Idinvest Partners has established a dedicated Responsible Private Equity (RPE) policy for all its activities.
Since 2002, Idinvest Partners has been engaged in an initial consideration of Socially Responsible Private Equity: we strongly believe in the need to incorporate extra-financial factors (Environmental, Social and Governance, or ESG) in our business lines while at the same time maintaining a high level of performance.
In 2007, Idinvest Partners began to include these concerns in its operations, with a view to increasing ESG awareness.
In 2012, Idinvest Partners has entered a new phase of ESG implementation and consolidation when it formalized its Responsible Private Equity (RPE) Policy, which is available on its website at http://www.idinvest.com/en/pdf/Idinvest_Responsible_PE%20Policy_Public_version_website.pdf.
In 2013, Idinvest Partners set up its processes for incorporating ESG policy in its direct investment portfolios (Growth Capital, co-invesment and Private Debt) and, for Fund investments (primaries and secondaries) as of 2014.
In 2015, Idinvest Partners started working on the definition of a 5-year roadmap for its ESG policy. Particular focus was put on dialogue with portfolio companies on ESG issues, carbon footprint assessment of portfolios, as well as Idinvest’s own CSR practices.
In 2016, all our investment processes were reviewed to make sure relevant level of information was taken into account upon investment and during the investment lifecycle. The ESG profiles used during selection processes were updated as well as follow-up reporting questionnaires. A new questionnaire was created for General Partners follow-up, 21 GPs were interrogated in 2016 with a 100% answer rate.
In practical term, we seek to work closely with our investee companies and funds, and wish to strengthen this partnership by maintaining an active dialog with them on the importance of implementing these new extra-financial criteria in their operations. This is because we believe that extra-financial issues deserve particular attention from both a strategic and an operational perspective, since they may serve to create value and manage risks more effectively.
It should be noted that we have implemented our ESG policy to all our new investments. Regarding the portfolio of 450+ investments, we apply dedicated ESG processes to the following categories of investments:
portfolio investments that are or will be subject to the French Grenelle 2 regulatory requirements on CSR and carbon footprint reporting,
investments for which a client or an investment partner has requested an ESG approach and corresponding reports,
portfolio investments or potential investees with business activities that involve high reputational or ESG risk, and which have been identified as such in Idinvest Partners' Responsible Private Equity Policy.
In addition, our Responsible Private Equity policy is also applied according to a progressive operational approach: in a first step through the analysis of the ESG risk profile of each of our investments and, in a second step, with an adapted monitoring according to the level of ESG risk detected.
The key areas of our ESG analysis, dialogue and engagement process are the following:
Governance : Transparent and effective corporate governance ; Forward-looking management
Environmental : Using resources in a sustainable manner ; Reducing adverse impacts on the environment ; Contribute to the fight against climate change
Human resources : Employee attraction and retention ; Promotion of dialog between employees and management ; Job creation
Relations with external stakeholders : Partnership with customers and suppliers to promote the use of ESG criteria; Consideration of our impact on external stakeholders (individuals and communities, the natural environment)