Ardian is committed to integrating ESG in all of its investments activities, while taking into account their specificities in order to ensure an appropriate and effective approach.
With the support of the CSR team, each investment team is ultimately responsible for implementing this policy during the different phases of the investment process.
Pre-due diligence phase:
Preliminary screening ensures that the investment team avoids investing in sectors which are explicitly listed as being banned by Ardian's CSR Charter.
The investment team systematically carries out an ESG analysis while taking into account the fund's (or mandate's) strategy as well as the specificities of each opportunity, with the support of the CSR team and ESG consultants when necessary.
For direct investments in Private Equity (majority shareholder or significant minority): due diligence is based on the establishment of a dialogue with the management team and onsite visits of the company, in order to identify and assess key ESG issues and understand how they are taken into account by the management team. Depending on the industry sector and initial discussions with management, the investment team may decide to hire an external consultant to carry out environmental, social or ESG audits.
When Ardian is a minority shareholder: The investment team carries out the ESG analysis in two phases. First of all, the investment team evaluates the lead sponsor according to ESG criteria. Secondly, the investment team assesses the business itself based on: 1) the buyers and vendors due diligence packages, 2) dialogue with the management of the company and / or the lead sponsor, depending on the configuration of the transaction
A summary of the ESG analysis is then included in every investment memorandum submitted to the Investment Committee who is ultimately responsible for the investment recommendation. Depending on whether material ESG risks are identified in the due diligence phase, a corrective action plan can be included in a post-acquisition plan.