Responsibility

We recognise the importance of our impact on society and the environment and seek to engage in responsible investment through adoption of strict ESG control measures.

Why do we engage in responsible investing?
A fiduciary duty to both investors and society.

Since 2007, Magnum has invested in Iberia with the objective of creating value by building stronger, better companies, not only to generate superior returns for our investors, but also to create value to other stakeholders such as employees, governments and other social organizations.

As members of society and the modern economy, both Magnum and its portfolio companies have a responsibility to participate in driving economic, social and environmental progress and building better and safer communities. Additionally, we strongly believe that responsible investment, both applied in our company selection process and during the entire investment lifecycle, can be an important driver of financial value creation.

We are convinced that by enhancing economic activity, innovating, creating jobs and driving tax revenues and social contributions, we may play a significant role in improving the societies where we operate, which is crucial to creating and protecting long-term value at our portfolio companies and delivering investors’ financial expectations.

More information available in on our Approach to Responsible Investing.

How do we enact responsible investment principles?

Magnum considers itself an active shareholder and industrial partner and as such, applies an active, disciplined and transparent approach to enacting responsible investing principles. We recognize the importance of our impact on society and the environment and therefore seek to include environmental, social and governance (ESG) criteria in all stages of our decision-making and investment processes by:

• Using ESG factors to steer investment decisions, including avoiding investing in companies whose businesses run counter to our nonfinancial values and ethical principles.

• Adopting strict control measures that go beyond regulatory compliance in areas such as environmental stewardship, consumer protection, human rights, and racial and gender diversity.

• Setting targets, designing initiatives and monitoring level of performance on nonfinancial objectives across our portfolio companies.

• Providing investors and other stakeholders with timely information on ESG-related topics, and publicly disclosing the most significant aspects of our responsible investment commitments.

More information available in our ESG Guidelines.

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Responsible investing governance

Every team member and committee at Magnum is aware of the firm’s commitment to responsible investing and is therefore responsible for incorporating said principles to his, her or its respective activities, contributing to the development of the organisation’s ESG approach and stewardship activities.

Additionally, a ESG Committee has been appointed for ensuring due consideration and attention is given to these matters and that ESG policies, systems and procedures are embedded in Magnum’s and its portfolio companies’ decision-making processes. The Committee will review and, where necessary, update the Responsible Investment Policy to reflect on-going efforts, emerging requirements from stakeholders and evolving good practices and to improve the organization’s Responsible Investment approach.

The Committee comprises members across departments and seniorities to maximise diversity of perspectives and allow the firm to form a broader and richer vision of responsible investing related issues.

Third-party memberships, supports and endorsements

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Since 2014, Magnum is a signatory of the United Nations Principles for Responsible Investment.Its performance is assessed by PRI on an annual basis and benchmarked against peers in the industry. The consistently strong results reflect Magnum’s  commitment to said principles.

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Magnum is committed to complying with the best practices of the ILPA guidelines on effective private equity partnership: alignment of interest, governance, and transparency.

Additionally, Magnum proudly endorses initiatives for the achievement of UN Sustainable Development Goals, including climate and environmentrelated initiatives like the Paris Agreement and the Task Force on Climate-related Financial Disclosures (TCFD), and organizations improving gender diversity in the private equity industry such as Level 20.