This report shows public data only. Is this your organisation? If so, login here to view your full report.

CDC Group plc

PRI reporting framework 2019

Export Public Responses
Pdf-img

You are in Direct - Inclusive Finance » PIIF Principle 4: Responsible investment

PIIF Principle 4: Responsible investment

IFD 18. Tools for social performance reporting

Possible action:

Negotiate terms and conditions that are transparent, fair and reasonable, including fair break-up clauses.

18.1. Indicate if you use the following tools for social performance reporting:

Externally developed tools

During due diligence.

For monitoring and reporting purposes.

Describe the approaches used and frequency of use.

CDC's development impact and E&S due diligence approach encompasses tools such as the Universal Standards for Social Performance Management with a wider lens. The responsible investment teams conduct DD against the reference framework outlined in CDC's Code of Responsible Investing. For inclusive finance, this would also include an assessment against the CDC's internal Customer Protection Tool, which is aligned with the SMART Campaign CPPs (see below).


 

In-house tools based on externally developed tools

During due diligence.

For monitoring and reporting purposes.

Describe the approaches used and frequency of use.

In 2018, CDC led on the development of a Customer Protection tool to provide guidance on CDC expectations in terms of client protection. The guidance is for internal use as well as investees, GPs and sponsors to help integrate effective client protection into the services they offer. The tool focuses on four key principles: safeguarding, fair treatment, enabling organisation and culture; and sustainability and innovation. The tool is aligned to the SMART Campaign CPPs.

Tools developed solely in-house

During due diligence.

For monitoring and reporting purposes.

Describe the approaches used and frequency of use.

18.2. Additional information. [Optional]

In 2018, in advance of finalising its Customer Protection Tool, CDC published its approach to assessing risk to customers in financial services through a Briefing Note: https://assets.cdcgroup.com/wp-content/uploads/2018/12/05151151/Principles-for-assessing-risk-to-customers-in-financial-services.pdf

This briefing note is designed to enable impact investors, fund managers and financial service providers understand customer risk assessment and mitigation and sets the framework for CDC's Customer Protection Tool, which we use for our potential investments and which we encourage our investees to use as well.

 


IFD 19. Retail institutions have independent financial/social rating and/or social audit

19.1. Indicate if you require the retail institutions in which you invest to have an independent financial rating.

19.2. Indicate if you require the retail institutions in which you invest to have an independent social rating.

19.3. Indicate if you require the retail institutions in which you invest to have an independent social audit.

19.4. Additional information. [Optional]

CDC tends to rely on internal assessments rather than external ratings reports


IFD 20. Due diligence on and monitoring and reporting of corporate governance among investees

Possible action:

Assist in developing appropriate references for corporate governance issues.

20.1. In relation to your due diligence on and monitoring and reporting of corporate governance among investees, indicate if you assess:

Compensation of the Board of Directors and Executive Directors (i.e. its transparency, the use of benchmarking)

Pre-investment

Post-investment

Describe what you look at and, if post-investment, the frequency of assessment. [Optional]

    

Composition of the Board (i.e. breadth and depth of experience, effective client representation, diversity)

Pre-investment

Post-investment

Describe what you look at and, if post-investment, the frequency of assessment. [Optional]

    

Whether the Board receives social performance management-related information from the management team that is analysed and contributes to Board decision making.

Pre-investment

Post-investment

Describe what you look at and, if post-investment, the frequency of assessment. [Optional]

CDC expects development indicators, including social performance management, to be part of management reporting and if not, would add these to our reporting requirements. In some circumstances, CDC agrees with the investee to create an ESG Committees to track and monitor this information and raise issues to the Board where necessary.

20.2. Additional information. [Optional]


IFD 21. Training or assistance for investees on corporate governance

Possible action:

Assist in developing appropriate references for corporate governance issues.

21.1. Indicate if you provide training or assistance for your investees on corporate governance.

21.2. Additional information.

CDC's BI team considers governance, including an assessment of anti-bribery systems and controls, during all pre-investment due diligence and BI action plans. Where a company has needed additional support, trainings have been provided through workshops or expert assistance.


IFD 22. Percentage of investees where board seats are held (Private)


IFD 23. Procedure to integrate environmental issues in investment decision processes

Possible action:

Assist in developing appropriate references for environmental issues.

23.1. Indicate if you have a procedure to integrate the consideration of environmental issues in your investment decision processes.

23.2. Describe how your procedure to integrate the consideration of environmental issues in your investment decisions processes affect decisions pre-investment. [Optional]

All business that receive CDC capital must adhere to its Code of Responsible Investing, which stipulates CDC's ESG requirements. Pre-investment, due diligence is conducted on every potential investment to identify gaps in alignment with our Code. A time-bound E&S Action Plan is then developed and agreed with senior management to help the company meet CDC's ESG standards, which include environmental issues. Any high-risk issues are raised to the CDC Investment Committee and we may require the company to resolve certain high-risk non-compliances in advance of or as a direct condition of our investment. 

23.3. Describe how your procedure to integrate the consideration of environmental issues in your investment decisions processes affect decisions post- investment. [Optional]

Post-investment, the investee must comply with the E&S Action Plan, which will include any environmental risks identified as well as opportunities to add value through, for example, improving energy efficiency.

23.4. Indicate if you request your investees to comply with an environmental exclusion list.

23.5. Additional information. [Optional]

CDC's Code of Responsible Investing includes an Exclusion List that is legally binding to all investees.


IFD 24. Anti-corruption and whistle-blowing policies (Private)


Top