Ardian's Responsible Investment policy during theownership phase For Ardian, monitoring the ESG practices of portfolio companies and funds is key to the successful integration of extra-financial factors in the investment process and is also instrumental for supporting the progress of companies CSR performance.
For direct investments in Infrastructure (majority shareholder or significant minority) throughout the holding period, the investment team maintains a constant dialogue with the portfolio company's management teams and actively monitors the evolution of their ESG practices, directly and with the support of external consultants who regularly carry out ESG reviews. The results of these ESG reviews serve as a basis for the establishment of recommendations and goals with concrete action plans to help portfolio companies to improve their ESG performance. Since 2009, Ardian has carried out more than 89 ESG reviews and continues to expand its monitoring scope each year. Furthermore, the investment team often has a seat on the Supervisory Board of portfolio companies which is powerful lever to promote the integration of extra-financial issues and to disseminate best practices. Moreover, to structure the collection and analysis of extra-financial indicators during the holding period, Ardian has developed an ESG Framework, based on industry recommendations and active dialogue with investors.
When Ardian is a minority shareholder: ESG monitoring takes place via Supervisory Boards when Ardian has a seat, or via interactions with the lead sponsor and/or portfolio companies when possible. An ESG Framework with indicators was established in order to help Ardian investment teams with the monitoring process during the holding period.