During due diligence, ESG performance of prospective GPs is assessed through an ESG questionnaire, and through meetings with companies’ CSR officers.
ESG analysis is formalized in the investment memoranda, which includes a scoring matrix, that factors all the investment parameters. ESG related criteria account for 10% of the final score.
“Through a mandatory side letter, Ardian request GPs of primary funds to conform to its CSR Charter which bans firearms and tobacco sectors from investment, two sectors it considers unethical”.
In this mandatory side letter, Ardian also require all of its portfolio GPs to contribute to its annual ESG monitoring survey, which allows teams to regularly assess their ESG policy and initiatives, both at the corporate level and throughout the investment process.