The role of the taking into account of ESG factors is important from the very beginning of the investment decision- process. Indeed, before making a long-term commitment with a company, it is important that we are comfortable with ESG risks. This begins with the choice of sectors with relatively low environmental externalities (NICTs (New Information and Communication Technologies), Business Services, Health, Advanced Industry).

The fact that the company that we are analysing has no CSR policy concerning the ESG issues is not a factor in the abandonment of our investment. Nevertheless, before the final investment decision is made, we validate two essential points:

- The business model of the analysed company must not be based on social or environmental risk taking

- The managers are open to improve their ESG practices and discuss with Isatis-Capital on the actions plan for the future development.

A specific Due diligence questionnaire is submitted to the new company covering the 3 pillars ESG mostly focused on qualitative approach. The objective of this questionnaire is to measure the knowledge of the managers on their ESG issues/challenges and how ISATIS Capital will help and support the company to improve their practices in terms of ESG in the future.