For listed bonds, the ESG analysis mainly involves the integration ESG evaluations into investment recommendations. Meetings with company executives are also conducted where possible (e.g. during roadshows).
For private direct lending, Tikehau teams conduct a more in depth due diligence based on an extended questionnaire. If the investments materializes, the loan agreement will include an ESG clause setting out Tikehau Capital’s ESG commitments as well as engaging management of the target to adopt a progressive approach in carrying out their business combining economic interests and corporate responsibility. An ESG information request clause will also be included in the contractual documentation. Further, the ESG monitoring will be based on in-depth interaction with the executives of the company especially for sponsorless private debt.