment analysis and decision-making processes.
   • Principle 2: Be active owners and incorporate ESG issues into ownership policies and practices.
   • Principle 3: Seek appropriate disclosure on ESG issues by the entities in which investments are made.
   • Principle 4: Promote acceptance and implementation of the Principles within the investment industry.
   • Principle 5: Work together to enhance effectiveness in implementing the Principles.
   • Principle 6: Report on activities and progress towards implementing the Principles.

At the operating stage, Stonebridge strives to:

1. Identify ESG concerns and enact mitigants on a regular annual basis
2. Discuss potential impacts of operational decisions to the well-being of identified stakeholders
3. Honor local labor laws, along with health and safety ordinances and regulations
4. Measure and communicate progress within ESG considerations at investment exit
5. Identify and report any material ESG events/violations to members

Firmwide, Stonebridge seeks to:

1. Maintain a Code of Ethics and related policies to address corruption and bribery, cybersecurity, among other practices that help ensure business integrity, taking care to conduct firmwide training annually
2. Practice resource efficiency to the best of our ability, including but not limited to: double sided printing, recycling, conservation of food and energy, and sourcing products locally where possible
3. Ensure fair employment strategies, including being an equal opportunity employer and ensuring fair wages and basic benefits to our employees
4. Encourage our employees to take part in philanthropic firm-wide events to help foster community engagement
5. Discuss ESG progress during annual meetings

Stonebridge will be regularly re-evaluating and amending its ESG policy to integrate changing best practices.

Examples of ESG Factors