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.
Cordiant explicitly integrates ESG considerations into the investment process. Additionally, critical considerations such as gender are factored into our ESG Risk & Impact Management System, which supports and aligns with our robust investment value-creation processes. ESG risk management is integrated throughout the investment process and is viewed as an important risk mitigant, ensuring that companies in which Cordiant invests comply with appropriate laws and policies.
When looking to make an investment, Cordiant seeks to develop a plan allowing the company to secure meaningful, measurable, and independently verifiable development outcomes. Focus here can highlight practices that need to be improved even as it reduces investment risk. Cordiant employs an effective and transparent evaluation methodology and risk analysis process to identify companies with a sustainable competitive advantage.
We analyse ESG using internationally recognised environmental, social, and governance standards. The present Responsible Investment Policy & Technical Framework integrates our ESG risk and impact management process. It was drafted after extensive interactions with standard setters in the areas of ESG and impact investing, including Commonwealth Development Corporation (CDC), the European Investment Bank, the International Finance Corporation (IFC), Inter-American Investment Corporation (IIC), MIGA, the United States Agency for International Development (USAID), the United States Department of Agriculture (USDA), and the Overseas Private Investment Corporation (OPIC).