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CDC Group plc

PRI reporting framework 2019

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Outputs and outcomes

FI 17. Financial/ESG performance

17.1. Indicate whether your organisation measures how your incorporation of ESG analysis in fixed income has affected investment outcomes and/or performance.

Select all that apply
Corporate (financial)
We measure whether incorporating ESG impacts portfolio risk.
We measure whether incorporating ESG impacts portfolio returns.
We measure the ESG performance/profile of portfolios (relative to the benchmark).
None of the above

17.2. Describe how your organisation measures how your incorporation of ESG analysis in fixed income has affected investment outcomes and/or ESG performance. [OPTIONAL]

During due diligence, CDC always screens for gaps in compliance with ESG standards and develops an action plan with the company to close these gaps and add value.

While CDC does not systematically measure whether incorporating ESG impacts portfolio returns, this is done on an ad hoc basis.

17.3. Additional information.[OPTIONAL]


FI 18. Examples - ESG incorporation or engagement

18.1. Provide examples of how your incorporation of ESG analysis and/or your engagement of issuers has affected your fixed income investment outcomes during the reporting year.

ESG issue and explanation

During due diligence, CDC always assesses alignment with local and international ESG standards. Where applicable, CDC develops an action plan with the company to close identified gaps and, where possible, implement value-adding opportunities. For example, at one company CDC noted challenges related to labour and working conditions, many of which were linked to endemic issues in the country's manufacturing sector. CDC secured commitment from the company to improve ESG performance and provided support to build capacity and implement a robust E&S management system in partnership with company management. Significant improvements have been observed over the past months regarding working hours, health and safety and contractor management. The company believes this, together with other initiatives, has led to improved efficiency and productivity and a better working environment for employees and contractors; and in the future, will enable them to access more finance.

Impact on investment decision or performance

Significant improvements were secured in working hours, health and safety, and gender equality. The company believes this has led to improved efficiency, better working environment for employees, higher productivity; and in the future, will enable them to access more finance.

ESG issue and explanation

A renewable energy project faced challenges engaging its workers on wearing personal protection equipment (PPE). Including this as a requirement in the E&S Action Plan was insufficient to effect a company-wide change.

Impact on investment decision or performance

CDC appointed an on-site advisory consultant to engage regularly with the workers, create dialogue and understanding around the elements of the E&S Action Plan, and identify training needs and resource gaps.

18.2. Additional information.


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