A new ESG process was drafted in 2017 to strengthen the ESG approach in all the stages of the investment process. This ESG process was entirely integrated in the overall formalised investment process.
The objectives of this new process are the following:
1) Implementing the responsible investment policy of CDC IC by reinforcing the consideration of ESG criteria at all stages of the investment process;
2) Adopting the ESG incorporation approach as an effective management and value creation tool;
3) Being consistent with the CDC Group’s Responsible Investment strategy;
4) Applying the best market standards in this area and, at the very least, preserving the reputation of CDC IC and its parent company (CDC).
Regarding the implementation of the RI policy, the integration of ESG criteria is a natural component of the investment process (from acquisition to cession) and integrated into the investment procedure, which implies a regular awareness raising of teams on ESG issues. There is no internal ESG specialist within CDC IC and external service providers or the relevant CDC management frequently support CDC IC. Each member of the investment team is involved in ESG issues and follows ESG-related training sessions.
We also drafted a RI Charter (published early 2018) in order to share our convictions and ambitions, reassert our values, and improve continuously our ESG approach for all assets.
Our own four commitments formalised in our Charter are:
- Sharing our ESG convictions and implementing them in the daily management of our organization: a robust governance, a long-term management of our employees, and our contribution to the environment.
- Integrating ESG in all our investment activities and partnerships, mainly CDC IC ensures, at minimum:
• the respect of environmental and social standards recognised in French and European legislation, including when investing outside of the European Union,
• the fight against money laundering, financing of terrorism, embargo violations, corruption and influence peddling,
• the prevention of risks linked to investments in tax havens, the investment limited only to countries complying with international treaties signed by France and the refusal to invest in countries sanctioned for serious breaches of human rights.
- Promoting the progress of our portfolio companies on ESG issues
- Making an active contribution to the fight against climate change through our investment business and CDC IC follows the CDC Group’s climate strategy:
• reducing the carbon footprint of its investment portfolios to have a significant impact on the real economy,
• strengthening its commitments as a shareholder on climate and energy issues,
• utilising its financial resources to support low carbon projects,
• disengaging from coal.