We commit to constructive, long-term engagement with the companies and funds in which we invest, believing that careful and thoughtful stewardship is essential to addressing Environmental, Social and Governance (‘ESG’) risks and to driving positive change.
Our approach
We believe that responsible investment and business success go hand in hand. We are committed to building businesses for the long term and consider the ESG impact of the investments that we own.
We expect to invest in businesses and private equity funds that will:
- Grow, provide employment and generate economic benefit in an environmentally and socially responsible way, both during and after our ownership
- Take a responsible approach towards the environment and society, based on good governance practices
Responsible investment / responsible corporate working group
Chaired by our CEO, the RI/RC Working Group advises and assists in the development and implementation of Caledonia’s approach to sustainability matters, including climate-related issues. The group meets regularly throughout the year.
The working group:
- Advises and assists in the continued development of and implementation of our approach to ESG matters across the business.
- Continues to develop understanding of climate-related matters.
- Seeks to ensure that ESG matters are appropriately factored into decision- making processes.
- Supports the development of our reporting, particularly on climate-related matters.
Public Companies
We aim to invest in global businesses with recognised brands, intellectual property and strong market positions that have a good track record of delivering attractive returns.
Guided by deep fundamental research with a disciplined focus on quality and resilience, selection risk is managed by analysing numerous characteristics for each company. These include:
- High-quality and durable business models that enable long-term compounding
- Attractive end markets, for example with secular growth tailwinds or limited competition
- Management with strong capital allocation who think like owners; ‘culture is key’
- Typical good returns of capital
As active investors focused on the long term, monitoring and engagement forms an important part of how the team operates:
- We exercise our voting rights judiciously. Votes are cast on all our holdings, ahead of shareholder meetings
- We maintain open, direct dialogue with the company to understand key issues
- We will vote with management unless we believe it is contrary to our interests as a long-term shareholder
Our approach means we do not typically invest in capital intensive businesses directly involved in the extraction and production of coal, oil or natural gas.
Private Capital
We look to invest in established businesses with strong financial metrics operating in markets that present attractive opportunities for growth.
As ‘buy to own’ investors, the team works closely with management to support operational improvement, good governance and compliance with relevant sustainability regulations through a lens of value creation and risk management. This is done through the following:
- Board representation to enable active oversight, influence and support on strategic, operational and governance matters
- Regular, direct engagement with management to review existing risks, identify new ones, and monitor progress on key mitigation initiatives
- Structured ESG monitoring – including annual ESG surveys, TCFD-aligned climate risk assessments and company-specific KPIs —allowing us to ensure that risks are well managed and opportunities for improvement are acted upon
Case study
Within Private Capital, our portfolio company DTM successfully achieved B-corp certification in November 2025, marking a significant milestone in its journey to embed responsible business practices at the heart of its operating model.
Download the case study:
Funds
We invest in private equity funds across North America and Asia, with a bias towards lower mid-market buyouts. The portfolio provides attractive diversification, comprising 80 funds managed by 45 experienced managers, providing access to more than 600 underlying companies operating across a range of sectors.
Partnering with over 45 managers and investing in over 80 funds with an underlying portfolio of over 600 companies, our diligence, monitoring and engagement framework is centred on the following:
- Due-diligence: before committing to a manager, we assess how ESG considerations are integrated into their organisation, investment processes and portfolio management
- Ongoing engagement and transparency throughout each fund’s life: we maintain close dialogue with our managers, engaging through regular communications and update meetings. Where we hold an Advisory Board seat, we request that ESG is included on annual meeting agendas. This enables us to stay informed on material risks, emerging issues and the progress of ESG initiatives
- Monitoring ESG performance and climate risk across the portfolio: we continue to refine the proxy calculation methodology to increase accuracy and enhance our monitoring to provide deeper insights across the portfolio