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Cordiant

PRI reporting framework 2020

You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income

アクティブ運用している債券におけるESGの組み入れ

実施プロセス

FI 01. Incorporation strategies applied

以下を記載してください。 (1)組織でアクティブ運用する債券投資について、どのESG組み入れ戦略や組み合わせを使用しているか(2)各戦略が適用されるアクティブ運用債券投資合計の割合(+/- 5%)
社債(金融)
0 スクリーニングのみ
0 テーマのみ
0 統合のみ
0 スクリーニング + 統合戦略
0 テーマ + 統合戦略
0 スクリーニング + テーマ戦略
100 3つの戦略すべての組み合わせ
0 組み入れ戦略を適用していない
100%

01.2. 特定のESG組み入れ戦略を選択している理由と、使用する戦略の組み合わせを説明してください。

Positive and Negative Screening 

  • Cordiant’s Exclusion List
  •  Assessment and Management of Environmental and Social Risks & Impacts: Integration of IFC Performance Standards & Equator Principles  for determining, assessing and managing environmental and social (E&S) risks.
  • The IFC standards inform our Environmental and Social (E&S) due diligence framework that in turn creates the E&S Action Plans that are part of loan agreements
  • The Equator Principles undergird the applicable risk management framework.
  • GIIN / IRIS: Potential Anticipated Impacts

Thematic: Seeking Sectors Inherently Impactful

  • Cordiant seeks exposure to themes that align with NDCs and SDGs, and hence, through Seeking Best Practices
  • Sustainable production practices and modernization of agriculture
  • Clean Energy
  • Sustainable Transportation
  • Information and Communication Technologies: Digital Communications
  • Improving food security
  • Increasing agricultural exports
  • Generating renewable energy
  • Increasing energy efficiency (and storage)
  • Bridging the digital divide
  • Integration of Firm-Level DD & GAP Analysis for an alignment with International Standards
    • Application of IFC Performance Standards
    • Occupational health and Safety Guidelines
    • Environmental Health & Safety Guidelines

Condition Precedent & Loan Agreement: 

  • Action Plan: The ESMS incorporated as Compliance-based approach to the monitoring process

01.3. 補足情報 [任意]

Cordiant’s capacity in terms of ESG Appraisal and Management in being able to control, reduce, and mitigate material risks lies in our underlying procedure of integrating ESG as part of the In-Depth Due Diligence process. The DDQ and ESG form the core of the Investment Memorandums, decision-making process, and the loan agreements. This ensures a robust management system.

A clear understanding of the potential risks and impacts allows Cordiant to assess which IFC Performance Standard applies to a specific business strategy, and thereafter systematically engage in a discussion on the risk-profile of the firm.

As a means to do so, Cordiant has developed sectoral technical guidance documents for an in-depth due diligence that touches upon and aligns with the relevant certifications and principles of sustainable practices on the ground. That way, it is able to consistently and systematically apply best impact and risk management practices across sectors, industries and commodities. This is both time-effective and creates a lot of value for the borrowers, as through our investments, they become aligned with the applicable international standards that are relevant for their operations.

As such, the first due diligence questionnaire, which is based on all SASB, IFC, and IRIS metrics, provides a consistent framework through which to screen the compliance of a potential borrower.

The results of the Due Diligence reflects the potential investee’s commitment to development impact and good ESG management. This is relevant to the issue of “Green Washing” whereby some firms speak the language of impact and ESG as a way of securing financing, but are not committed to either in practice. Hence, Cordiant conducts an internal E&S briefing as a final step in the Due Diligence.

If concerns seem highly material, consultants will be hired to evaluate and monitor environmental and social risks so that Cordiant can effectively recommend an appropriate action plan. Where necessary, the consultant will provide Cordiant with input on the risks and the steps necessary to mitigate these risks during the investment phase.

During the Gap Analysis, Cordiant reviews the DD Report and determines the requirements and mitigants necessary for closing the identified gaps. This stage is critical, as it highlights the firm’s performance in managing its own E&S risks relative to an alignment with international standards (IFC).

This gap analysis also serves as the basis for the subsequent ESMS & Action Plan. Indeed, the team uses the report to determine the relevant remediation mechanisms (ESMS) that will be included in the Action Plan.

This action plan includes all necessary measures to mitigate adverse outcomes. This Action Plan will be incorporated in the Loan Agreement package (or the structure around it). It will clearly outline how ESG matters will be handled during the life of the investment in order to meet the Cordiant’s requirements and expectations.

Monitoring & Evaluation are vital aspects of the process to ensure that the borrower’s actions are consistent with the agreed- upon ESG plan. Monitoring is conducted either on a bi-annual or yearly basis- depending on the materiality of risks- and throughout the life of the loan. Cordiant conducts a yearly monitoring of the firms’ performance through (i) the Annual Monitoring Report (AMR) which quantifies risks E&S indicators; (ii) the Action Plan which forms the compliance indicators and loan agreement; and (iii) the Developmental Impact Baseline Survey.

  • Monitoring & Measurement of the Developmental Impacts
  • Monitoring of Compliance with Action Plan & Mitigation Measures: Cordiant is responsible for developing an Action Plan (AP) with the borrower that will serve as a benchmark which is then used as a basis for monitoring compliance and progress.

As such, covenants and conditions prior to disbursement include that borrowers;

  • Comply with all Applicable National Laws
  • Comply with Applicable IFC Performance Standards
  • Regular monitoring: Cordiant will stay informed and respond to new developments and/or risks by building on the relationship established during DD
  • Commitment to Monitoring & Evaluation: The Borrower will agree to allow Cordiant to conduct baseline surveys & supervisory Monitoring & Evaluations (M&E), so to as to measure the firm’s performance or underperformance of sector-specific impact & ESG performance indicators. Those include;
  • Annual Monitoring Report Compliance
  • Action Plan’s Monitoring Indicators
  • Agree to report on performance: This will serve towards Performance Evaluation Reports, as well as to assist the company to ensure its ongoing compliance with applicable standards, implementation of ESG Action plan and improvement of ESG performance.

FI 02. ESG issues and issuer research (Private)


FI 03. Processes to ensure analysis is robust

03.1. 組織のESG調査プロセスの堅牢性を確保する方法を記載してください。

03.2. ESG情報または分析を投資チーム内で共有する方法を記載してください。

03.3. 補足情報 [任意]

Since the investment team as a whole is responsible for the legal agreement and the condition precedent, the information is shared from the preliminary assessment to post-decision (monitoring & evaluation). 


A) 実施:スクリーニング

FI 04. Types of screening applied

04.1. 実施するスクリーニングの種類を記載してください。

当てはまる項目を全てを選択してください
社債(金融)
ネガティブ/ 排他的スクリーニング
ポジティブ/業界最高のスクリーニング
基準に基づくスクリーニング

04.2. 組織内でアクティブ運用している債券に適用するスクリーニングのアプローチを記載してください。

Each potential investment is subjected to a multi-stage approval process with analysis of the ESG risks incorporated at the outset of the process. Cordiant assesses potential investments on a variety of levels, beginning with the sector (i.e. does it fit into Cordiant’s preferred areas of focus?). The first step of screening is therefore rejecting undesirable investment categories and ensuring that all proposed investments do not show evidence of excluded/prohibited activities.

  • By investing in sectors with already high potential for positive social, economic, and environmental impact, in addition to financial return considerations, Cordiant seeks companies that support our Impact Investor themes that include bridging the digital divide, food security and the modernisation of agriculture, enhancing energy security whilst reducing greenhouse gas emissions, improving transportation whilst reducing pollution and sustainable urbanisation. Hence, Cordiant seeks to invest  in  well‐managed and commercially-minded  enterprises  that  generate  positive  development  outcomes. 

04.3. 補足情報 [任意]

PROCEDURES AND TECHNICAL METHODOLOGY

A structured business approach to ESG disclosure assists Cordiant in managing social, environmental and ethical risks and is increasingly seen as a priority and precondition to sustainable development efforts. Cordiant believes that proper respect for ESG principles can optimize investment strategies, risk management, responsiveness in volatile markets, reduce costs for all parties engaged in investment activities, as well as strengthen stakeholder relations and improve a borrower’s brand, reputation, and profitability.

Each potential investment is subjected to a multi-stage approval process with analysis of the ESG risks incorporated at the outset of the process. Cordiant assesses potential investments on a variety of levels, beginning with the sector (i.e. does it fit into Cordiant’s preferred areas of focus?). The first step of screening is therefore rejecting undesirable investment categories and ensuring that all proposed investments do not show evidence of excluded/prohibited activities.

By investing in sectors with already high potential for positive social, economic, and environmental impact, in addition to financial return considerations, Cordiant seeks companies that support our Impact Investor themes that include bridging the digital divide, food security and the modernisation of agriculture, enhancing energy security whilst reducing greenhouse gas emissions, improving transportation whilst reducing pollution and sustainable urbanisation. Hence, Cordiant seeks to invest  in  well‐managed and commercially-minded  enterprises  that  generate  positive  development  outcomes  (see below).

 

In keeping with our chosen set of Performance Standards, Cordiant has implemented a thorough process for screening investments aimed at achieving E&S Objectives. This process systematically draws from (i) IFC Performance Standards for ESG risk management (ii) Sustainability Accounting Standards Boards (SASB) standards; and (iii) IRIS Metrics[1] managed by the Global Impact Investor Network (GIIN) for Developmental Impact Performance Management. The strategy involves Cordiant proactively engaging with borrowers on ESG matters, through active monitoring of the evolution of ESG risks and compliance with agreed-upon mitigation measures and Action Plans, throughout the life of the investments.

Preliminary Due Diligence: Identification & Assessment of Environmental and Social Risks & Impacts

1. Development Impact Assessment

  • Assessment of Business Contribution to Development Impact
  • Assessment of Business Contribution to Sustainable Development Goals

 

2. Industry ESG Risk Profile & Score: Quantification of ESG industry risks

  • ESG integration in internal credit rating
  • ESG Risk Evaluation & Discussion

Note that Cordiant has been developing sectoral policies for an in-depth due diligence framework that touches upon and aligns with the relevant certifications and principles of sustainable practices on the ground.

That way, it is able to consistently and systematically apply best impact and risk management practices across sectors, industries and commodities. This is both time-effective and creates a lot of value for the borrowers, as through our investments, they become aligned with the applicable international standards that are relevant for their operations. As such, the remaining assessment procedure used for an alignment with international standards includes the following steps;

 

Final Sectoral Due Diligence & Assessment of Performance Against IFC Standards

1. Firm-Level ESG Risk Identification

  • E&S Risk Categorization (IFC)
  • Identification of Applicable IFC Performance Standards

2. Firm-Level Due Diligence: Application of Sectoral Technical Procedures for a Consistent and Integrated Risk Management System

  • Application of in-depth Operational Due Diligence (DD no1): Evaluation of ESG Risks Management Systems
  • Applicable Occupational health and Safety Guidelines (IFC)
  • Applicable  Environmental Health & Safety Guidelines (IFC)
  • Applicable Sustainability Accounting Standards (SASB)
  • Other industry standards, as relevant (by sector)

3. Firm-Level Risk Assessment: Application of IFC Performance Standards:

  • Application of General IFC Performance Standards Due Diligence (DD no2)
  • GAP Analysis for Alignment with International Standards

4. Firm-Level Development Impact Assessment: Impact Quantification & Monitoring Reports

  • Application of the Impact Measurement & Management Framework: Based on the new Global Impact Investing Network IRIS+ metrics (DD no3)
  • Applicable Harmonized Indicators for Private Sector Operations (HIPSO)
  • Application of Relevant Gender ESG & Impact Metrics (DD no4)

After agreeing upon a potential borrower’s financial, ESG and Impact goals, and applying best practice, Cordiant works with the owner of the company to develop an E&S Action Plan that includes all necessary measures to mitigate adverse outcomes

Monitoring & Evaluation are vital aspects of the process to ensure that the borrower’s actions are consistent with the agreed- upon ESG plan. Monitoring is conducted either on a bi-annual or yearly basis- depending on the materiality of risks- and throughout the life of the loan. Cordiant conducts a yearly monitoring of the firms’ performance through (i) the Annual Monitoring Report (AMR) which quantifies risks E&S indicators; (ii) the Action Plan which forms the compliance indicators and loan agreement; and (iii) the Developmental Impact Baseline Survey

 

Final Assessment & Decision Process

1. Post Due Diligence:

  • ESG Debriefing
  • Elaboration of the ESMS & Action Plan

 

2. Monitoring & Evaluation: Reporting Framework

  • Annual Monitoring Reports (AMR) & Evaluation of Compliance
  • Development Impact Annual Monitoring Report
  • Action Plan Compliance Monitoring & Evaluation Process
  • Annual Monitoring Report & Baseline KPI’s for ESG Disclosure

 

4. Loan Agreement & Fund Protection

5. Conditions Precedent: Loan Agreement Prior to Disbursement

 

HEALTH, SAFETY PROCESS & INCIDENT MANAGEMENT SYSTEM

Each sector in which Cordiant invests present its own set of Occupational Health and Safety (OHS) risks, which requires the team to systematically integrate health and safety prevention principles as part of the Due Diligence, Action Plans, as well as incorporating specific KPIs into Monitoring & Evaluation Reports.

E&S Safety Risk Evaluation:

  • Management commitment and employee involvement
  • Worksite analysis and hazard identification
  • Hazard prevention and control
  • Employee safety training

 

Work Related Activities Incidents:

  • Systematic Application of the Procedure for Investigation, Monitoring and Reporting of OHS Incidents
  • Action Plan & Emergency Response Plan:
  • Corrective measures are included in an Emergency Response Plan & Action Plan. Borrowers must have implemented and complied with such procedures to investigate all near misses and accidents and that effective corrective measures efficient in order to avoid future serious accidents.

 

Monitoring & Evaluation:  

  • Compliance with Subsequent Monitoring Report

FI 05. Examples of ESG factors in screening process

05.1. スクリーニング条件に含まれているESG要因の例を挙げてください。

05.2. 補足情報 [任意]

See the previous answer and additional explanation. 


FI 06. Screening - ensuring criteria are met

06.1. 債券投資においてファンドスクリーニングの基準に違反がないことを確認するために組織が使用しているシステムを記載してください。

スクリーニングの種類
ネガティブ/排他的スクリーニング​
ポジティブ/業界最高のスクリーニング
基準に基づくスクリーニング​

06.2. 補足情報 [任意]


B) 実施:テーマ

FI 07. Thematic investing - overview

07.1. テーマ投資の割合を示してください。

具体的に記載してください

          ESG investments
        
100 %

07.2. テーマ債券投資に対する組織のアプローチについて説明してください。

A structured business approach to ESG disclosure assists Cordiant in managing social, environmental and ethical risks and is increasingly seen as a priority and precondition to sustainable development efforts. Cordiant believes that proper respect for ESG principles can optimize investment strategies, risk management, responsiveness in volatile markets, reduce costs for all parties engaged in investment activities, as well as strengthen stakeholder relations and improve a borrower’s brand, reputation, and profitability.

Each potential investment is subjected to a multi-stage approval process with analysis of the ESG risks incorporated at the outset of the process. Cordiant assesses potential investments on a variety of levels, beginning with the sector (i.e. does it fit into Cordiant’s preferred areas of focus?). The first step of screening is therefore rejecting undesirable investment categories and ensuring that all proposed investments do not show evidence of excluded/prohibited activities.

By investing in sectors with already high potential for positive social, economic, and environmental impact, in addition to financial return considerations, Cordiant seeks companies that support our Impact Investor themes that include bridging the digital divide, food security and the modernisation of agriculture, enhancing energy security whilst reducing greenhouse gas emissions, improving transportation whilst reducing pollution and sustainable urbanisation. Hence, Cordiant seeks to invest  in  well‐managed and commercially-minded  enterprises  that  generate  positive  development  outcomes  (see below).

 

Seeking Inherently Impactful Sectors

 

  • Sustainable production practices and modernization of agriculture
  • Clean Energy
  • Sustainable Transportation
  • Information and Communication Technologies: Digital Communications
  • Other sectors, as appropriate 

 

Cordiant’s ESG analyst then identifies an investment’s potential impact:

 

Seeking Best Practices & Impact Themes: Environment, Health and Quality of Life

 

  • Improving food security
  • Increasing agricultural exports
  • Generating renewable energy
  • Increasing energy efficiency (and storage)
  • Bridging the digital divide
  •  

07.3. 補足情報 [任意]


FI 08. Thematic investing - themed bond processes

08.1. グリーン債原則に従ったテーマ債券の発行に関連する透明性や開示を奨励しているかどうか示してください。社会貢献債原則またはサステナビリティ債ガイドライン。

08.2. 発行体が提供文書の記載に従って、債券収益を配分していないときに取るべき対応策を説明してください。

The following are subsets of all potential IRIS & HIPSO development impact metrics that Cordiant tracks, where applicable, during the life of an investment.
 

General Cross-Sector Indicators:

  • Community Development Contributions (CSR)
  • Direct Employment – Construction Phase
  • Direct Employment – Operations and Maintenance
  • International Sustainability Certification (ISO)
  • Payments to Government

Agribusiness

  • Amount of Hectares of Land (i) Indirectly Controlled (ii) Directly Controlled
  • Amount of Hectares Under Sustainable Agriculture Practices
  • Amount of HA preserved
  • Amount of forest replanted
  • Average Agricultural Yield
  • Improved Market Linkages: Number of individual farmers Reached throughout the Supply Chain
  • Amount Disbursed for project-related CSR programs (yearly)
  • Amount of Water Recycled
  • Amount of Solid Waste Recycled for Energy Production
  • Export Sales Revenue
  • Farmer Sales Revenue

Clean Energy

  • Power Distribution Estimation Methodology
  • Power Production
  • Ratio: Grid / Total Amount Produced
  • Local Grid: Number of Beneficiaries

Information & Communication Technologies

  • Number of Fixed Data Subscriptions
  • Number of Fixed Voice Subscriptions
  • Number of Mobile Subscriptions

 

08.3. 補足情報 [任意]


FI 09. Thematic investing - assessing impact

09.1. 組織のテーマ投資の環境的または社会的影響を評価する方法を示してください。

09.2. 補足情報 [任意]

Impact Evaluation: Assessment of Business Contribution to Development Impact (Positive Screen)

During this Phase, Cordiant’s ESG team works closely with the Investment Team. As part of its due-diligence, Cordiant uses Impact Reporting Investment Standards (IRIS) developed by the GIIN to establish a baseline survey. Those are used in conjunction with the IFC’s “Harmonized Development Results Indicators (HIPSO) for Private Sector Investment Operations”. Cordiant selects which relevant subset of cross-sector & sector-specific performance metrics are aligned with the objective of the company. The objective is to have measurable and quantifiable nonfinancial returns, to monitor Cordiant`s own performance in terms of development impact, as well as to monitor the performance of its borrower companies from one supervision to the next.

Monitoring & Evaluation

Monitoring & Evaluation are vital aspects of the process to ensure that the borrower’s actions are consistent with the agreed- upon ESG plan. Monitoring is conducted either on a bi-annual or yearly basis- depending on the materiality of risks- and throughout the life of the loan. Cordiant conducts a yearly monitoring of the firms’ performance through (i) the Annual Monitoring Report (AMR) which quantifies risks E&S indicators; (ii) the Action Plan which forms the compliance indicators and loan agreement; and (iii) the Developmental Impact Baseline Survey.

  1. Monitoring & Measurement of the Developmental Impacts
  2. Monitoring of Compliance with Action Plan & Mitigation Measures: Cordiant is responsible for developing an Action Plan (AP) with the borrower that will serve as a benchmark which is then used as a basis for monitoring compliance and progress.
  3. Annual Monitoring Report (AMR)

C) 実施:ESG問題の統合

FI 10. Integration overview

10.1. ESGを従来の財務分析に統合するアプローチを説明してください。

At every stage of the process, cordiant includes the ESG risk-management components:

  1. Cordiant Structuring Group: Thematic and Sectoral Decisions (SDG alignment)
  2. Credit Analysis : Internal ESG Credit score and Imapct Summary
  3. Weekly Updates & Meetings: Collaboration and open discussions between all investment team members - Raising any ESG issues, concerns or red flags
  4. Preliminary Approval: Raising both credit, financial and ESG issues.
  5. Portfolio Fit, Macro Allocation, and Sector Outlook
  6. KYC Screens & Impact Investing: Including ESG Due Diligence and Development Impact Survey
  7. Final Approval: ESG Debreifing 
  8. Internal Credit Committee: Final ESG Concerns raised. 
  9. External Credit Committee

Final Assessment & Decision Process

After agreeing upon a potential borrower’s financial, ESG and Impact goals, and applying best practice, Cordiant works with the owner of the company to develop an E&S Action Plan that includes all necessary measures to mitigate adverse outcomes. This Action Plan will be incorporated in the Loan Agreement package (or the structure around it). It will clearly outline how ESG matters will be handled during the life of the investment in order to meet the Cordiant’s requirements and expectations.

Post-Investment Support

We believe that we have a responsibility, as impact investors, for our investments to serve these dual purposes of stewardship and wealth creation. Accordingly, we engage with management on important issues, whether environmental or economic. This collaboration serves to obviate or minimize adverse impact on the environment or to the local population and workers. Hence, when possible, our ESG officer will collaborate with businesses to set up mitigation measures through readily accessible “remedies toolkits”.

Technical Assistance & Capacity Building Support

Cordiant is committed to understanding the challenges & identifying the solutions that may foster the quality of the investment while fostering the value of the company

Cordiant uses a collaborative, active and dynamic approach borrowers or investee companies can be incentivized to improve ESG standards and practices and achieve development outcomes.

  • Access to Technical Service Providers 
  • Specialized Technical Experts by Sectors
  • Increases Investment Monitoring

10.2. 投資する債券の各種類に対してESG統合アプローチをどのように調整するのか説明してください。

社債(金融)

Cordiant’s capacity in terms of ESG Appraisal and Management in being able to control, reduce, and mitigate material risks lies in our underlying procedure of integrating ESG as part of the In-Depth Due Diligence process. The DDQ and ESG form the core of the Investment Memorandums, decision-making process, and the loan agreements. This ensures a robust management system.

Firm-Level ESG Risk Evaluation & Due Diligence (Negative Screen)

A clear understanding of the potential risks and impacts allows Cordiant to assess which IFC Performance Standard applies to a specific business strategy, and thereafter systematically engage in a discussion on the risk-profile of the firm.

As a means to do so, Cordiant has developed sectoral technical guidance documents for an in-depth due diligence that touches upon and aligns with the relevant certifications and principles of sustainable practices on the ground. That way, it is able to consistently and systematically apply best impact and risk management practices across sectors, industries and commodities. This is both time-effective and creates a lot of value for the borrowers, as through our investments, they become aligned with the applicable international standards that are relevant for their operations.

As such, the first due diligence questionnaire, which is based on all SASB, IFC, and IRIS metrics, provides a consistent framework through which to screen the compliance of a potential borrower.

10.3. 補足情報 [任意]

For each potential project, Cordiant’s applies the International IFC Environmental & Social Standards as baseline "Guiding Principles";

PS 1. Assessment and Management of Environmental and Social Risks & Impacts

  • In keeping with our chosen set of Performance Standards, Cordiant has implemented a thorough process for screening investments aimed at achieving E&S Objectives. This process systematically draws from (i) IFC Performance Standards for ESG risk management (ii) Sustainability Accounting Standards Boards (SASB) standards; and (iii) IRIS Metrics managed by the Global Impact Investor Network (GIIN) for Developmental Impact Performance Management. The strategy involves Cordiant proactively engaging with borrowers on ESG matters, through active monitoring of the evolution of ESG risks and compliance with agreed-upon mitigation measures and Action Plans, throughout the life of the investments.

PS 2. Labour and Working Conditions

  • Cordiant strives to uphold international labour standards.  Through carefully screened investments, Cordiant seeks to promote fair treatment, non-discrimination, and equal opportunity for workers.  Cordiant also seeks to promote safe working conditions and to avoid the use of forced labour and the exploitation of vulnerable workers.

PS 3. Resource Efficiency and Pollution Prevention

  • Cordiant seeks to avoid or minimise adverse impacts on the environment by investing in companies and projects that avoid or generate minimal pollution as a result of business operations.  Cordiant seeks to invest in companies that use resources, including energy and water, in a sustainable fashion and whose operations involve a net reduction in greenhouse gas (GHG) emissions compared to the common regional, sector or industry standards observed.

PS 4: Community Health, Safety and Security

  • At deal origination, Cordiant seeks to identify and anticipate community and employee health and safety hazards related to the investee company’s operations and to ensure that the investee company has measures in place to avoid their potential adverse impacts.

PS 5. Land Acquisition and Involuntary Resettlement

  • Cordiant seeks to avoid displacement and minimize adverse social and economic impacts from land acquisition or restrictions on land use. 

PS 6. Biodiversity Conservation and Sustainable Management of Living Natural Resources

  • Cordiant seeks to protect and conserve biodiversity and to identify the potential adverse effects a project may have on ecosystems.  Cordiant seeks to promote sustainable management of natural resources by investing in companies that have adopted practices that respond to conservation needs. 

PS 7. Indigenous Peoples

  • Cordiant strives to ensure that investee companies undertake to anticipate, avoid or minimise the adverse impacts of their operations on communities, including those of indigenous peoples. 

PS 8. Cultural Heritage

  • Cordiant seeks to avoid investing in companies and projects that pose a threat to cultural heritage.  Cordiant endeavours to identify cultural heritage aspects, as they may relate to the project locale, during due diligence.

FI 11. Integration - ESG information in investment processes

11.1. ESG情報が、通常、投資プロセスの一部としてどのように使用されるのか記載してください。

当てはまるものをすべて選択してください
社債(金融)
ESG分析をファンダメンタル分析に組み込んでいる
ESG分析が発行体の内部信用評価を調整するために利用される
ESG分析が予想財務業績および将来キャッシュフロー予測を調整するために利用される
ESG分析が発行体の同業グループと比較したランキングに影響する
発行体のESG債スプレッドおよび同セクター企業に対するその相対価値が、すべてのリスクが織り込まれているか否かを把握するために分析される
各種デュレーション/満期の発行体債券へのESG分析の影響が分析される。
感度分析およびシナリオ分析が、ベースケースとESG組み込み証券評価の差を比較する評価モデルに適用される
ESG分析が、ポートフォリオのウェイティング決定に組み込まれている
会社、セクター、国、通貨が、ESGエクスポージャーの変化およびリスク制限の違反についてモニタリングされる
ESGリスクが大きい証券についてポートフォリオのESGプロファイルが検討され、ベンチマークのESGプロファイルと比較して評価される
その他(具体的に記載してください)

11.2. 補足情報 [任意]


FI 12. Integration - E,S and G issues reviewed

12.1. 組織の統合プロセスでESG問題をどのように検討するか示してください。

E(環境)
S(社会)
G(ガバナンス)
社債(金融)

E(環境)

S(社会)

G(ガバナンス)

12.2. 組織の統合プロセスでE/S/G要因を検討する方法を詳しく説明してください。

社債(金融)

Cordiant’s Environmental and Social Due Diligence framework was modelled after the IFC Performance Standards on Environmental and Social Sustainability, as well as CDC’s Investment Code on ESG.The Due Diligence Questionnaires includes relevant questions to the applicable Performance Standards (to the borrower's activities). Those include;

  • Labour and Working Conditions
  • Resource Efficiency and Pollution Prevention
  • Community Health, Safety and Security
  • Land Acquisition and Involuntary Resettlement
  • Biodiversity Conservation and Sustainable Management of Living Natural Resources
  • Indigenous Peoples
  • Cultural Heritage
  • Business Integrity and Good Corporate Governance

Cordiant follows a set of procedures with respect to the screening of investment opportunities and its engagement with investee companies in matters related to ESG risks.  In order to systematically screen investment opportunities against environmental and social risk criteria. 

These risk ratings determine the necessary level of due diligence into various ESG aspects and help Cordiant decide whether or not to engage a specialist.  Cordiant employs a relevant subset of CDC’s due diligence questions to evaluate, manage and monitor ESG risk, capturing all areas covered by the IFC Performance Standards, as well as the UN Principles for Responsible Investment’s guide for ESG integration in investing. The investment officer will monitor the ESG risks as they evolve over the course of the investment via follow-up conversations with the client and monitoring site visits, as warranted.

Cordiant’s objectives at deal origination include identification and evaluation of environmental and social impact risks relevant to the project.  A clear understanding of the potential risks and impacts allows Cordiant to gauge the likelihood and degree of a negative impact associated with an investee.  A relevant subset of CDC’s ESG due diligence questions are employed to obtain the required information. 

Cordiant’s decision to invest is based on the investee’s ability to anticipate and put in place measures to avoid, mitigate or minimize the negative impacts.  The investee’s willingness to put in place a set of avoidance, mitigation or minimization measures is also assessed and factored into Cordiant’s decision to support its operations with a capital investment. 

Both positive and negative screening is the approach used by Cordiant to discriminate high risk deals. This is done through IFC’s Social and Environmental Categorization, Intentionality, Risk Assessment, and finally the agreed upon Management System and Action Plan for controlling, reducing, and mitigating material risks.

  1. Prioritization and sequencing at the country level assessment: When possible, Cordiant shall make investments in a way that is compatible with the state of development of each country, based on the priorities and stresses of the affected communities.
  2. Ensure compliance with the exclusion list: Ensure all investments comply with any applicable lists of excluded/prohibited activities.
  3. Preliminary due diligence: Consider the country and sector. As part of our preliminary due diligence, Cordiant considers ESG risks in relation to IFC performance standards and requirements for best practices.
  4. Investment opportunities are rigorously assessed on a variety of levels, including;
  5. The identification of firm-level ESG-related value drivers and material ESG-related risks; and identify possible areas for future development and management. This is done through an in-depth process of ESG due diligence and analysis of risks, and that, also via on-site visits.
  6. The findings from on-site visits and outcomes of interviews and discussions with borrower companies and the affected communities form the core of the Due Diligence ESG report, and also set the tone for ongoing engagement and relationship building with the company.
  7. When appropriate, and especially in the agri-business sector, due diligence is also conducted on prospective contractors and operators to ensure appropriate ESG policy is considered.
  8. Monitor and, where necessary, ensure that borrowers’ actions are consistent with the agreed-upon ESG related policies and practices set forth at fund formation;
  9. Build a common understanding with the company’s key ESG aspects to be managed and assess the company’s willingness and capacity to address them.
  10. Build an action plan to address all issues and opportunities, as well as responsibilities and training. This is for means of identifying prospects for improvement, competitiveness, and value creation.
  11. Positive screening and monitoring of Developmental Outcomes

 

 

12.3. 補足情報 [任意]

 

 


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