Our ESG Commitment
While Clearlake’s priority is to deliver favorable returns for its investors, Clearlake believes that investing responsibly and delivering favorable returns are not mutually exclusive and are in fact complimentary. To that end, Clearlake considers ESG principles to be a crucial component of developing strong, resilient companies and assets that deliver long-term value, and we are committed to integrating ESG within our investment process and operating philosophy. By factoring a broad set of ESG considerations into our investment process and operational improvement approach, O.P.S.® (Operations, People, Strategy), we believe we can improve the performance of our portfolio companies, while simultaneously achieving extrinsic benefits such as improving our communities, increasing employee retention, better stewarding resources, and reducing exposure to reputational risk. We strive to:
- Serve as a responsible business partner that represents reputable standards of ethics and professionalism;
- Preserve and create opportunity for future generations by encouraging our portfolio companies to apply their time, talent, and expertise to building more sustainable and prosperous communities;
- Manage the social, environmental, and economic impact of our operations in line with the expectations of our employees, investors, partners, suppliers, and the community;
- Incorporate ESG principles into our own operations by partnering with procurement providers that share the Firm’s support of ESG integration – As a private equity investor, indirectly provide products, solutions and/or services which incorporate ESG principles to improve our portfolio companies;
- Develop and implement programs to achieve key performance indicators (“KPIs”) and ESG targets as part of our O.P.S.® framework; and
- Maintain awareness of environmental issues to minimize risks through sustainable business practices which include core products, solutions and/or services provided by our portfolio companies.
2022: From Commitment To Action
A year of progress translating our ESG commitments into actionable integration processes through engagement, measurement, and reporting. To further our commitment of transparently sharing our ESG progress, we have published our inaugural ESG report.
Clearlake Impact Initiative
Founded in 2021, the Clearlake Impact Initiative (CII) is a philanthropic grantmaking and impact investment foundation focused on supporting education, health and wellness, equal opportunity, and beneficial social change.
CII‘s sponsorship activities have included UCLA Health’s Operation Mend, which provides surgical and medical treatment, comprehensive psychological evaluation and support, and intensive treatment programs to individuals suffering from PTSD, traumatic brain injury and substance use disorder.
Clearlake Impact Initiative Values
Nothing should be construed to assert or imply that Clearlake or any of its investment vehicles rely solely upon ESG and/or ESG factors in connection with their investment decisions such that ESG factors are materially favored over other factors. Nothing should be construed to assert or imply that Clearlake or any of its investment vehicles target a specific ESG impact. Certain of the observations presented may be based on information provided by the management of the underlying portfolio company and/or other information obtained during the course of Clearlake’s work
Transparency of sustainability risk policies and no consideration of adverse impacts of investment decisions on sustainability factors
Clearlake has adopted an Environmental, Social, and Governance Policy (the “Policy”) to help to integrate consideration of financially material ESG risks into the investment processes and oversight of portfolio companies across the funds it manages and/or advises, consistent with and subject to any applicable legal, regulatory, fiduciary or contractual duties. Neither Clearlake nor any of its affiliates consider adverse impacts of investment decisions on “sustainability factors” as specifically defined by Regulation (EU) 2019/2088 as existing policies and procedures are appropriate, proportionate and tailored to the investment strategies of funds managed and/or advised by Clearlake and its affiliates. Clearlake will continue to monitor changes to applicable requirements of Regulation (EU) 2019/2088 and may, in the future, consider such adverse impacts, as appropriate in the context of its funds and subject to any applicable legal, regulatory, fiduciary or contractual duties.