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PRI reporting framework 2020

You are in Strategy and Governance » Outsourcing to fiduciary managers and investment consultants

Outsourcing to fiduciary managers and investment consultants

SG 12. Role of investment consultants/fiduciary managers

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

12.1. Indicate whether your organisation uses investment consultants.

12.4. Indicate whether you use investment consultants for any the following services. Describe the responsible investment components of these services.

Describe how responsible investment is incorporated

          When there is risks that we feel uncomfortable with or when necessary. 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.

12.7. Additional information [Optional].

Risk Exposure & Consultants: Cordiant’s Use of External Expertise

E&S Review & Procedures

As part of the E&S due diligence (“ESDD”), since Cordiant will retain the services of an experienced E&S consulting firm, familiar with the Applicable IFC & ISO E&S Standards

An E&S consultant will be used for all high-risk projects and/or any projects triggering IFC PS 5-8, and will typically be used for projects which are medium-high risk or where Cordiant does not have appropriate in-house expertise.

The following procedures apply as well:

If applicable (i.e. if the E&S Due Diligence uncovers gaps against the IFC Performance Standards), an E&S corrective action plan detailing mitigation measures or acceptable deviations from policy.
If applicable, a monitoring program and timetable, which can be included in the corrective action plan;
If relevant, institutional arrangements and capacity building for the portfolio company to comply with, and strengthen its management of, E&S policies.

Classification & Risk Exposure

Confirmation of the classification of the E&S risk presented by the portfolio company into one of the categories – A, B or C, depending on the nature and magnitude of the E&S impacts.

Category A investments  will require an ESDD based on the IFC Performance Standards, and may require an E&S Impact Assessment (“ESIA”) if applicable. (i.e. for greenfield / expansion projects). Th ESIA will examine the company operations' potential positive and negative impacts, compares them with those of feasible alternatives, and recommends any measures needed to prevent, minimize, mitigate, or compensate for adverse impacts and improve performance.

Legal Agreements

In all circumstances, as part of the legal drafting process, the Investment Officer and the E&S Officer will ensure that relevant legal language reflects the findings of the E&S due diligence as well as the corrective action plan, and thus- to define the organizational capacity and responsibilities of the investee company with respect to any corrective measures that need to be undertaken. They will also ensure that the investee company commits to sound E&S practices by signing an undertaking to that effect, either as part of the investment agreements or as a stand-alone undertaking