ESG issues are taken into account at deal entry and ESG due diligence is conducted on all new deals, both to avoid risks and as a selection criteria. Anticipating and understanding ESG dynamics is an important part of value‐creation and post-closing development of portfolio companies.
Due to our sector focus, a particular emphasis is put ith a special focus on social criteria impacting positively or negatively the companies' human capital (e.g. training, strike days, absence rate, work accidents, corporate responsibility, employee satisfaction, ...).
The 56-criteria grid that we use for our ESG monitoring is used during that phase as a checklist to identify specific issues to be investigated on by further due diligence.
ESG is integrated, where applicable, is the wider process where each investment is the subject of reference checking and due diligence of management and of commercial, accounting, tax, legal, social and environmental issues relating to the target company.
Furthermore, ESG is integrated, where applicable in the 100-day integration post investment plan.