HMC’s Commitment to ESG Principles

The Responsible Investing Policy of Harbert Management Corporation (“HMC”) emphasizes the commitment HMC has made to investing capital in a responsible manner and sets forth our objectives of integrating environmental, social and governance (“ESG”) principles into all of our business practices; furthering principles of responsible investing through stakeholder engagement; and encouraging accountability through transparency with our investors and other stakeholders. Click here to read the HMC Responsible Investing Policy.

The HMC ESG Committee is composed of representatives of executive management, investment teams, and fund administration. The Chair of the HMC ESG Committee is supported by and has direct reporting responsibility to the Board of Directors.

Through our ESG initiatives, HMC has made a positive impact in a variety of areas. We include below just a few highlights of HMC’s ESG initiatives which are more fully explained in our ESG Fact Sheet. Click here to read the HMC ESG Fact Sheet.

Environmental Responsibility

  • HMC recognizes the unique nature of the environment, as well as individual and corporate dependence on its continuing health, and it is therefore HMC’s policy to conduct business and affairs to comply with both the letter and spirit of all environmental laws and regulations.
  • We have developed Sustainable Office Guidelines to encourage green office practices throughout the firm and drive employee engagement through reduced power consumption, reduced paper use, increased recycling, increased use of video-conferencing and other environmentally-friendly practices
  • Our Real Assets investment strategies lead HMC’s incorporation of environmental considerations in their investment processes.
  • Harbert United States Real Estate strategy implements energy efficiency initiatives at is properties and seeks Energy Star and LEED certifications.
  • Harbert Infrastructure strategy monitors and reports on the emissions practices of its underlying assets and ensures that all of its underlying assets operate in accordance with their respective environmental permits and restrictions.
  • Through 2021, nine Harbert Infrastructure investments have received GRESB Five Star Ratings.
  • Gulf Pacific Power, LLC, a separately managed account backed by commitments from the California Public Employees’ Retirement System (“CalPERS”) and HMC affiliates, was ranked the #1 Americas Diversified Private Equity Infrastructure Fund for the second consecutive year.
  • Desert Sunlight, a solar PV asset in California, ranked the #1 U.S. Solar PV Power Generation Asset in the operations and maintenance category and achieved GRESB Five Star Status.
  • Rocky Caney Wind Portfolio ranked as a Top 3 U.S. On-Shore Wind Power Generation Asset in the operations and maintenance category.
  • Astoria Energy I ranked as a Top 3 U.S. Gas-Fired Power Generation Asset in the operations and maintenance category and achieved GRESB Five Star Status in its inaugural assessment.
  • Washington County Power achieved GRESB Five Star Status.
  • Harbert Infrastructure managed assets achieved a combined average score of approximately 87% and all assets achieved GRESB Four or Five Star Status.

Social Responsibility

  • Harbert Employees Reaching Out (“HERO“) is an employee run and funded Foundation that provides direct financial assistance to people who have been affected by natural disasters, medical conditions or temporary financial hardships to help them regain their independence and self-sufficiency. Since inception, approximately 600 HERO grants have been awarded in excess of $3.6 million.
  • The HERO Small Business Relief Fund was launched in April 2020 to help local small businesses impacted by the COVID-19 pandemic. The program was funded by HMC shareholders and employees. In under five weeks the HERO team evaluated over 300 applications and funded over $1 million of grants to provide direct financial assistance to 67 qualifying small businesses.
  • HMC is very involved in its communities with an established program of employees volunteering as drivers for Meals on Wheel and is recognized as a top per capita donor to United Way of Central Alabama.
  • HMC’s senior management has contributed approximately $50 million to non-profit, higher-education, and charitable organizations over the last five years.
  • HMC was ranked #5 “Best Places to Work in Money Management” in the 2020 Pensions & Investments (100-499 employee category) list. HMC was also included in the 2019 list.
  • HMC is a participant in the University of North Carolina’s Real Estate Diversity Initiative (“REDI”) program to provide mentorship and summer internships to underrepresented groups.
  • HMC is sponsoring two high potential female employee applicants for the Momentum Women’s Executive Leadership and Upward Early Career programs.
  • HMC has established the role of New Parent Advocate to provide support and advice while an employee is going through this major life transition and returning to the workplace.

Governance Responsibility

  • HMC is privately held by 22 of its employees and officers. Partners, senior leadership and fund managers invest in each fund on the same terms and conditions as others investors, aligning their interests with those of our investors.
  • HMC affiliates are subject to regulatory supervision by the SEC, FINRA and FCA. They have consistently received positive results from periodic exams and have received no referral or enforcement actions from any of their regulators.
  • HMC is proud to have a long audit history with a number of the top accounting firms including PricewaterhouseCoopers (since HMC’s inception in 1993), EY (since 2003), Warren Averett (since 2014), Deloitte (since 2017) and RSM (since 2017).