Ainda has a publicly responsible investment policy in its placement document (Prospecto de Colocación), its web page and its corporate presentation published in the web page. As part of the regulation of CKDs in Mexico, Ainda is subject to reporting and transparency policies set by the Mexican Stock Exchange, therefore we have no variations or exceptions to the RI policy and ESG risk identification described above.
As mentioned earlier, the key elements of the RI policy that Ainda has are:
1. Internal and third party ESG analysis into the investment process
ESG risk analysis consists first on the surveillance conducted by external lawyers, seeking full compliance with all applicable permits related to environmental and social impact, typically known as MIA and EVIS, respectively. In a second stage Ainda, (alone or in conjunction with its potential partner(s)) hires an external ESG assessment in order to analyse environmental and social risks and develop a mitigation plan.
2. Solid corporate governance at the GP level that is replicated in the SPV´s
Under the terms of our investment contracts, Ainda undertakes all necessary efforts, research, and analyses of all available information to ensure that sound investments. Ainda evaluates the feasibility of each project in accordance with international best practices in the private equity sector. Once Ainda has concluded all its analyses, it presents the results of its assessments to the corporate governance bodies, which decide whether to approve the investment or not. Its corporate governance bodies include an internal Audit Committee, an Investments Committee and a Technical Committee, with independent members and LP's (some of which are are UNPRI signatories as well). Therefore, besides internal analyses performed as part of Ainda’s investment process, ESG risks and opportunities in its projects are subject to independent assessments and monitoring.
On top of the corporate governance that a listed fund as Ainda has to have, we have Proeza as a partner, an international conglomerate that contributes with an extensive local and global experience in the management of social and environmental risks (Proeza operates manufacturing plants in XX countries), as well as through their participation in the Audit and Compensation Committees
3. An internal Ethics and Conduct Code that protects investor interests by including PRI
All employees must sign the Ethics and Conduct Code and thus accepting to implementation and enforcement PRI. Employees must renew their adherence to said Code each anniversary.
4. Internal performance evaluation that includes ESG risks and opportunities identification.
Ainda's compensation policy establishes that each fund employee must be evaluated in terms of her/his performance in each of the investment processes in which he/she participates during the evaluation period. Ainda’s investment process includes ESG risk and opportunity identification.Annual bonuses are defined in terms of the annual performance evaluation.
5. Promoting the adoption of UNPRI by participating in forums and workshops
Ainda’s C-level employees have participated in almost every forum that PRI has organized in Mexico. Additionally, staff level have joined and contributed in different workshops with current and potential signatories as well. Besides, Ainda’s C-level employees often join the most prestigious panels in the industry, through which they continually reinforce ESG messages, following up through social media posts.
6. Developed a RI Program that involves all Ainda’s staff
Ainda developed a Responsible Investment Program that involves all its staff, having in mind compliance of all responsible investment principles, with reviews and updates every quarter.
7. ESG Benchmarking through GRESB
As a result of a recommendation made by UNPRI, beginning 2020, Ainda is joining GRESB which will help us identify ESG risks and opportunities.
8. Incorporating UNPRI and ESG in the SPV’s
Ainda is a hands-on investor which actively participates in the administration and governance bodies of the portfolio companies (SPVs). We are ensuring that the companies implement PRI by including specific commitments in all relevant documents of the transactions (SPA, SHA, among others). Moreover, Ainda and/or its partners ensure that the SPV or equivalent figure is properly staffed with the necessary resources who will be responsible for monitoring compliance with ESG principles and with the recommendations provided in the third-party assessments. We also ensure that third parties involved in the project, such as EPC and O&M contractors, include ESG policies in their key processes and incorporate proper talent in their staff to manage and mitigate ESG risks.