The materiality of ESG factors is defined through reference to our ESG Policy and in general through the respect of the United Nations Conventions and the United Nations Global Compact, the domestic legislations and best practices. The materiality of the ESG factors is sector specific according to the environmental footprint of the production process as well as the main social and governance challenges of each specific sector. An ESG Advisor supports us in defining and evaluating the materiality of ESG factors for each company invested in.
In the first example, the construction of a clean tech plant was strategical in the investment case and the construction of the biological cleaner was a pre-requisite of the investment.
Also in the second example, the target of improving the production standards of the subsidiaries in emerging markets was strategical in the investment case, but also a requirement to remain competitive in the market and satisfy the suppier policy of a major client.