Dolma as an Impact Investor

Dolma fully recognizes the importance of ESG factors in the sourcing, making and operation of investments and considers that a proactive approach to ESG issues is necessary for the protection and enhancement of the value of investments in the long term. Furthermore, Dolma believes that ongoing measurement and reporting on appropriate non-financial indicators is essential for sustained impact performance.

The terms ‘ESG’ and ‘impact’ cover a wide-ranging set of standards, processes, approaches and outcomes that are both qualitative and quantitative in nature.  In simple terms, Dolma seeks to embody the qualitative aspects at the level of the fund manager through a set of standards and processes that are followed throughout the investment lifecycle, which are then agreed and implemented at the underlying portfolio company level, governed by provisions in shareholders agreements.

Dolma seeks to capture what can be appropriately quantified and measured at portfolio company level, in terms of intended non-financial performance (alongside standard reported data). Dolma has developed a set of impact performance indicators, consistent with the Sustainable Development Goals and the 169 underlying targets, which are collected, assessed and reported on annually.

An example of how these qualitative and quantitative elements come together can be seen in the impact theme of gender equality, which is fundamental to Dolma’s purpose.

Dolma embodies gender equality at fund manager level: two members of its senior management team of six are female, as are six members of the total team of 14, exceeding the leadership and employment thresholds set by the 2x Challenge. At portfolio company level, Dolma measures female employment by function (management, skilled, unskilled roles) and by sector, and reflects the quality of gender policies and compliance, compensation levels and other aspects to form a gender equality score.