TAILWATER TAKES A PROACTIVE, COMMITTED APPROACH TO ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (“ESG”) CONSIDERATIONS
DELIVERING SUSTAINABLE SOLUTIONS
“Tailwater has never been better positioned to help accelerate our collective progress towards a low-carbon future. We share a conviction that the energy economy is a space in which innovation can deliver outsized returns as well as a positive impact on our society.”
JASON DOWNIE AND EDWARD HERRING,
Co-Founders and Managing Partners
In 2022, Tailwater was proud to become a signatory to the United Nations-supported Principles for Responsible Investment (PRI), deepening our commitment to ESG leadership throughout the industry. 
In 2023, Tailwater became a member of the ESG Data Convergence Initiative (EDCI) in its continued stewardship of transparency and ESG performance benchmarking within the private equity sector. 
As a demonstration of our commitment to mitigating climate change and advancing the global energy transition, Tailwater supports the Task Force on Climate-related Financial Disclosures (TCFD).
A UNIQUE ESG PLAYBOOK
Tailwater has developed robust ESG infrastructure and reporting that allows us to be stewards of positive ESG performance to our portfolio companies and investors and, ultimately, to drive both investment returns and stakeholder value in the communities in which we do business.
ESG STEWARDSHIP AND PERFORMANCE
ESG Steering Committee
- Chaired by Roger Fox, our Head of ESG, and led by the firm’s Partners, with additional representation of portfolio, LP, regulatory, and community stakeholders
- Sets annual ESG-related goals for our portfolio and our firm
- Reviews quarterly portfolio ESG performance
- Incorporates ESG considerations in the Tailwater investment lifecycle
- Serves as onboarding guidance for our portfolio partners on our requirements, process, and best practices related to ESG
- Quarterly Board template tracking key ESG-related initiatives to drive responsibility and investment performance
- Quarterly template also includes a proprietary ESG Scorecard that classifies which core ESG areas of focus are most critical or in need of development specific to each portfolio
- Ongoing leadership for active Tailwater portfolio to seek stronger practices, identify risks, and highlight opportunities for ESG advancement
- Deep bench of engineering, emissions, and overall company management expertise provided through Tailwater Innovation Partners
ESG STEWARDSHIP AND PERFORMANCE
ESG Steering Committee
- Chaired by Roger Fox, our Head of ESG, and led by the firm’s Partners, with additional representation of portfolio, LP, regulatory, and community stakeholders
- Sets annual ESG-related goals for our portfolio and our firm
- Reviews quarterly portfolio ESG performance
- Incorporates ESG considerations in the Tailwater investment lifecycle
- Serves as onboarding guidance for our portfolio partners on our requirements, process, and best practices related to ESG
- Quarterly Board template tracking key ESG-related initiatives to drive responsibility and investment performance
- Quarterly template also includes a proprietary ESG Scorecard that classifies which core ESG areas of focus are most critical or in need of development specific to each portfolio
- Ongoing leadership for active Tailwater portfolio to seek stronger practices, identify risks, and highlight opportunities for ESG advancement
- Deep bench of engineering, emissions, and overall company management expertise provided through Tailwater Innovation Partners
MATERIAL ESG FACTORS
Tailwater aims to create companies with a positive environmental and social impact. However, we are largely focused on performance in areas most material to each company. This concept of materiality allows us to engage meaningfully with our portfolio to directly link ESG with bottom-line investment returns.
TAILWATER’S CORE AREAS OF ESG FOCUS
Emissions / CO2 Avoidance
Safety
Power Sources
Recruitment
Efficiency / Utilization
Demographics and Engagement
Leak Detection
Governance
Cybersecurity
TAILWATER AND THE SDGS
To help determine sustainability outcome objectives, we have taken guidance from the United Nations’ Sustainable Development Goals (“SDGs”). In our view, aligning financially material ESG issues with the SDGs increases the contribution our firm can make while creating enhanced portfolio value.
PRIMARY AREAS OF SDG FOCUS
6.3 Improve water quality by reducing pollution and increasing recycling and safe reuse
6.4 Increase water-use efficiency and ensure sustainable withdrawals and supply of freshwater
7.1 Ensure universal access to affordable, reliable and modern energy services
7.2 Increase substantially the share of renewable energy in the global power mix
9.1 Develop quality, reliable, sustainable and resilient infrastructure
9.4 Upgrade infrastructure and retrofit industries to make them sustainable
12.2 Achieve the sustainable management and efficient use of natural resources
12.4 Achieve the environmentally sound management of chemicals and all wastes
12.5 Substantially reduce waste generation through prevention, reduction, recycling and reuse
GIVING BACK TO OUR COMMUNITIES
ESG at Tailwater is not merely a program, but also a philosophy. Since inception, our senior leadership has donated over $2.5 million and actively given over 5,000 hours of volunteer time to the Education, Development, and Health of Our Community.
$2.5M
In Donations
5K
Hours of Volunteer Time
SAMPLE ORGANIZATIONS SUPPORTED
Tailwater is a partner that not only understands the positive environmental impact of the midstream business, but it invests behind it. Together, our work has made a difference – both for our investors and for our environment.