XPV Responsible Investment Policy (DRAFT)

Responsible Investing: It’s in our DNA

XPV Water Partners invests in companies that confront and solve critical water challenges. These companies help the world mitigate and adapt to climate change, improve water quality, and use water efficiently. This is consistent with our core purpose: to make a difference in water. 

With our unique focus on water, XPV Water Partners is driven to make an impact beyond financial returns. We build successful, resilient businesses that promote diversity, equity, and inclusion and conduct themselves with integrity. As such, we integrate ESG principles into every step of our responsible investment strategy and process. 

As the world’s leading investor with this focus, we also have the unique privilege to convene our network of partners and leaders to elevate the conversation on global water challenges and solutions.

We are committed to making a positive impact on the lives of our people, the places they work, the communities they serve, and the planet we all share.

Our Approach

XPV Water Partners is a proud signatory of the UN’s Principles for Responsible Investment. We integrate ESG factors from deal sourcing to exit:

  • Deal sourcing: Our unique theme-based approach to deal sourcing is informed by our comprehensive analyses of the world’s most pressing water challenges and environmental concerns.
  • Due diligence: At the prospective investment level, we conduct a detailed ESG evaluation during due diligence and summarize material findings in investment memoranda presented to the investment committee.
  • Managing investments: After a deal has closed, the portfolio company engages in XPV’s proprietary FLOW Growth Accelerator System, which includes championing ESG performance and requires regular ESG reporting throughout the life of the investment.

At XPV, we hold ourselves to the highest standards of ethics and operate with integrity. At each phase of XPV’s investment and value delivery, team members responsible for the activities are also accountable for implementing and upholding our responsible investing policy. 

Achieving ESG principles requires an active, vigilant approach. We strive to listen to our partners and continuously improve and evolve our policies and practices.

Our Areas of Focus

Through our investments, we incorporate responsible investing and ESG impact into action in these ways:

XPV’s ESG Focus Areas
Water and Climate Impact:
Improve water security, mitigate the impact of climate change, and contribute to improving our overall environmental footprint.
Health, Safety, and Wellness:
Promote industry-leading standards for occupational safety, invest in physical and emotional wellbeing of our employees, and foster a healthy workplace culture.
Diversity, Equity, and Inclusion:
Build and foster an inclusive and diverse workplace that provides equal opportunity, reflects the diversity of stakeholders, and results in innovation and creativity.
Stakeholder Relations:
Be a thought leader, work together with leaders in the water ecosystem to raise awareness about water challenges and advocate for innovative solutions. 

Commitment to Diversity, Equity and Inclusion

XPV recognizes a diverse workforce comprised of A-players as a competitive advantage. Our success as a Fund Manager is grounded in the caliber, commitment and output of our people. We are committed to attracting, retaining and growing the best available talent to drive innovation, growth and performance. 

XPV is a values-driven organization. The following core values guide our decisions, interactions and day-to-day work:

  • Walk the Talk – Practice what you preach and do what you say.
  • Attentive Urgency – Speed is important but so are the details.
  • Together We Win – Sharing the fruits of victory and the pains of defeat.
  • Exhibit Curiosity – Asking better questions equals better decisions.
  • Relentless Improvement – How are you and the firm getting better every day.

In support of and alignment with our core values, we believe in treating all employees and candidates with respect and fairness. We strive to facilitate an environment in which all employees are supported to maximize their potential and progress their careers, regardless of any differences between employees, including but not limited to differences in: ethnicity and race, gender, age, place of origin, physical ability, income and socioeconomic status, sexual appearance and orientation. 

We recognize the importance of reflecting the diversity of the communities in which we and our portfolio companies operate. Further, we are committed to creating career opportunities for diverse populations within these communities. All hiring and promotion decisions will be driven purely by candidate qualifications, fit to role and to our core values. 

Policy Details and Scope

Our policy is comprised of 3 key areas:

  • Recruitment
  • Performance Management and Career Growth 
  • Personal and Professional Development

Recruitment

We believe in the power and effectiveness of diverse teams. A variety of perspectives and inputs help us to design more comprehensive investment and portfolio support programs and to make more informed decisions. To ensure we attract a diverse slate of candidates across all roles that XPV recruits for, our recruitment process incorporates a set of deliberate, consistent and repeatable tactics designed to mitigate any potential unconscious bias and focus the hiring managers purely on candidate qualifications. 

Given the importance of our core values as a driver of inclusive behaviours, our recruitment process assesses all candidates relative to their fit with our values. Ultimately, hiring decisions are dependent upon this fit – candidates who do not align with our core values will not move forward in our process. 

Performance Management and Career Growth

XPV operates as a meritocracy and rewards top performance. All employees are promoted on the basis of living our core values and of their personal and team performance, specifically based on the achievement of milestones. 

Personal and Professional Development

XPV recognizes that there are demographic groups who have long been disadvantaged. We are committed to creating opportunities for these groups by accelerating their personal and professional development through the design and implementation of targeted, relevant programs. 

Diversity, Equity and Inclusion Policy Accountability

The Diversity, Equity and Inclusion policy will be integrated into our day-to-day business activities. The XPV team shares a collective responsibility to uphold the Diversity, Equity and Inclusion policy. Specifically, hiring managers are accountable for implementing the policy across recruitment efforts, and team leaders are accountable for ensuring that the policy is upheld on all performance assessments and promotion decisions.

XPV’s Diversity, Equity and Inclusion policy will evolve to reflect industry best practices and continuous feedback from XPV employees and other key stakeholders. The Talent Principal is responsible for leveraging these insights to develop recommended updates to the policy on an ongoing basis. Diversity, Equity and Inclusion programs, targets and results will be reported on and made accessible to all employees, investors and other key stakeholders. The policy will be reviewed and approved at least annually by the Executive Team. 

Diversity, Equity and Inclusion Policy Roll-Out and Implementation

This policy will be communicated to all XPV employees through a presentation and in writing. Any updates to the policy will also be communicated verbally and in writing. The Diversity, Equity and Inclusion policy will comprise a component of the onboarding experience for all new employees. 

Diversity, Equity and Inclusion Policy Enforcement

All employees are expected to be aware of XPV’s Diversity, Equity and Inclusion policy and share the accountability of upholding the policy, just as they are expected to live our core values on a day-to-day basis. All issues and instances of non-compliance will be brought to the attention of the Executive Team and will be dealt with immediately and on a case-by-case basis.