Policy and commitment to responsible investment
Many of Ardian’s PPMs refer to the necessity for teams to actively consider ESG matters throughout the investment process, and ensures that economic returns are accompanied by a responsible investment and long-term decision-making approach.
Approach to ESG issues in pre-investment processes
For instance, the PPM of one of the funds clearly states that during preliminary screening the Project Team ensures that the prospect company should not operate in sectors which are deemed to be unethical, and that due diligence is discontinued in the case of companies operating in banned sectors.
Also, during due diligence, the Project Team includes ESG criteria in its due diligence efforts, and may decide to appoint external consultants to carry out additional environmental and/or social audits where necessary.
The investment memoranda contains an ESG performance rating and identifies potential ESG risks that directly affect the investment decision.
Approach to ESG issues in post-investment process
For instance, the PPM of one of the funds states that throughout the holding period, the Investment Team monitors companies' ESG criteria as part of normal supervision of corporate holdings, and that Ardian regularly mandates external consultants to perform an ESG review on all portfolio companies.
The analyses and recommendations produced by the review serve as a basis for the deployment of targeted ESG initiatives.