ISATIS Capital expects its investment managers (PM) and analysts to assess at the outset of discussions with candidate companies the risks/opportunities, strengths and weaknesses of the company in addressing ESG issues. A specific due diligence questionnaire has been created to this end. A risk scale must be established in the investment notes based on management's knowledge and sensitivity to ESG issues, the degree of management acceptance to progress and the level of transparency. Those different points should help the investment committees to take a decision. In 2019, it has been done automatically.
Once the investment is done, the portfolio managers should arise the ESG topics regularly during the board meeting. It is in progress, seven specific analyses on ESG have been done with some recommandations to discuss in the board.
A follow-up should be made once a year where the companies should provide ESG KPIs on E and S and the analyst should report an analyse on the ESG trend of the companies.
In case of ESG incident, ISATIS Capital expects its portfolio managers to react, alert and help the company to solve the problem.