The hardest decisions with investment are not between good and bad or right and wrong, but between two goods or two rights - like between black and white.
- Joe Andrew
Investment Policies
With fewer than 25000 employees globally, LOMGroup and its shareholding companies have a relatively acceptable an impact in terms of the environment and other corporate responsibility issues. However, with assets under management of approximately over €1 billion we recognise that our decisions as an investor potentially matter to a broad range of people.
We are, therefore, committed to investing responsibly and believe that:
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the effective assessment of ESG matters has a positive effect on the value of our investee companies and of LOMGroup itself;
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compliance with local laws and regulations may not be enough to meet global expectations, deliver value and enhance our reputation and license to operate; and
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it is vital that we seek to identify all material ESG risks and opportunities through our due diligence at the point we invest and effectively manage those risks and opportunities during the period of LOMGroup’s investment.
We have a clear and comprehensive Responsible Investment (‘RI’) policy which is embedded into our investment and portfolio monitoring processes. In our experience, companies with high ESG standards are typically better run, better at identifying and managing their business risks and generate better earnings growth.
The policy sets out the businesses in which LOMGroup will not invest, as well as minimum standards in relation to ESG matters which we expect new portfolio companies to meet, or to commit to meeting, over a reasonable time period.
The policy applies to all our investments, irrespective of their country or sector.
Our RI policy has been integrated into our investment and portfolio management processes and procedures and is supported by detailed guidance notes, external advisers and dedicated internal resource.
LOMGroup commits to use its influence as an investor to promote a commitment in its investee companies to:
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comply, as a minimum, with applicable local and international laws and regulations and, where appropriate, relevant international standards (such as the IFC Performance Standards and the ILO Fundamental Conventions), where these are more stringent than applicable laws;
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mitigate any adverse environmental and social impacts and enhance positive effects on the environment, workers and relevant stakeholders; and
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uphold high standards of business integrity and good corporate governance.
UN Principles of Responsible Investment
Since 2011, we have been signatories to the UN Principles of Responsible Investment. We also have a clear and comprehensive responsible Investment Policy which is embedded into our investment and portfolio monitoring processes.
Investment focus
LOMGroup places its focus on a broad range of businesses, Finally it is engaged in 8 sectors mainly. through various life cycles and in multiple regions, but its portfolio companies share certain important characteristics. Investment decisions are based upon four core pillars. Companies should :
1. Have a unique competitive position, through:
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Unique product or service
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Patent or brand
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Market leading position
2. Have Growth potential, through i.a.:
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Buy-and-build, especially in construction sector and project development
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Innovations
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New markets
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Partnerships
3. Have Strong underlying trends, such as:
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Environmental friendly energy production or energy distribution (We regard wind-, nuclear-, partly hydro enrgy not to !)
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Ageing population, employment of women, disableds
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E-business
4. Be active in preferred geografies:
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EU
Other measurment tools applied at an investment
LOMGroup is a subscriber to the Global Impact Investing Rating System (GIIRS), and a signatory to the Principles for Responsible Investment (PRI). concomitantly the relevant criteria to mesure the aptness of an investment are transparent.