In March 2024, Coller Capital participated in a syndication through a credit-oriented GP to acquire a position in a leading provider of specialty minerals to the industrial segment across North America. In 2025, Coller’s ESG team visited the portfolio company’s operations to run due diligence.
The company’s products serve as critical inputs to a diverse range of end markets including coatings & polymers, building products, glass, water filtration, sports & recreation and solar glass.
The extraction and processing of Industrial minerals is an energy-intensive process and can impact water systems and local biodiversity. A broad range of environmental social and governance (ESG) risk factors and key focus areas included energy efficiency, decarbonisation, water management, biodiversity, and the reclamation of land.
From our due diligence, we viewed the company as committed and innovative in their approach to managing risk and tackling sustainability, and our post investment checks provided confirmation.
Pre-investment engagement comprised ESG and sustainability due diligence of the GP and company and after considering sector-specific operational risks applicable to the asset, the team found no evidence of systemic poor practice. The team similarly observed evidence of robust sustainability practices.
As an investment in an industry inherently associated with elevated ESG risk, Coller Capital proposed to verify the due diligence findings and engage with the company directly post investment – notably on operational ESG, impact on society and the environment, and to explore the potential positive financial impact associated with the company’s ESG activities.
The GP expressed an openness to engagement within the operations at the asset and the company was added to Coller Capital third party platforms to estimate and assess the company’s carbon emissions and net impact on the environment and society.
Post-investment engagement (during March 2025) involved Coller Capital’s ESG team visiting mineral sand mining and processing plants in the United States. The team met with both company management and the GP deal team, to follow up on the company’s approach to managing ESG risk factors and sustainability. From these visits we observed a clear commitment to sustainability as a driver for operational efficiency, employee satisfaction, cost reduction, and top-line growth.
Notable outcomes and initiatives observed at the business, included reduced safety, health, and security all-incident rates; community action plans implemented across all operational facilities; multi-million US$ investments in energy efficiency supporting a reduction in scope 1 and scope 2 carbon intensity year-over-year; over 12,000 community volunteer hours in a year; and achieving Wildlife Habitat Certification for bespoke biodiversity and conservation initiatives implemented across operational locations.
Careful consideration had also been given to the credentials of the product range from the perspective of sustainability both as a potential risk mitigant (e.g. reduced health impacts) and opportunity driver (e.g. end use such as in water treatment or solar panels).
Coller Capital’s commitment to responsibility was clear from very early on. The team exhibited a considered approach towards the analysis of material risk factors during their ESG due diligence process and undertook a highly collaborative review that included direct ESG engagement with the portfolio company post investment. The experience of Coller’s team when conducting onsite review of the portfolio company post investment was particularly helpful and we welcome their on-going support. Investors such as Coller Capital play an important role in the development of our own responsible investment practices.
The GP
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In this year’s ESG report, we highlight how our enhanced engagement...
Our strong overall impression from the visit and from time spent with management was that the company has a highly motivated team that has carefully considered and integrated sustainability within its business operations. It was pleasing to have our due diligence findings confirmed through time spent with the company’s management and operating teams.
Our observations were limited to good practice enhancements such as revisiting HSE (health, safety and environment) risk assessments for non routine and site-specific tasks, and possible collaboration to support on-going work related to product life-cycle assessment and end markets as well as further refining biodiversity assessments.
Following the visit, Coller shared resources and contacts and shared a third-party Cyber Security assessment on the asset (completed as part of our standard approach to good governance).