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Nexxus

PRI reporting framework 2020

You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income

アクティブ運用している債券におけるESGの組み入れ

実施プロセス

FI 01. Incorporation strategies applied

以下を記載してください。 (1)組織でアクティブ運用する債券投資について、どのESG組み入れ戦略や組み合わせを使用しているか(2)各戦略が適用されるアクティブ運用債券投資合計の割合(+/- 5%)
社債(非金融)
0 スクリーニングのみ
0 テーマのみ
0 統合のみ
100 スクリーニング + 統合戦略
0 テーマ + 統合戦略
0 スクリーニング + テーマ戦略
0 3つの戦略すべての組み合わせ
0 組み入れ戦略を適用していない
100%

01.2. 特定のESG組み入れ戦略を選択している理由と、使用する戦略の組み合わせを説明してください。

Nexxus is an alternative asset manager which through its mezzanine debt and private equity funds, provides flexible capital solutions to mid-sized companies with growth potential in Mexico, Spain and Portugal.

Nexxus Mezzanine Fund is a multi-industry, diversified fund that can offer strategic financing solutions, often not available, to mid-size companies in Mexico. NMF looks to provide custom made structures, to support their growth and temporally liquidity needs that enable midsized companies to transition into an institutional business model.

Nexxus applies a combination of screening and ESG integration strategies to its debt financing. The reasons to choose this ESG combination strategy are threefold:

  • Fiduciary duty, understanding that ESG considerations are at the heart of Nexxus Mezzanine Fund investors’ strategy.
  • Our understanding that the combination of both ESG strategies contributes to a better risk management; and
  • Through the mezzanine financing, Nexxus has a real opportunity to influence the adoption of ESG considerations within its Borrowers, and from a wider perspective, in Mexico’s mid-sized companies market

01.3. 補足情報 [任意]

We act as responsible investors in our day-to-day, integrating ESG factors in each of the phases of our financing process.

  • Pre-Financing: exclusions list.
  • Evaluation: major ESG risks analyzed.
  • First Credit Committee: ESG considerations.
  • Due Diligence: Deep dive analysis of ESG risks
  • Credit Committee Approval: ESG risks consideration
  • Documentation: ESG reporting obligations included in the Loan Agreement
  • Credit monitoring: borrower report of ESG risks and ESG issues discussed at our yearly Portfolio Review until amortisation.

During the pre-financing phase we apply a negative screening to potential borrowers prior to analyse a financing transaction and we rule out financing companies that participate in any of the following businesses or activities:

  • Illegal economic activities: production, marketing or other activity, which is illegal under the laws or regulations of the jurisdiction of origin;
  • Tobacco and distilled alcoholic beverages - the production and trade of tobacco and distilled alcoholic beverages and related products;
  • Production and trade of weapons and ammunition: the financing of the production and trade of weapons and ammunition of any kind, including chemical weapons and the mining, processing and/or sale of uranium for weapons purposes
  • Casinos: the financing of casinos and equivalent undertakings.
  • Restrictions in the information technology sector: research, development or technical applications related to electronic data programs or solutions specifically aimed at internet gambling and online casinos
  • Life sciences sector: where support is given to the funding of research, development or technical applications related to; (i) human cloning for research or therapeutic purposes; or (ii) genetically modified organisms (GMOs)
  • Dams that do not comply with the World Commission on Dams (WCD Framework)
  • Mining or trade in rough diamonds not certified by the Kimberley Process;
  • Artisanal mining (mining using rustic tools usually unregulated)
  • Manufacture, storage and transport of Persistent Organic Pollutants (as defined in the Stockholm Convention) and of certain hazardous industrial chemicals and pesticides (as defined in the Rotterdam Convention)
  • Nuclear energy-related activities that do not meet the standards outlined by the International Atomic Energy Agency;
  • Illegal logging and subsequent marketing of timber and related forest products; and
  • Energy sector activities or projects within or adjacent to UNESCO World Heritage sites

FI 02. ESG issues and issuer research

02.1. 発行体に対する分析の一部として体系的に調査するESG要因を明示してください。

社債(非金融)
環境データ
社会的データ
ガバナンスデータ

02.2. 入ってくるESG情報のフォーマットと主な情報源を明示してください。

この情報の提供者を説明してください
この情報の提供者を説明してください

具体的に記載してください

          We conduct Borrower ESG due diligence prior to the Credit Committee approval. ESG DD findings are discussed in the Credit Committee.
        
この情報の提供者を説明してください
この情報の提供者を説明してください
この情報の提供者を説明してください

02.3. 使用されているESG情報を簡単に説明してください。ESG組み入れ戦略全体における情報源の違いを明らかにしてください。

The main source of ESG information used is the ESG due diligence. The ESG due diligence is performed internally and covers at the following items:

(i) Analysis of the adequacy of the borrower according to the exclusions and restrictions defined in Nexxus’ ESG policy.

(ii) High-level analysis of the geographies and sectors in which the company operates from an ESG perspective.

(iii) Specific analysis of the company to assess ESG risks and opportunities.

The ESG Due Diligence process ensures that the following aspects are covered when analysing new financing opportunities:

  1. Respect of workers’ human rights
  2. Maintain safe and healthy work conditions for employees and contractors
  3. Prudent and responsible environmental management of operations, ensuring an efficient use of natural resources as well as mitigation of environmental risks and issues
  4. Maintain high standards of business integrity, avoid corruption in any of its forms and complying with laws and regulation applicable against bribery, fraud and money laundering
  5. Apply a good business management establishing clear responsibilities, procedures and controls and applying best corporate governance practices
  6. Follow as a standard an inclusion and diversity policy

02.4. 補足情報 [任意]

The results of the Due Diligence are included in a report of conclusions that details the most relevant issues from an ESG perspective of the borrower. Those conclusions are presented to the Credit Committee to inform the financing decision.


FI 03. Processes to ensure analysis is robust

03.1. 組織のESG調査プロセスの堅牢性を確保する方法を記載してください。

03.2. ESG情報または分析を投資チーム内で共有する方法を記載してください。

03.3. 補足情報 [任意]

It is important clarify that we manage private debt and our financing process is similar to the investment process of our private equity management arm. It has the following phases:

  1. Pre-Financing: exclusions list.
  2. Evaluation: major ESG risks analysed.
  3. First Credit Committee: ESG considerations.
  4. Due Diligence: Deep dive analysis of ESG risks
  5. Credit Committee Approval: ESG risks consideration 
  6. Credit monitoring: borrower report of ESG risks.

A) 実施:スクリーニング

FI 04. Types of screening applied

04.1. 実施するスクリーニングの種類を記載してください。

当てはまる項目を全てを選択してください
社債(非金融)
ネガティブ/ 排他的スクリーニング
ポジティブ/業界最高のスクリーニング
基準に基づくスクリーニング

04.2. 組織内でアクティブ運用している債券に適用するスクリーニングのアプローチを記載してください。

During the pre-financing phase we apply a negative screening to potential borrowers prior to analize a financing transaction and we rule out financing companies that participate in sectors or activities that are contrary to our principles (and our investors') and involve high reputational risk.

04.3. 補足情報 [任意]

We rule out financing companies that participate in any of the following businesses or activities:

  • Illegal economic activities: production, marketing or other activity, which is illegal under the laws or regulations of the jurisdiction of origin;
  • Tobacco and distilled alcoholic beverages - the production and trade of tobacco and distilled alcoholic beverages and related products;
  • Production and trade of weapons and ammunition: the financing of the production and trade of weapons and ammunition of any kind, including chemical weapons and the mining, processing and/or sale of uranium for weapons purposes
  • Casinos: the financing of casinos and equivalent undertakings.
  • Restrictions in the information technology sector: research, development or technical applications related to electronic data programs or solutions specifically aimed at internet gambling and online casinos.
  • Life sciences sector: where support is given to the funding of research, development or technical applications related to; (i) human cloning for research or therapeutic purposes; or (ii) genetically modified organisms (GMOs)
  • Dams that do not comply with the World Commission on Dams (WCD Framework).
  • Mining or trade in rough diamonds not certified by the Kimberley Process.
  • Artisanal mining (mining using rustic tools usually unregulated).
  • Manufacture, storage and transport of Persistent Organic Pollutants (as defined in the Stockholm Convention) and of certain hazardous industrial chemicals and pesticides (as defined in the Rotterdam Convention).
  • Nuclear energy-related activities that do not meet the standards outlined by the International Atomic Energy Agency.
  • Illegal logging and subsequent marketing of timber and related forest products.
  • Energy sector activities or projects within or adjacent to UNESCO World Heritage sites.

 


FI 05. Examples of ESG factors in screening process

05.1. スクリーニング条件に含まれているESG要因の例を挙げてください。

種類

ESG要因

スクリーニング

スクリーニングの説明

During the pre-financing phase we apply a negative screening to potential borrowers prior to analyse a financing transaction and we rule out financing companies that participate in sectors or activities that are contrary to our principles (and our investors') and involve high reputational risk.

As a result, we do not have companies in the portfolio that participate in any of the following businesses or activities:

  • Illegal economic activities: production, marketing or other activity, which is illegal under the laws or regulations of the jurisdiction of origin;
  • Tobacco and distilled alcoholic beverages - the production and trade of tobacco and distilled alcoholic beverages and related products;
  • Production and trade of weapons and ammunition: the financing of the production and trade of weapons and ammunition of any kind, including chemical weapons and the mining, processing and/or sale of uranium for weapons purposes
  • Casinos: the financing of casinos and equivalent undertakings.
  • Restrictions in the information technology sector: research, development or technical applications related to electronic data programs or solutions specifically aimed at internet gambling and online casinos.
  • Life sciences sector: where support is given to the funding of research, development or technical applications related to; (i) human cloning for research or therapeutic purposes; or (ii) genetically modified organisms (GMOs)
  • Dams that do not comply with the World Commission on Dams (WCD Framework).
  • Mining or trade in rough diamonds not certified by the Kimberley Process.
  • Artisanal mining (mining using rustic tools usually unregulated).
  • Manufacture, storage and transport of Persistent Organic Pollutants (as defined in the Stockholm Convention) and of certain hazardous industrial chemicals and pesticides (as defined in the Rotterdam Convention).
  • Nuclear energy-related activities that do not meet the standards outlined by the International Atomic Energy Agency.
  • Illegal logging and subsequent marketing of timber and related forest products.
  • Energy sector activities or projects within or adjacent to UNESCO World Heritage sites.

 

05.2. 補足情報 [任意]


FI 06. Screening - ensuring criteria are met

06.1. 債券投資においてファンドスクリーニングの基準に違反がないことを確認するために組織が使用しているシステムを記載してください。

スクリーニングの種類
ネガティブ/排他的スクリーニング​

06.2. 補足情報 [任意]

As responsible investors in our day-to-day, we integrate ESG factors in each of the phases of our financing process and emphasize two phases:

- perform an ESG Due Diligence to ensure that the Borrower meets our screening criteria and

- undertake a yearly Portfolio Review based on the ESG information provided by the Borrower to ascertain that it continues to meet our screening criteria throughout the life of the mezzanine loan.


C) 実施:ESG問題の統合

FI 10. Integration overview

10.1. ESGを従来の財務分析に統合するアプローチを説明してください。

We act as responsible investors in our day to day, integrating ESG factors in each of the phases of our financing process:

  • Pre - Financing: we have decided to exclude from our financing universe a number of activities that are contrary to our principles and involve high reputational risk.
  • Evaluation: those companies that meet our financing criteria are subject to a preliminary analysis process by the financing team that includes major ESG risks and opportunities.
  • First Credit Committee and Approval of the Due Diligence Budget by the Borrower.
  • Due Diligence: includes a specific ESG due diligence performed internally in order to identify short and long-term ESG risks and opportunities. The results of the analysis are included in a report of conclusions and recommendations containing details of the most relevant issues from an ESG perspective.
  • Credit Committee Approval: once the transaction team is satisfied with the results of the due diligence analysis, the relevant team will prepare the Credit Paper and submit it to the Credit Committee for final approval of the transaction. The Credit Paper includes at least a specific section devoted to the main ESG risks and opportunities identified in the Due Diligence phase.
  • In the debt financing processes, the compliance with Nexxus Responsible Investment Policy is included as a Borrower obligation, within the Loan Agreement and other transaction documents. Likewise, the Loan Agreement includes specific provisions in the Information Undertakings clauses.
  • Full amortisation / maturity: Nexxus’ objective is to be able to prove at amortisation or maturity that we have contributed to the creation of a more sustainable company, from a social and environmental point of view.

10.2. 投資する債券の各種類に対してESG統合アプローチをどのように調整するのか説明してください。

社債(非金融)

We follow the same integration approach in every private debt transaction. Due to our investment strategy (private debt), we do not use comparables within the fixed income market.

10.3. 補足情報 [任意]


FI 11. Integration - ESG information in investment processes

11.1. ESG情報が、通常、投資プロセスの一部としてどのように使用されるのか記載してください。

当てはまるものをすべて選択してください
社債(非金融)
ESG分析をファンダメンタル分析に組み込んでいる
ESG分析が発行体の内部信用評価を調整するために利用される
ESG分析が予想財務業績および将来キャッシュフロー予測を調整するために利用される
ESG分析が発行体の同業グループと比較したランキングに影響する
発行体のESG債スプレッドおよび同セクター企業に対するその相対価値が、すべてのリスクが織り込まれているか否かを把握するために分析される
各種デュレーション/満期の発行体債券へのESG分析の影響が分析される。
感度分析およびシナリオ分析が、ベースケースとESG組み込み証券評価の差を比較する評価モデルに適用される
ESG分析が、ポートフォリオのウェイティング決定に組み込まれている
会社、セクター、国、通貨が、ESGエクスポージャーの変化およびリスク制限の違反についてモニタリングされる
ESGリスクが大きい証券についてポートフォリオのESGプロファイルが検討され、ベンチマークのESGプロファイルと比較して評価される
その他(具体的に記載してください)

11.2. 補足情報 [任意]


FI 12. Integration - E,S and G issues reviewed

12.1. 組織の統合プロセスでESG問題をどのように検討するか示してください。

E(環境)
S(社会)
G(ガバナンス)
社債(非金融)

E(環境)

S(社会)

G(ガバナンス)

12.2. 組織の統合プロセスでE/S/G要因を検討する方法を詳しく説明してください。

社債(非金融)

The ESG due diligence analysis is performed internally and covers at least the following items:

(i) Analysis of the adequacy of the borrower to the exclusions and restrictions defined in this policy;

(ii) High level analysis of the geographies and sectors in which the company operates, allowing the identification of the main ESG risks and opportunities determined by the location and general characteristics of the activity it carries out; and

(iii) Specific analysis of the company to assess its ESG risks and opportunities.

The ESG Due Diligence process ensures that the following aspects are covered when analysing new financing opportunities:

Social:

Respect of workers’ human rights
Maintain safe and healthy work conditions for employees and contractors

Environmental:

Prudent and responsible environmental management of operations, ensuring an efficient use of natural resources as well as mitigation of environmental risks and issues

Governance:

Maintain high standards of business integrity, avoid corruption in any of its forms and complying with laws and regulation applicable against bribery, fraud and money laundering
Apply a good business management establishing clear responsibilities, procedures and controls and applying best corporate governance practices
Follow as a standard an inclusion and diversity policy

The results of the analysis are included in a report of conclusions and recommendations that contains details of the most relevant issues from an ESG perspective for making a financing decision. These conclusions inform the credit report that is analysed in the Credit Committee prior to take any financing decision.

12.3. 補足情報 [任意]


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