CDC performs due diligence on the ESG capacity and management systems of those who manage its capital externally to ensure that ESG factors are incorporated into the managers' investment decision making in a way that is comparable to CDC itself. Correspondingly, CDC would expect its external managers to approach listed equity in a manner broadly comparable to CDC's own approach.
CDC would therefore expect diligence to be performed on listed equities by the fund manager to verify adherence to the ESG requirements of CDC's Code of Responsible Investing. Where gaps are identified, CDC would expect the manager to put in place an action plan to bring the investment into compliance over a reasonable period.
CDC would also encourage the manager to add value on ESG grounds where it identifies opportunities that might result in the opening of new markets for the business, cost efficiencies, improved community relations, greener production and better supply chain management, amongst others.