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 attractive 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 responsible leadership throughout the industry. 
In 2023, Tailwater became a member of the ESG Data Convergence Initiative (EDCI) in its continued stewardship of transparency and sustainable 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 RESPONSIBLE INVESTMENT PLAYBOOK
Tailwater has developed robust infrastructure and reporting that allows us to be stewards of resilience and sustainability to our portfolio companies and investors and, ultimately, to drive both investment returns and stakeholder value in the communities in which we do business.
STEWARDSHIP AND PERFORMANCE
Responsible Investment Steering Committee
- Chaired by Roger Fox, our Head of Responsible Investment, and led by the firm’s Partners, with additional representation of portfolio, LP, regulatory, and community stakeholders
- Sets annual sustainability-related goals for our portfolio and our firm
- Reviews quarterly portfolio reposible investment performance
- Incorporates sustainability considerations in the Tailwater investment lifecycle
- Serves as onboarding guidance for our portfolio partners on our requirements, process, and best practices related to responsible investment
- Quarterly Board template tracking key resilience-related initiatives to drive responsibility and investment performance
- Quarterly template also includes a proprietary Responsible Investment Scorecard that classifies which core areas of responsible operatorship 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 responsible advancement
- Deep bench of engineering, emissions, and overall company management expertise provided through Tailwater Innovation Partners
STEWARDSHIP AND PERFORMANCE
Responsible Investment Steering Committee
- Chaired by Roger Fox, our Head of Responsible Investment, and led by the firm’s Partners, with additional representation of portfolio, LP, regulatory, and community stakeholders
- Sets annual sustainability-related goals for our portfolio and our firm
- Reviews quarterly portfolio reposible investment performance
- Incorporates sustainability considerations in the Tailwater investment lifecycle
- Serves as onboarding guidance for our portfolio partners on our requirements, process, and best practices related to responsible investment
- Quarterly Board template tracking key resilience-related initiatives to drive responsibility and investment performance
- Quarterly template also includes a proprietary Responsible Investment Scorecard that classifies which core areas of responsible operatorship 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 responsible advancement
- Deep bench of engineering, emissions, and overall company management expertise provided through Tailwater Innovation Partners
MATERIAL RESPONSIBLE INVESTMENT 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 responsibility with bottom-line investment returns.
TAILWATER’S CORE AREAS OF RESPONSIBLE INVESTMENT 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 sustainability 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
Responsibility at Tailwater is not merely a program, but also a philosophy. Since inception, our senior leadership has donated over $3.5 million and actively given over 5,000 hours of volunteer time to the Education, Development & Human Services, and Healthcare.
$3.5M
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.