ESG

H3 has actively engaged with ESG since 2014, when it adopted its first formal ESG policy.

H3 is dedicated to conducting its business in accordance with optimal ethical and professional standards. As part of this aim, we recognize the importance of environment, social, and governance (“ESG”) issues in both our portfolios and our management company.

Investment

A PRI signatory since 2015, H3 has developed methodologies for incorporating ESG into its research process

ESG considerations

The H3 research process includes an assessment of a wide range of factors, including a wide range of ESG considerations, that could influence an investment’s current or future value, risks, and impact on stakeholders associated with the investment. The specific ESG factors reviewed may vary based on the country, deal, industry, and investment structure under review.

Private Credit ESG

The H3 Private Credit Team’s ESG investment process provides a framework for the identification and management of ESG risks and opportunities throughout the private credit investment cycle. The Team works with partner companies during each stage of the investment cycle to meet applicable ESG requirements, identify value add opportunities, and to monitor and manage ESG-related risks.

ESG challenges

H3 believes that the “mainstreaming” of ESG is a critical development in the asset management industry, and supports industry-, investor- and regulator-lead initiatives. While the market contends with certain challenges, such as appropriate portfolio carbon footprinting methodologies, timeliness and accuracy of issuer disclosure, and the treatment of short-selling in an ESG context, H3 will continue to strive to be a thought leader amongst emerging market managers/investors.

Company

H3 is equally committed to the implementation of ESG principles at the management company level

01

A carbon neutral company

H3 measured its global carbon footprint for 2019, 2020, and 2023 and offset 641, 57, and 128 tonnes of carbon dioxide, respectively, through support of projects, such as a solar cooker project in a rural area of Zhangye, Gansu province in northwestern China. As such, H3 received certification in 2019, 2020, and 2023 as Carbon Neutral Company under the Carbon Footprint Standard.

02

Diversity and Inclusion

H3 recognizes the importance of maintaining a diverse workforce in an inclusive working environment. H3 strives for fairness in hiring, actively seeks out diverse candidates, and regularly provides staff with training on anti-discrimination and anti-harassment.

03

Engagement

H3 actively participates on various industry ESG working groups, including the AIMA ESG working group. H3 has also historically spoken on industry panels which address topics related to the integration of ESG in portfolio management, ESG regulation, and/or management company ESG matters, like diversity and inclusion. Additionally, we strive to encourage as many industry stakeholders as possible, including our service providers and vendors, to adopt more sustainable business practices, and we have incorporated an ESG analysis as part of our standard due diligence process.

H3 ESG
Documents

Useful Documents

H3 ESG Policy
H3 Diversity Disclosure - June 2025
H3 Modern Slavery Policy 2025

Copyright
© 2025 H3 Capital Management. All Rights Reserved.