Our Impact

ESG Framework

Environmental, social, and governance factors are not a layer on top of our investment process. They are the process.

100%

Investments ESG-scored

2030

Net-zero target

12th year

Of ESG reporting

Our Approach

Integrated, Not Appended

ESG is not a separate analysis we add after we decide to invest. It is part of how we assess risk, value assets, and make decisions. A company with poor governance is a higher-risk credit. A property with poor energy efficiency is a higher-cost asset. These are investment facts, not ethics.

Since 2013, every Ark Invest investment has received an ESG score at acquisition and is tracked annually against that baseline. We use that data to set priorities for operational improvement and to measure progress.

E

Environmental

Energy efficiency, carbon footprint, water use, and biodiversity. We track Scope 1 and 2 emissions for all majority-owned assets and set annual reduction targets.

S

Social

Labor practices, community impact, health & safety, and supply chain standards. We apply IFC Performance Standards across all investments in emerging markets.

G

Governance

Board composition, anti-corruption, transparency, and alignment of interests. All Ark Invest portfolio companies are required to maintain an independent audit committee.

How It Works

ESG at Every Stage of Ownership

01

Pre-investment Screen

Every opportunity is screened against our exclusion list and scored against 24 ESG factors before we proceed to full due diligence.

02

Due Diligence

Environmental site assessments, governance reviews, labor audits, and stakeholder mapping are standard components of our investment due diligence.

03

100-Day ESG Plan

Post-acquisition, we develop an ESG improvement plan with measurable targets. The plan is approved by the portfolio company board.

04

Annual Reporting

All portfolio companies report ESG metrics annually. Results are published in our Impact Report and shared with limited partners.

Transparency

Our Commitment to ESG Reporting

We have published an annual Impact Report since 2013. The report covers ESG performance across all majority-owned portfolio companies, our firm-level diversity metrics, and progress against our 2030 net-zero commitment. We follow TCFD, SASB, and UN PRI reporting frameworks.

  • TCFD Task Force on Climate-related Financial Disclosures
  • SASB Sustainability Accounting Standards Board
  • UN PRI Principles for Responsible Investment (Signatory since 2014)
  • SFDR Sustainable Finance Disclosure Regulation (Article 8 classification)

Get in Touch

Our Latest Impact Report

Download our 2024 Annual Impact Report for full ESG performance data.