Since our founding, Vector has been committed to responsible investment policies that comply with applicable laws and regulations while identifying risks for our investors and portfolio companies. Thus, we have integrated ESG guidelines into our due-diligence, investment decision-making, and on-going portfolio management processes. We believe these guidelines contribute to the long-term success of our investments and also enhance the communities in which we operate. Given our focus on technology investments, we have identified six key ESG focus areas that are routinely reviewed as part of our due-diligence process. Vector’s ESG diligence checklist includes, but is not limited to:
Data Privacy and Freedom of Expression
Companies with strong governance procedures protect all information collected from users, employees, and customers in an ethical way that reduces reputational and regulatory risks while providing clear guidance and transparency on 3rd party access to data collected in compliance with all rules and regulations globally.
Companies with best-in-class security protocols carefully manage the threat of outside intrusion into databases and software. These practices are focused on frequent employee education with strong documentation to increase awareness around cyber-attacks, social engineering threats, and all firewalls and security measures to protect company assets.
Managing Systemic Risks From Technology Disruptions
Customers have grown increasingly reliant on continuous access to software platforms and technology to conduct their business. Companies should invest in the continuous improvement and management of mission critical risks that may lead to technology disruptions that can result in loss of customers and revenue.
Intellectual Property & Competitive Behavior
The management of Intellectual Property (IP) is a significant investment in time and resources; both to protect internal IP and ensure that the company is not infringing on another’s IP rights. Strong management practices in this area can create value through limiting risk and cost while spurring innovation and growth.
Managing A Global, Diverse & Skilled Workforce
Companies that demonstrate a commitment to a diverse workforce often realize value through bringing a variety of viewpoints to the organizations and better understanding the needs a of a diverse and global customer.
Companies are moving towards more cloud-based solutions and data processing intensive solutions which are consuming greater amounts of energy. Energy consumption tracking and management can help create energy efficiency initiatives that drive cost savings while reducing environmental impact.