Investing responsibly to deliver risk-adjusted returns
Blue Owl’s Underlying Principles
Blue Owl is committed to the consideration of material environmental, social and governance (“ESG”) issues in connection with its business operations and investment activities. We believe that incorporating material ESG factors into our corporate and investment practices has the potential to meaningfully contribute to the financial returns and shareholder value of the Firm and the organizations in which we invest.
Responsible corporate behavior will have a positive influence on financial performance.
Our stakeholders are focused on how our investment decisions create shareholder value while meeting their investment goals.
Blue Owl will seek to consider material ESG risks, mitigating factors and opportunities, that are likely to impact an investment from initial diligence; to ongoing portfolio management and construction; and ultimately, where relevant, exit.
We encourage transparency and constructive dialogue within our investment process to uphold a responsible investment framework.
It is important to align with partners who invest responsibly, provide appropriate disclosure to our stakeholders, and offer support to our portfolio companies regarding responsible management practices when relevant.
We are committed to working together as a firm to refine our responsible investing practices in an effort to continuously enhance our effectiveness over time and navigate the evolving landscape.
Community Loan Program
Leveraging our business and who we are
1As used herein, “material” should not be equated to or taken as a representation about the “materiality” of any ESG issues or factors under the federal securities or other applicable laws.
ESG Disclosure – Blue Owl’s objective when considering Environmental, Social and Governance (“ESG”) factors is to seek to maximize risk-adjusted returns consistent with the investment objective of the relevant fund as set forth in the partnership agreement and memorandum for such fund. ESG initiatives or practices related to underlying investments do not apply in every instance.
This website should not be viewed in isolation; Blue Owl’s ESG Policy further describes important details and considerations regarding Blue Owl’s ESG investing approach. Blue Owl’s ESG efforts are further supported by its commitment to diversity, equity, and inclusion; read more about the firm’s approach in our latest DEI Policy.
All investments are subject to risk, including the loss of the principal amount invested. This is for informational purposes only and is not an offer or a solicitation to sell or subscribe for any fund and does not constitute investment, legal, regulatory, business, tax, financial, accounting or other advice or a recommendation regarding any securities of Blue Owl, of any fund or vehicle managed by Blue Owl, or of any other issuer of securities.
Past performance is not a guarantee of future results. The views expressed are Blue Owl’s views and may change without notice as market and other conditions change.
Transparency of Sustainability Risk Policy
Blue Owl Capital Inc. (together with its affiliates “Blue Owl”) integrates environmental, social and governance (“ESG”) factors into its investment process. When evaluating investment opportunities, Blue Owl considers ESG risks associated with such opportunities as well as whether there are serious ESG or reputational concerns with regard to prospective portfolio companies or other assets. In particular, Blue Owl evaluates material ESG risks, mitigating factors and opportunities applicable for the asset type (and the industry as a whole).
Based on each fund’s investment objective and investment strategy, Blue Owl considers ESG risks to present a limited near-term impact on the returns of the funds that it manages, with greater impacts likely to be experienced over time. Blue Owl expects to implement mechanisms to identify material ESG issues in making investments in portfolio companies and to periodically evaluate whether such issues are likely to impact the returns of an investment and, consequently, the returns of the relevant fund. Please see our ESG Policy for more information.
No consideration of principal adverse sustainability impacts
Blue Owl has considered, and continues to consider, ESG factors in its investment process, but it does not consider adverse impacts of investment decisions on sustainability factors as specifically set out in Regulation 2019/2088 on sustainability-related disclosures in the financial services sector dated 27 November 2019 (“SFDR”). Blue Owl has chosen not to do so for the present time as it considers that its existing ESG policies and procedures are appropriate, proportional and tailored to the investment strategies of the funds that it manages. Blue Owl continues to closely monitor regulatory developments with respect to the SFDR and other applicable ESG-focused laws and regulations, including the implementation of related and secondary legislation and regulatory guidance, and will, where required or otherwise appropriate, make changes to its existing policies and procedures.