Following its commitment to responsible investment and the integration of Environmental, Social and Governance (ESG) factors, Firtsly, EDM has adopted a policy that exclude companies deriving their main revenues from controversial weapons, pornography and gambling.
However, all exclusions depends on a case-by-case basis:
EDM’s responsible investment policy does not make any a priori exclusions ahead of the definition of investment universes.
EDM’s selection process makes it unlikely that a company whose practices are doubtful in certain regards can satisfy the required standards of quality, visibility and sustainability.
Secondly, EDM has an internal policy that describes our internal methodology. The investment team analyze each company of our Portfolio according to our internal criteria on Environmental (active policy on reducing CO2 emissions, carbon footprint), Social (active policy concerning gender diversity), Governance (board members, % independent members, family/Board ownership) and finally we set an internal rating for each company that we usually compare to Sustainalytics score. According to that, if it is necessary we contact the company in order to obtain more data. So it is fundamental to EDM to practice Engagement,
Our next step is to improve in-depth analysis and incorporate additional internal criteria.