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Ambienta SGR SpA

PRI reporting framework 2019

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.3. Indicate if the investment policy covers any of the following

01.4. Describe your organisation’s investment principles and overall investment strategy, interpretation of fiduciary (or equivalent) duties,and how they consider ESG factors and real economy impact.

Ambienta invests in Small and Medium Enterprise with a current or planned business focus on products and/or services that improve the resource efficiency and/or the pollution control, regardless of the specific sector in which they operate. “Resource efficiency” refers to the better usage of the main natural resources (such as oil, gas, water, metals, minerals, soil, etc.) or of the resources derived from those main natural resources (such as electricity, heat, industrial products and food) and to the shift to renewable resources. “Pollution control” refers to the reduction of the negative impact of human activity on the quality of the air, water, soil, ecosystems or climate generally. 

As a mid-market private equity investor specialising in the key environmental themes of resource efficiency and pollution control, active ownership and responsible investment is intrinsic to everything we do to deliver our primary objective of value creation.
Ambienta recognises the relationship between the long term performance of investments and environment, social and governance (ESG) issues. In this context we have developed a full ESG in Action programme that prescribes all actions and responsibilities to integrate ESG factors at GP level and Portfolio companies level

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

Ambienta pursues this goal as a mid-market private equity investor specialising in the key environmental themes of resource efficiency and pollution control and only investing in companies which contribute to United Nation Sustainable Development Goals for the pursuit of its investment strategy. Active ownership and responsible investment are intrinsic to everything we do to deliver our primary objective of value creation.  

Ambienta recognises the relationship between the long term performance of investments and environment, social and governance (ESG) issues. In the context of the types of companies that Ambienta invests in, ESG issues can include, but are not limited to

  • business integrity
  • corporate governance and management
  • efficient use of resources
  • air, land, water and more in general pollution
  • occupational, user and community health and safety
  • employment terms and labour standards
  • human capital development

Ambienta’s approach to responsible investment therefore includes:

  • investing in line with the United Nations Sustainable Development Goals;
  • monitoring and reporting to stakeholders individual portfolio company contribution to United Nations Sustainable Development Goals;
  • recognising the centrality of, and following, the UNPRI Six Principles for Responsible Investments;
  • incorporating ESG issues into our investment analysis and decision-making processes, drawing on independent expertise as and when necessary;
  • leading our portfolio companies as active owners to ensure that ESG policies and considerations, in a form inspired by The Ten Principles of the UN Global Compact, are integrated appropriately within each of their operations;
  • monitoring the ESG performance of our portfolio companies and integrating ESG information into our investor relations and LP reports on an annual basis;
  • assessing and managing the carbon footprint of our portfolio companies;
  • supporting and collaborating with Fondazione Ambienta, for the wide promotion of environmental values to the youngest generations
  • promoting internal accountability for the implementation of the above.

Ambienta is a signatory to the UN supported Principles for Responsible Investment (PRI).

Ambienta is a member of Invest Europe where it aims at having an active role and harmonising its operations with best in class for its size.

01.6. Additional information [Optional].

          
        
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SG 01 CC. Climate risk

01.6 CC. Indicate the climate-related risks and opportunities that have been identified and factored into the investment strategies and products, within the organisation's investment time horizon.

Ever since its foundation in 2007, Ambienta aimed to invest in companies which improve resource efficiency and/or pollution control. The idea behind this thesis was that companies which produced a better effect on the environment embraced a long term sustainability trend. This trend can be directly related to the need for our society to improve resource efficiency and reduce pollution. It follows naturally the mitigation of climate-related risks. After 12 years of investing in this space, Ambienta can finally demonstrate how this thesis also produced superior returns for our investors.

Within this context, climate-related risks and opportunities have always been deeply entrenched into Ambienta's investment philosophy.

01.7 CC. Indicate whether the organisation has assessed the likelihood and impact of these climate risks?

01.8 CC. Indicate the associated timescales linked to these risks and opportunities.

The timescale linked to climate-related risks is related to the typical investment holding period of private equity. It is typically between 3 to 5 years.

01.9 CC. Indicate whether the organisation publicly supports the TCFD?

01.10 CC. Indicate whether there is an organisation-wide strategy in place to identify and manage material climate-related risks and opportunities.

Describe

Starting from 2019, after raising our third fund Ambienta III (€635 million), Ambienta decided to assess and manage the carbon footprint of its portfolio companies. This process has been implemented in addition to Ambienta's proprietary Environmental Impact Analysis of portfolio companies, which has been operational since 2016.

The idea behind the implementation of this new process is to first assess how our companies are positioned with relations to climate change, then to implement strategic initiatives to improve their resilience, reduce their environmental impact, and better position them against climate-related risks.

1.12 CC. Indicate the documents and/or communications the organisation uses to publish TCFD disclosures.

specify

          Annual publication of our ESG & Environmental Impact Report
        

SG 02. Publicly available RI policy or guidance documents

New selection options have been added to this indicator. Please review your prefilled responses carefully.

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

02.3. Additional information [Optional].


SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

Our policy manages possible conflict of interest arising from 9 different types of situation. 8 refers to investments or divestment situations where: 1) counterparts are directly or indirectly managed by Related Parties and/or Holding Companies and/or Portfolio Companies 2) Related Parties and/or Holding Companies and/or Portfolio Companies holds 10% or more voting rights 3) counterparts have significant business relations with Related Parties and/or Holding Companies and/or Portfolio Companies 4) counterparts have debt towards Related Parties and/or Holding Companies and/or Portfolio Companies 5) investment are made alongside Related Parties and/or Holding Companies and/or Portfolio Companies 6) alongside companies controlled by  Related Parties and/or Holding Companies and/or Portfolio Companies 7) target companies have signed contracts above 1mln€ with ourselves or Related Parties and/or Holding Companies and/or Portfolio Companies 8) our regulatory bodies recognise a conflict of interest. The last one refer to any contracts or mandate assigned to Related Parties and/or Holding Companies and/or Portfolio Companies. The whole process has been developed in accordance with Bank of Italy prescriptions and is reflected in all Board of Directors minutes. Bank of Italy inspections, which have been always positive for Ambienta, focus on the policy and its effective implementation.

03.3. Additional information. [Optional]


SG 04. Identifying incidents occurring within portfolios (Private)


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