CDC incorporates ESG considerations into its directly managed listed equity in the same way as its internally managed private equity investments. Correspondingly, CDC would expect its external managers to approach listed equity in a manner broadly comparable to CDC's own approach.
CDC expects diligence to be performed on listed equities by the fund manager to verify adherence to the ESG requirements of CDC's Code of Responsible Investing. Where gaps are identified, CDC expects the manager to put in place an action plan to bring the investment into compliance over a reasonable period.
CDC also encourages the manager to add value on ESG grounds where it identifies opportunities that might result in the opening of new markets for the business, cost efficiencies, improved community relations, greener production and better supply chain management, amongst others.