You selected an `Other` option in table SAM 02.4 above, please specify
Using a manager's initial ESG score calculated based on the responses to the ESG due diligence questionnaire, Robeco Private Equity prepares a high-level ESG plan for engagement with a PE fund manager in the post-investment period. This plan forms an integral part of the ESG section of Robeco Private Equity's final investment proposal. The RI considerations incorporated in such a plan could include encouraging ESG integration in due diligence, introducing monitoring of material ESG factors in portfolio companies, and reporting ESG performance of portfolio companies to investors.
As part of the selection process and analysis Robeco Private Equity also checks a PE manager's existing portfolio for ESG-related incidents in investee companies and enquires about the specific ESG-related plans that the manager has set for the near future. Information on past incidents provides an indication of potential ESG risks and how portfolio companies and a manager has dealt with them in the past.
Describe how the ESG information reviewed and discussed affects the selection decision making process.[OPTIONAL]
Next to the ESG score, which results from the assessment of the ESG Due Diligence Questionnaire, we also check whether the manager's exclusion policies are in line with Robeco's Exclusion Policy, and assess the ESG risks of the countries and the sector(s) the manager invests in. In addition to these items, a high-level plan for ESG engagement with the manager in the ownership phase is part of the ESG section in the final investment proposal. When the investment proposal is discussed in the Investment Committee the ESG assessment is weighed in the final investment decision. If a manager does not have an ESG approach in place and is not willing to work on establishing one in the future, this will negatively affect the investment decision.