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Qualium Investissement

PRI reporting framework 2020

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

          Fund's By-Laws
        

01.3. Indicate if the investment policy covers any of the following

01.4. Describe your organisation’s investment principles and overall investment strategy, interpretation of fiduciary (or equivalent) duties,and how they consider ESG factors and real economy impact.

Qualium Investissement invests in equity between €20 million and €65 million in companies valued at between €40 million to €300, mainly as a majority shareholder

Shared values

  • Active support to companies and managers to ensure the long-term success of their development plan, including internationally
  • Common strategic vision with the management
  • Long-term support (5 years in average and up to 7-8 years)

Investment strategy

  • French companies that are leaders in their sectors
  • A high-quality, experienced management team
  • A growing sector with real opportunities for consolidation and development

Qualium Investissement incorporates ESG factors both in its investment strategy and in the management of its invesments.

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

In its pursuit of sustainable development and in accordance with the responsible investment charter of its sponsor, the Caisse des Dépôts et Consignations, Qualium Investissement takes ESG factors into consideration when investing in companies and accompanying them in their development.  Taking extra-financial factors into consideration throughout the investment cycle and accompanying portfolio companies in their development help Qualium Investissement to create value for all stakeholder, particularly by enabling:

- better risk management (e.g. supply chain management, reputational risk and employment disputes);

- optimised cost management (e.g. reduced consumption of energy and/or raw materials, higher productivity and lower staff turnover);

- the development of products and services that respond to specific environmental or social needs (e.g. demand from customers and standing out from the competition).

01.6. Additional information [Optional].

          
        

SG 01 CC. Climate risk

01.6 CC. Indicate whether your organisation has identified transition and physical climate-related risks and opportunities and factored this into the investment strategies and products, within the organisation’s investment time horizon.

Describe the identified transition and physical climate-related risks and opportunities and how they have been factored into the investment strategies/products.

Transition and physical climate-related risks and opportunities are factored directly in the investment strategy defined in the By-Laws of the funds. As an illustration, Qualium will not consider new investment opportunities related to activities / industries having an material negative impact on climate change (for instance certain plastic manufacturing industries) or in companies that generate more than 20% of their turnover from activities related to thermal coal.

On the other hand, in its investment strategy, Qualium focuses more and more on digital and services activities with less direct impact on climate change. 

01.7 CC. Indicate whether the organisation has assessed the likelihood and impact of these climate risks?

Describe why your organisation has not yet assessed the likelihood and impact of climate risks

Climate risk is publicly and commonly identified as long term major risk.

01.8 CC. Indicate whether the organisation publicly supports the TCFD?

Explain the rationale

not adapted to Qualium size (AUM <1Bn ; 40 LPs ; 20 peoples ; 13 investments in small or medium companies)

01.9 CC. Indicate whether there is an organisation-wide strategy in place to identify and manage material climate-related risks and opportunities.

Describe how and over what time frame the organisation will implement an organisation-wide strategy that manages climate-related risks and opportunities.

Qualium Investissement is currenttly improving the integration of climate-related risks and opportunites. The aim is to have a closer monitoring of portfolio companies. In this way, Qualium is supported by an external advisor for the implementation. 

 

1.10 CC. Indicate the documents and/or communications the organisation uses to publish TCFD disclosures.


SG 02. Publicly available RI policy or guidance documents

 

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

02.3. Additional information [Optional].


SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

Procedures regarding conflicts of interest are described in the management company Code of Conduct, in the funds Private Placement Memorandum and in the funds By Laws. The Code of Conduct also refers to France Invest (formerly AFIC) Code of Ethics.

The Director in charge of Compliance, Internal Control and Communication (RCCI) is responsible for supervising operations and preventing conflicts of interests. The RCCI is implicated in resolving every potential conflict of interest by ensuring that the appropriate decision-making bodies are informed. He establishes every year a global reporting on compliance and ethics to be presented to the Board of the management Company. This report includes the opinions given by the RCCI on potential conflicts of interest.

 

03.3. Additional information. [Optional]

There are three main categories of conflict of interest identified by the Management Company:

- conflicts of interests applying to employees
- conflicts of interests applying to the funds (co-investment or divestment with affiliated funds or companies for example)
- conflicts of interests applying to LPs

For the first category, Qualium Investissement Code of Conduct lists possible situations which could result in a conflict of interests and describes the appropriate actions to undergo

For the second category, the management company needs to consult fund Advisory Committee*. Decisions related to conflicts of interests bind the management company

For the third category, the resolution depends on the type of conflict

The participation and vote of any member of a decision-making body** who is subject to a conflict of interest will not be taken into account

 

*: The Advisory Boards are usually composed of representative of fund sponsor and main LPs

**: funds’ investment committee, funds' advisory board, management company board, etc.


SG 04. Identifying incidents occurring within portfolios

04.1. Indicate if your organisation has a process for identifying and managing incidents that occur within investee entities.

04.2. Describe your process on managing incidents

As an active investor, Qualium monitors closely its portfolio companies with monthly to quarterly meetings with the management. In case of significant incident, Qualium is usually immediately informed by the management and supports him in its action plan for recovery/rehabilitation if necessary.

Qualium also keeps its LPs informed via its quarterly reporting or specific information  (eg information about the Fipronil crisis affecting one of our portfolio company during summer 2017).


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