ESG management is integrated in each step of Solina’s investment process. Solina continuously seeks to improve its processes, behaviours and policies.
Prior to Investment Solina undertakes rigorous due diligence around all the business aspects of each investment driven by ESG issues before taking any investment decision.
Areas for diligence typically include:
Portfolio Company anti-bribery and anti-corruption compliance, including establishing a detailed understanding of the provenance of each license, the background and reputation of former and current company principals and the beneficial ownership of local partners and affiliates;
Portfolio Company neither belonging to OFAC-listed countries nor to countries subject to UN Security Council Sanctions;
Portfolio Company compliance with environmental requirements;
Risk analysis and management systems, including operational health and safety policies and performance assessment;
The government’s plans and objectives for the oil and gas industry and how the development of the target assets fits into the context of broader development plans
The impact on and attitudes of the local community to the company and project as well as the level of ‘localisation’ and employment of local staff and senior management; and
The general governance framework and the alignment of various stakeholders of a target