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.