Somerset positions itself as an “ESG opportunity seeker” and follows an ESG thematic investing thesis throughout the investment cycle from investment selection, portfolio management, shareholder advocacy to exit management.
Somerset has a robust reporting framework including ESG reporting under its Environmental and social management policy (ESMS) which is based on IFC and other DFI ESG guidelines.
Somerset firmly believes that Environmental, Social and Governance (ESG) parameters are integral to its role as an investor. Integrating ESG factors in investment decisions is vital in determining risks and opportunities, and ensuring long-term, sustainable value creation for the fund, for its portfolio companies, their management and employees, the environment, and society as a whole. Fund’s approach towards ESG is embedded in all aspects of its investments process from initial investment selection, to subsequent value creation and exits, ensuring a sustainable long-term ownership structure into the future. Fund’s approach towards ESG investing flows from its Environmental and social (E&S) policy which is documented as its Environmental and Social Management system (ESMS).
Read our ESG Policy here:
ESG is tightly integrated into our Investment cycle.
The current state of healthcare in India is characterized by India contributing to ~18% of the world’s population and 21% of global diseases. India’s current market is highly underpenetrated in terms of per capital healthcare expenditure spend, bed densities and physician & nursing staff densities. India continues to be underserved in healthcare and offers significant opportunities across the entire spectrum in healthcare delivery, diagnostics, supply chain, nutrition and wellness, tertiary care in lower tier towns and emerging opportunities in telemedicine and digital health.
With accelerated urbanization, higher disposable income, enhanced penetration of healthcare insurance, increasing trend of medical tourism, a shift in disease patterns from communicable diseases to lifestyle-related diseases along with favorable investment environment, India is expected to witness a healthcare expansion boom in the times to come.
Somerset as an ESG Opportunity Seeker aims to capture this opportunity and invest in social healthcare infrastructure in India, helping companies in job creation and more importantly in making quality healthcare more accessible and affordable to the average Indian through operational and technological advancements.
As a healthcare focused fund operating in a highly underserved region, Somerset aims to make a life-changing impact to its portfolio network, their local communities, and the nation en masse. Somerset aims to achieve sustainable and long-term impact by ultimately improving the lives of all its stakeholders.
The fund also believes that technology will play a big role in healthcare in the medium to long run and new Artificial Intelligence/Machine Learning/Virtual Reality based products and services will start making an impact in the market, as the model in healthcare is shifting towards a more collaborative solutions model. The fund has been working with its technology partners to create solutions which allow for better availability, accessibility and affordability of healthcare.