Integration of ESG for Private Debt activity
Pre-due diligence phase
Preliminary screening ensures that the company does not operate in sectors which are explicitly listed as being banned in Ardian's CSR Charter.
Due diligence is discontinued immediately in the case of companies operating in banned sectors.
Due diligence phase
The investment team proceeds to a dual ESG assessment:
ESG assessment of the lead sponsor, leveraging the ESG monitoring realized by the Funds of Funds team on their General Partners;
ESG assessment of the target company, on the basis of:
1. Vendors and buyers diligence packages.
2. Dialogue with the lead sponsors or companies' management, when possible, depending on the deal context, the size and level of the stake.
The investment memos always have a dedicated ESG section.
The investment memoranda are then submitted to the Investment Advisory Committee who is ultimately responsible for the investment decision.
During the holding period, the investment team monitors companies' ESG profile and initiatives, on a case-by-case basis :
Through Supervisory Boards when Ardian is a member;
Through active dialogue with the lead sponsors or companies' management when appropriate;
Through ESG performance indicators updated annually at year end.