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Ardian

PRI reporting framework 2017

You are in Strategy and Governance » Implementation not in other modules

Implementation not in other modules

SG 12. ESG issues in strategic asset allocation

New selection options have been added to this indicator. Please review your prefilled responses carefully.

12.1. Indicate if your organisation executes scenario analysis and/or modelling in which the risk profile of future ESG trends at portfolio level is calculated.

12.2. Indicate if your organisation considers ESG issues in strategic asset allocation and/or allocation of assets between sectors or geographic markets.

12.3. Additional information. [OPTIONAL]

ESG considerations, such as the robustness of countries' regulatory frameworks, are integrated in funds' geographic allocation strategies.

Ardian avoids investing in countries exhibiting weak guarantees on anti money laundering related issues.

When developing any new business opportunity, Ardian integrates long term trends considerations, such as demographic change and climate change.


SG 13. Long term investment risks and opportunity

13.1. Some investment risks and opportunities arise as a result of long term trends. Indicate which of the following you act on.

13.2. Indicate which of the following activities you have undertaken to respond to climate change risk and opportunity

13.3. Indicate which of the following tools you use to manage emissions risks and opportunities

13.4. If you selected disclosure on emissions risks, list any specific climate related disclosure tools or frameworks that you used.

Carbon footprints of certain portfolio companies can be communicated to investors via semi-annual or annual management reports of the funds.

13.5. Additional information [Optional]

Ardian is a founding Signatory of the “INITIATIVE CARBONE 2020” (“IC20”), a collective initiative launched in 2015 by private equity players to reduce the greenhouse gas emissions of portfolio companies and secure sustainable performance.

Signatories voluntary pledge to :

Measure the direct and indirect carbon footprint of majority owned companies;
Include the climate issue in their investment process as of 2016, so as to gradually extend a climate strategy to all the companies they control;
Reduce carbon emission for companies where CO2 is a material issue.

The methodological approach for the ‘Initiative Carbone 2020’ is three-pronged:

1/  During the investment phase: assessment of the carbon issue in the company’s future development

2/ During the holding phase:

Climate -change awareness-raising for the management teams;
Materiality analysis of the company’s carbon impacts;
Based on the challenges, a thorough calculation followed by the definition of an action plan to reduce emissions and adapt to climate change.

3/ During the exit phase: capitalize on the most significant improvements made major progress achieved

Ardian, along with the other Signatories, hopes to share both the methodology and the commitments with all sector players that wish to participate in the fight against global warming.

The initiative received the approval and support of the PRI.

More information can be found at the following address:

https://www.ardian.com/sites/default/files/docs/Manifeste%20ic20%20UK.PDF

 


SG 14. Allocation of assets to environmental and social themed areas (Private)


SG 15. ESG issues for internally managed assets not reported in framework

15.1. Describe how you address ESG issues for internally managed assets for which a specific PRI asset class module has yet to be developed or for which you are not required to report because your assets are below the minimum threshold.

Asset Class

Describe what processes are in place and the outputs or outcomes achieved

Property

For any direct investment opportunity, preliminary screening ensures that the investment team avoids investing in sectors which are explicitly listed as being banned by Ardian’s CSR Charter. During due diligence, the investment team conducts an ESG analysis with a focus on environment and energetic efficiency. Ardian’s direct Property activity was launched in 2016 and a tailored ESG policy is being finalized.

Other (1) [as defined in Organisational Overview module]

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.

 

Investment decision

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.

 

Holding period

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.

15.2. Additional information [Optional].


SG 16. ESG issues for externally managed assets not reported in framework

16.1. Describe how you address ESG issues for externally managed assets for which a specific PRI asset class module has yet to be developed or for which you are not required to report because your assets are below the minimum threshold.

Asset Class

Describe what processes are in place and the outputs or outcomes achieved

Infrastructure

Ardian’s process for ESG integration in externally managed Infrastructure is the same as for externally managed Private Equity. 

16.2. Additional information.


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