The ESG due diligence is performed by an external provider and covers at the following items:
(i) Analysis of the adequacy of the investment to the exclusions and restrictions defined in the 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 investment opportunities:
- Respect of workers’ human rights
- Maintain safe and healthy work conditions for employees and contractors
- Prudent and responsible environmental management of operations, ensuring an efficient use of natural resources as well as mitigation of environmental risks and issues
- 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 conclusions and recommendations report. This report contains details of the most relevant issues from an ESG perspective, to be taken into consideration when making an investment decision. In addition, the report includes recommendations to mitigate the identified ESG risks and identifies the potential ESG opportunities to be tapped during the investment period.
In those cases where the due diligence identifies material ESG risks, Nexxus will require that the investee commits to apply the appropriate measures to mitigate those risks. Nexxus will support the investee by developing action plans with precise objectives, deadlines and resources.