Wellspring Capital believes a genuine obligation to high standards of ethics and business practices is vital and consistent with our commitment to seek to optimize returns for our investors. We feel that by considering environmental, social and corporate governance (ESG) factors as we make investment decisions and oversee the operations of our portfolio companies allows us to fashion long-term strategies for our portfolio companies, which is essential to creating sustainable value for our stakeholders.
We have established policies and practices to ensure that we put these goals into all our activities. Wellspring Capital has committed to:
- Consider environmental, public health, safety, and social issues associated with target portfolio equity investments when evaluating whether to make a particular investment, as well as during the period of ownership;
- Be accessible to, and engage with, relevant limited partners, as appropriate, to foster transparency with regard to our ESG performance;
- Seek to grow and improve portfolio companies– to that end, Wellspring will work through appropriate governance structures (g., board of directors) with portfolio companies on environmental, public health, safety, and social issues, with the goal of improving performance and minimizing adverse impacts in these areas;
- Remain committed to compliance with applicable national, state, and local labor laws in the countries in which Wellspring invests; support the payment of competitive wages and benefits to employees; provide a safe and healthy workplace in conformance with national and local law; and, consistent with applicable law, respect the rights of employees to decide whether or not to join a union and engage in collective bargaining;
- Encourage strict policies that prohibit bribery and other improper payments to public officials consistent with the U.S. Foreign Corrupt Practices Act, similar laws in other countries, and the Organisation for Economic Co-operation and Development Anti-Bribery Convention;
- Respect the human rights of those affected by Wellspring’s private equity investment activities endeavor that Wellspring does not invest in companies that utilize child or forced labor or maintain discriminatory policies;
- Ensure all Wellspring employees are aware of the firm’s culture of social responsibility (including, by providing ESG training for relevant employees) and encourage them to strengthen that culture; and
- Encourage Wellspring portfolio companies to advance these same principles in a way that is consistent with their fiduciary duties.
In developing our policy, we have given consideration to a range of codes and standards, including the United Nations Principles for Responsible Investment (“UNPRI”), the UN Global Compact, and the Private Equity Growth Capital Council’s Guidelines for Responsible Investment.