For the selection process of external managers, we consider one of the main factors the analysis of governance, which includes the existence of a Restricted List of institutions (internal) and the request that a Due Dilingence questionnaire be answered.
In this questionnaire, there are some questions related to ESG aspects, such as: how external managers conduct their ESG process (if they have one), whether there are engagement actions, how they include ESG aspects in their internal analysis, etc. The risk analysis has an ESG risk policy (model), where a score (ranking) is attributed to the issuer / manager.
In addition, Infraprev conducts physical diligences in which the decision-making processes of investments, the risks analysis, the governance aspects and the technological structure are the main factors for the selection.
In the process of appointment, the contracts are analyzed considering as to always comply with internal contracting rules and adherence to the Investment Policy that includes ESG aspects.
In the monitoring process, Infraprev follows through news, reports sent by the manager, monthly calls with the participation of the manager, where the qualitative and quantitative issues that involve the investment are further explored. In situations where attention points are identified, risk, compliance and legal areas are used to subsidize decision making via the investment committee.