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Trilantic Europe

PRI reporting framework 2020

You are in Direct – Private Equity » Pre-investment (selection)

Pre-investment (selection)

PE 05. Incorporating ESG issues when selecting investments

05.1. During due-diligence indicate if your organisation typically incorporates ESG issues when selecting private equity investments.

05.2. Describe your organisation`s approach to incorporating ESG issues in private equity investment selection.

Trilantic Europe is committed to continue enhancing the implementation of ESG matters as part of its due diligence process on potential investments. A particular emphasis in ESG matters has been put into the decision making process of Trilantic Europe V, both while screening and selecting potential investments, and systematic ESG due diligence is performed before making a portfolio investment. ESG parameters are then included in the Investment Committee memo and are taken into account before making the final decision on whether investing in a company or not.

Since Trilantic Europe invests in different sectors and geographies, a flexible approach is adopted in assessing ESG issues throughout the Fund's life, but this will generally include the below:

Environmental

· Consideration of the impact that the target operations/products/services have on the environment (e.g. climate change, pollution levels, etc.).

· Ensure compliance by the target with the relevant environmental regulatory bodies.

· Evaluation of potential measures to reduce the environmental footprint of the target, following acquisition, either in its manufacturing facilities or transportation and delivery.

Social

· Does the target adhere to fair trade practices when sourcing, pricing and distributing products and services (e.g. working conditions, fair market pricing etc.)?

· How does the company source raw materials?

· Do factories respect international health and labour standards?

· Does the target address social metrics such as employee turnover and satisfaction within the company.

· Does the target promote/have initiatives for equal opportunities?

· Does the target engage with local communities or charities? Does it encourage employees to support humanitarian actions?

Governance

· Does the target have a proper decision making board of managers that act in the best interest of the company, including appointment of independent directors?

· Does the target have a specific person responsible for ESG within the company?

· Are ESG targets featured in the remuneration of executives in the company?

· What is the target policy on disclosure and transparency with relevant stakeholders?

05.3. Additional information. [Optional]


PE 06. Types of ESG information considered in investment selection

06.1. Indicate what type of ESG information your organisation typically considers during your private equity investment selection process.

06.2. Describe how this information is reported to, considered and documented by the Investment Committee or similar.

A dedicated section and discussion at the Investment Committee takes place. The material and thus discussion includes the feedback and findings made during the due diligence by the team with the support of external industry experts and consultants.


PE 07. Encouraging improvements in investees (Private)


PE 08. ESG issues impact in selection process (Private)


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