The same responsible investment policy applies for each asset class. SWEN CP has not yet developed a specific RI approach for its direct co-investment activity. It is noteworthy that SWEN CP always acquires minority stakes in each invested company. De facto, the implementation of advanced RI initiatives requires approval of the controlling shareholder.
Due diligence process
Before committing to invest in any company, the investment team, with the help of the ESG staff, performs an identification of ESG issues and identifies the systems implemented to manage them. To do so, all relevant documentation available are analysed and, as far as possible, discussed with the ceding asset manager and the management of the target company. Moreover, an ESG background checking is also carried out to identify any incident related to the underlying assets or its managers.
A constant monitoring of the ESG issues of the portfolio companies is performed. We annually ask them (through the controlling shareholder) to report their ESG policies and performances through a dedicated questionnaire. Direct co-investments and major holdings benefit from an ongoing monitoring of ESG incidents.
ESG practices of co-investments are shown in our annual ESG reporting communicated to SWEN CP’s clients.