Karmijn is an investment fund that focuses on SME companies managed by diverse management teams. They focus increasingly on socially responsible investment. Therefore, they have an ESG policy that is based on the United Nations-supported Principles for Responsible Investment (UN PRI) Initiative, an international network of investors working together to put a number of principles for responsible investment into practice. Furthermore, Karmijn is supported by the European Union through the “Competitiveness and Innovation Framework Programme” (CIP).
Karmijn’s business strategy includes the environment, society and governance (ESG). In line with these values and business strategy TheRockGroup has a recurring role with Karmijn and assists with practical steps relating to their policies. This includes: reporting on Karmijn’s ESG activities, sound boarding and thinking along on the actions and impacts of their investments Also, we engage with the companies in investment portfolios.
As a long-term project, TheRockGroup is measuring the footprint of companies in Karmijn’s portfolios over the years and we help manage them. Together with the portfolio companies, TheRockGroup creates sustainability or ESG policies with and for the companies, where each policy handles the relevant themes for that individual company.
The work that TheRockGroup does for Karmijn is divided into three phases:
Pre investment– Before Karmijn invests in a company, TheRockGroup performs a due diligence on sector level to see whether investing in that company will entail sector-specific risks. If the answer to that question turns out to be yes, we dig a little deeper into that company and advise Karmijn on what to do.
Post investment – After Karmijn has invested in a company, we engage with the businesses in order to tackle those sustainability problems that are relevant for the specific organization. This can be in all aspects of the broad term sustainability, varying from human rights in the supply chain to the circularity of the wood that is used. We also aim to enlarge the positive impact a company might have.
De-Investment– Before Karmijn de-invests from a company, we create an ESG passport which becomes part of the Investment Memorandum. In this ESG passport, we describe the impact that the investment of Karmijn has yielded.