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Ardian

PRI reporting framework 2017

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

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

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.4. Indicate what norms you have used to develop your investment policy that covers your responsible investment approach.

other (1) description

          UNPRI
        

other (2) description

          Invest Europe
        

other (3) description

          AFIC
        

01.6. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

Founding principles and values

At the heart of Ardian’s culture lies a commitment to responsibly create enduring value. Our role as a long-term shareholder is to foster growth that is both sustainable and shared by all stakeholders. This means involving employees during all stages of the investment process both within Ardian and in portfolio companies as well as underlying funds. This concept of sharing is key for Dominique Senequier CEO of Ardian, and it is under her leadership in 2008 that Ardian launched a pioneering initiative in the Private Equity industry: Profit Sharing. This initiative has led Ardian’s investment teams to share a portion of capital gains at exit with all employees of the portfolio companies, whenever possible, and has proved to be a great success.

FORMAL COMMITMENT TO UNPRI                                                                                  

Following this initiative, Ardian decided to formalize an extensive approach to Corporate Social Responsibility (CSR) by developing an internal CSR Charter and signing the UN Principles for Responsible Investment (PRI) in 2009, and was one of the first signatories from Private Equity.

These Principles urge investors to integrate environmental, social and governance (ESG) issues, into their decision-making and recognize the positive effects these issues have on investment performance. To date, 1,500 organizations have signed the Principles. Together, they manage 60 trillion US dollars, which represents more than half of all globally managed assets.

ACTIVE MEMBER OF A RESPONSIBLE ECONOMY

Ardian is an active member of the PRI community and regularly participates in initiatives to develop and promote key guidance for ESG integration within the private equity sector. In addition to the PRI, Ardian adheres to the ethical principles and rules of other organizations of which it is a member: Invest Europe, AFIC, AFG, and ILPA. In 2015, Ardian was one of the five founding members to launch the Initiative Carbone 2020, which ambitions to measure and to reduce the carbon footprint of portfolio companies by 2020.

This active membership implies a wider commitment of responsibility and has pushed Ardian to develop ever increasing standards of reporting not only to our clients but also to the community in general. Ardian believes that transparency is the foundation of long term partnerships and is committed to complying with the highest standards of reporting whether it be through investor management reports, PRI annual transparency reports providing information at Ardian level, fund level and portfolio company level, when applicable.

The wide variety of activities at Ardian necessitates a structured approach based on internationally recognized guidelines as provided by the PRI, active collaboration with stakeholders within the industry but also a specific organization model within Ardian.

CSR ORGANIZATION WITHIN ARDIAN

Driven by a deep and shared conviction within the whole firm and direct involvement of the top management to lead the agenda, CSR organization within Ardian relies on a tailored model to fit our specific business philosophy, dedicated resources and time.

The organization of ESG at Ardian mobilizes resources from top management coupled with commitment and dedication of internal and external resources.

The CSR Committee is composed of top management representatives from the investment teams but also support functions, they meet quarterly and provide key inputs for the global CSR and ESG strategy at Ardian.

The CSR Officer is ultimately responsible for developing and implementing the strategy and plays a central role coordinating internal and external resources with the help of the CSR team. In recent years Ardian has sought to empower and provide more concrete guidance to investment teams though dedicated training conducted by ESG experts.

AMBITION, PRAGMATISM, RECOGNITION

Since 2009, Ardian has sought to extend ESG integration to the whole range of investment activities but also to adopt a tailored, materiality based approach, taking into account particularities of each activity. For example, for direct funds, ESG reviews for portfolio companies is carried out annually by external consultants, for funds of funds activities, Ardian has established an annual ESG monitoring survey for GPs.

In practice, Ardian ambitions to keep up with the highest ESG standards in its investment practices as we are convinced it will improve the company’s performance in the long run: both reducing risks and improving management practices of portfolio companies and funds, as well as making Ardian a more responsible shareholder and employer.


SG 02. Publicly available RI policy or guidance documents

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

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

URL/Attachment

URL/Attachment

URL/Attachment

URL/Attachment

URL/Attachment

02.4. Additional information [Optional].

In addition to its publicly available documents, Ardian has elaborated several RI-related guidance documents that are not publicly available, but accessible to employees via the dedicated ESG portal on the intranet.

Ardian's Charter for Profit Sharing with Portfolio Companies

This internal document specifically targets investment professionals. It refers to Ardian's commitment to sharing its profit with employees of its portfolio companies at the time of the exit. On its majority buyout deals, Ardian aims at redistributing an average of two months' salary to each company's employees out of the capital gain achieved. The guidelines contained in this Charter are technical, therefore it has only been circulated internally. Ardian's general approach and specific commitment to profit sharing profit are however outlined on its website, which is publicly available. 

Ardian Code of Ethics and Compliance Manuals

These internal documents specifically target Ardian's employees. They are built upon the following principles: priority of investors' interests, integrity, confidentiality, loyalty, transparency, and security.

Ardian's "Introduction to Corporate & Investment Responsibility"

This introductory presentation of ESG at Ardian is a training module targeting new employees. It is presented during  integration seminar sessions. Regularly updated, it overviews key elements of Ardian's Corporate& Investment Rsponsibility approach and achievements


SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

Ardian provides investors with a broad range of expertise. Each expertise offers specific advantages with a unique risk-reward profile and investment criteria and guidelines specified in its by-laws, thus mitigating any conflict of interest in terms of deal allocation: all investments opportunities are attributed to specific investment vehicles according to those criteria.

There is a rigorous process within Ardian to identify, manage and mitigate any potential conflict of interests. Ardian's Compliance Department is actively involved in the policy for managing potential conflicts of interest.

03.3. Additional information. [Optional]


SG 04. Identifying incidents occurring within portfolios (Private)


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