Responsible investment practices are systematically assessed when selecting asset managers for our Primary activity (for Secondary transactions, we endeavour to collect as much ESG data as possible but, due to time constraints, SWEN CP does not regularly conduct such assessments). This analysis also includes an ESG background checking to identify any incident affecting the asset managers, the underlying portfolio assets invested by the target fund and their key executives. Moreover, a specific questionnaire is sent out to each asset manager to assess their performances in the areas of CSR and responsible investing. An in-house ESG analysis is subsequently performed by each SWEN CP's investment director and written down in investment memorandums. SWEN CP strives to primarily invest in funds managed by investment managers concerned with responsible investment considerations and which applies to themselves relevant CSR policies.
The appointment of investment manager is conditioned to specific ESG criteria, including the respect of our responsible investment charter and policy, our Climate Strategy as well as ESG reporting and disclosure requirements. They are specified in the side letter agreements.
Our monitoring process is built around a regular communication with our general partners as well as more formalised tools. In particular, the assessment of the practices and performances of SWEN CP's fund managers is conducted annually through the completion of an ESG questionnaire. Once collected the data are used to establish an ESG scorecard of the general partners managing the funds SWEN CP invests in.