According to Tikehau’s investment policy, any investment opportunity which is being evaluated must include an initial ESG assessment.
All investment analysts covering private equity investments receive regular training on internal ESG processes and procedures. Consistent with the Group’s thorough fundamental analysis, investment analysts perform a detailed review of each potential investment which includes a range of ESG factors. This is being formalized by way of implementing a proprietary ESG analysis grid. The questions within the analysis grid focus on:
- Governance risks with a specific focus for high risk countries and sectors including corruption & cyber-security risks; management quality; existing or latent controversies etc.
- Social risks and opportunities including health & safety risks; social risks in the supply chain; social impact on communities etc.
- Environmental risks and opportunities including regulatory risks; and company specific environmental and climate impact applying a bonus for product and services targeting the energy and ecological transition for the climate and the circular economy.