ESG aspects are taken into account in the selection and investment process:
No branch of industry is favoured but sector exclusion policy applies to three sectors: alcohol/tobacco, weapons, gambling, pornography clonage. Screening exclusion concerns companies having material negative impact on the environment, in particular through their contribution to the climate change, the water pollution, or the diminution of biodiversity. Every week, the investment team screens target companies in meeting. A first ESG screening is operated during these meetings. Further analysis can be performed if necessary and discussed by the Investment Committee.
ESG Due Diligences are systematically carried out prior to any investment in order to identify potential risks and / or value creation opportunities. They deal with environmental, social, governance and external stakeholders aspects. Qualium Investissement does not focus on pre-established environmental, social or governance criteria but assesses all relevant criteria depending on the company’s size, activity, implantation and specificities (context). The results are incorporated in the investment memorandum.
The ESG Due Diligence results are discussed by investment team and presented to the Investment Committee. In case an alarming point is perceived (major risk on product, major risk and / or controversy regarding ethics, etc,) the investment process will continue only if there is a possibility to improve the situation during its shareholding period or prior to the investment.