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Amethis Luxembourg S.à.r.l

PRI reporting framework 2020

You are in Direct – Private Equity » Pre-investment (selection)

Pre-investment (selection)

PE 05. Incorporating ESG issues when selecting investments

05.1. During due-diligence indicate if your organisation typically incorporates ESG issues when selecting private equity investments.

05.2. Describe your organisation`s approach to incorporating ESG issues in private equity investment selection.

1. Prior to first investment committee:

  • Ensure compliance with exclusion list
  • Risk universe definition of the project
  • Determine inherent risk exposure of the project to define its risk categorization

2. After first investment committee, external E&S due diligence to:

  • Evaluate level of compliance of the company
  • Determine E&S residual risk
  • Assess potential existing opportunities

3. During closing stage:

- E&S Action Plan design and negotiation, for which actions will aim either at:

  • Mitigate high residual risks
  • Achieve compliance
  • Exploit a compelling opportunity

- Monitoring plan composed with:

  • Use of external consultant
  • Monitoring calls
  • On-site visits

- E&S covenants: Covenants related to the fulfilment of the E&S action plan will be included in shareholder agreements. Failure to complete actions aiming either at mitigating high residual risks or achieving compliance will trigger a breach in the shareholder agreements and allow the investor to exit its investment if needed

05.3. Additional information. [Optional]

PE 06. Types of ESG information considered in investment selection

06.1. Indicate what type of ESG information your organisation typically considers during your private equity investment selection process.

06.2. Describe how this information is reported to, considered and documented by the Investment Committee or similar.

The Invesment Note presented to the Investment Committee has a dedicated section where the initial ESG risks and opportunities, the material risks are mentioned and the Due Diligence findings detailed. If available the ESAP is enclosed to the IC Note.

PE 07. Encouraging improvements in investees (Private)

PE 08. ESG issues impact in selection process (Private)