New Mountain Capital is committed to “building great businesses” and responsibly investing in companies that contribute positively to society and simultaneously generate strong financial risk adjusted returns. This strategy of business building leads to job creation and a strong commitment to improving the quality of each portfolio company. It’s our view that the integration of sustainability factors helps minimize risks, improve operational efficiencies and enhance financial returns. We partner with management teams to identify and capitalize on value creation opportunities with the aim of building stronger, more sustainable companies over the long-term.
NMC has sustainability programs across all strategies including Private Equity, Credit, Net Lease and Strategic Equity – each to a varying degree depending on strategy in accordance with NMC’s Responsible Investing Policy and subject to NMC’s fiduciary duties and applicable contractual and legal obligations.
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Since inception, NMC has emphasized social responsibility, through business building and improving the quality of our portfolio companies which themselves provide valuable and beneficial products and services to society. Over the years, NMC has formalized its commitment to Sustainability and Social Responsibility. The following timeline shows the continuous improvements to NMC’s Sustainability program.
Firm founded with the “Building Great Businesses” mission statement and the idea of creating sustainable businesses for the long-term
First Social Dashboard Published
NMC’s first Responsible Investing Report
Created Inclusion Committee
Created Sustainability Committee
Became a UNPRI Signatory
Hired Sustainability Consultant who later became full-time dedicated resource
Engaged Gravity Climate on Carbon Footprint
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Standard set of KPIs assessed for all companies regardless of their industry.
Industry-specific KPIs, based on the SASB framework, which may be different for each company.
Deal teams assess all prospective investments on NMC’s 24 Key Sustainability Metrics during due diligence.
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Air & Water Pollution
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Deforestation
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Energy Efficiency
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Hazardous Materials
05
Land Degradation
06
Resource Depletion
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Waste Management
08
Water Scarcity
01
Air & Water Pollution
02
Deforestation
03
Energy Efficiency
04
Hazardous Materials
05
Land Degradation
06
Resource Depletion
07
Waste Management
08
Water Scarcity
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Job Creation
02
Customer Satisfaction
03
Data Protection & Privacy
04
Inclusion & Equal Opportunities
05
Employee Attraction & Retention
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Labor Standards
07
Product Safety & Liability
08
Supply Chain Management
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Job Creation
02
Customer Satisfaction
03
Data Protection & Privacy
04
Inclusion & Equal Opportunities
05
Employee Attraction & Retention
06
Labor Standards
07
Product Safety & Liability
08
Supply Chain Management
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Accounting Standards
02
Anti-Competitive Behavior
03
Board Composition
04
Bribery & Corruption
05
Business Ethics
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Compliance
07
Executive Remuneration
08
Risk Management
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Accounting Standards
02
Anti-Competitive Behavior
03
Board Composition
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Bribery & Corruption
05
Business Ethics
06
Compliance
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Executive Remuneration
08
Risk Management
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SASB Standards guide the disclosure of financially material sustainability information by companies to their investors. Available for 77 industries, the Standards identify the subset of sustainability issues most relevant to financial performance in each industry. The SASB Standards became a resource of the IFRS Foundation as of August 2022.
The PRI is the world’s leading proponent of responsible investment. It works to understand the investment implications of environmental, social and governance factors and to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions. The PRI acts in the long-term interests of its signatories, of the financial markets and economies in which they operate and ultimately of the environment and society as a whole.
The EDCI is a global partnership of private markets stakeholders committed to streamlining the industry’s historically fragmented approach to collecting and reporting sustainability data. Our mission is to create a critical mass of meaningful, performance-based, and comparable private company sustainability data. NMC has been a member of the EDCI since 2022.
RepRisk is a pioneer in sustainability data science that leverages the combination of AI and machine learning with human intelligence to systematically analyze public information and identify material ESG risks. RepRisk’s mission is to provide transparency on business conduct risks to help drive accountability and responsible behavior of companies, thus creating positive change.
The American Investment Council (AIC) is an advocacy and resource organization established to develop and provide information about the private investment industry and its contributions to the long-term growth of the U.S. economy and retirement security of American workers. Member firms of the AIC consist of the country’s leading private equity and growth capital firms united by their successful partnerships with limited partners and American businesses.
Small group focused on unifying firm goals and commitment to inclusion initiatives at NMC and portfolio companies
Systematically tracking leadership profiles across the Firm and the portfolio to oversee internal talent and portfolio recruiting
Leverage and expand sources of senior members to ensure access to best talent
Developing inclusion resources and policies for consideration internally and at portfolio companies
Working with organizations that are focused on identifying top talent in Financial Services, wherever that talent may be
The ILPA Diversity in Action initiative brings together limited partners and general partners who share a commitment to advancing equity and inclusion in the private equity industry. The goal of the initiative is to motivate market participants to engage in the journey towards becoming more inclusive and to build momentum around the adoption of specific actions that advance inclusivity over time.
Phelps Forward provides career counseling, networking and job placement to first generation college students and graduates, who are from low-income backgrounds, and who are the best and the brightest at top tier colleges throughout the US. Through market research and interviews with leaders at financial services companies, they identify the traits and qualifications that lead to great hires within a client’s business. From their roster of highly prepared college students and graduates, they match job candidates to employers’ needs.
INROADS has been a leader in advancing diverse youth in corporate America. We offer talented, underrepresented youth a pathway from high school to college and throughout their career that breaks through the glass ceiling and closes the opportunity and wealth gaps. INROADS career development pathway extends a support system that can last a lifetime.
Please see the Disclosures for more information.