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May 24 / 2023
May 31 / 2024
Full Year
Overview
Building on our core values, we are weaving sustainability further into the fabric of our business. We believe a clear and compelling sustainability vision – one that unites our team across geographies, functions, and roles – is a pre-requisite to delivering our maximum positive impact. Our program flows seamlessly from our culture, animating our employees’ day-to-day work, ultimately enabling us to act swiftly with an Ares voice.
We pursue an ESG strategy that is designed to address the most material issues to our business, starting with a Corporate Sustainability program – how we lead by example through our own corporate operations – and then scaling through a Responsible Investment program – how we amplify our impact through our investment platform.
We believe that by being a leader for integration of environmental, social and corporate governance factors in our business, we can in turn help drive greater adoption within our investment and portfolio management processes and help create better investment outcomes. Whether it’s protecting and growing the capital of our clients, creating long-term value for our shareholders or aligning our interests with business partners, we are committed to supporting sustainable practices that help generate and support environmental and social factors - not just now, but for years to come.
In the years ahead, the differentiated ESG program will be the one that embeds itself in the heart and mind of every employee, informing their daily work. Our aspiration is when someone asks ‘who is responsible for ESG?’ we all will raise our hands.
Partner, Head of ESG
Corporate Sustainability
How we lead by example through our own corporate operations
We are committed to leading by example on climate change through our own corporate practices.
We embrace our differences and offer a multitude of programs and policies that support our diverse workforce and enrich our work environment.
We partner with charitable organizations to make an impact in our communities.
Responsible Investment
How we scale our sustainability practices throughout our investment platform
Mobilizing an entire investment platform to act on a clear ESG vision requires a deliberate approach to governance.
In 2020, we explicitly laid out our thinking on ESG governance by clarifying the respective roles of our
Board of Directors, Executive Management Committee, ESG Team, the groups of ESG Champions embedded in investment strategies as well as the front-line investment and portfolio management professionals. Through this model, we collaborate to tailor our ESG strategy to each investment group and drive ownership and accountability across the platform.
Board of Directors and Executive Management Committee + ESG Team
Roles & Responsibilities
- The Executive Management Committee conducts an annual review of the ESG Team's business plan as prepared by the ESG Team.
Accountability
- The Executive Management Committee ensures that we maintain a platform-wide, strategic, long-term ESG business plan.
- The ESG Team executes on a business plan designed to seek to deliver value to Ares and our stakeholders.
ESG Team + ESG Champions
Roles & Responsibilities
- The ESG Team defines the ESG objectives, implementation steps and processes for our investment platform.
- The ESG Team partners with designated ESG Champions to adapt the platform-wide approach to the bespoke dynamics inherent to their investment strategy
Accountability
- The ESG Team enables strategies to develop a tailored ESG implementation plan.
- The ESG Champions author an ESG integration approach that is practical and bespoke to the underlying strategy. ESG Champions refine the approach over time.
ESG Champions + Investment Committees + Investment and Portfolio Management Teams
Roles & Responsibilities
- With technical support from the ESG Team, ESG Champions serve as a local resource within strategies and review the ESG integration plan annually for priority improvements.
- Investment Committees and Teams review the outputs of ESG integration steps throughout the investment lifecycle.
- Frontline investment and portfolio management professionals execute ESG-related tasks on a deal-by-deal basis.
Accountability
- ESG Champions ensure quality and fulfillment of ESG integration outputs.
- Investment Committees ensure implementation at the fund level.
- Investment and portfolio management professionals ensure implementation at the individual deal level.
