We are convinced that ESG considerations can pose challenges to the sustainability of an investment management company and to the performance of the investment fund under consideration. Therefore, we systematically incorporate relevant ESG factors in our investment process.
We address ESG issues with our investment partners during the initial due diligence process and on a regular basis. We engage directly with our partners and encourage improvements of current practices. In 2019, our CEO sent a formal letter to all of our external fund managers (our "Engagement letter") emphasizing the importance of Responsible Investing for Pictet Alternative Advisors and our clients and encouraging them to actively address this topic.
We have developed a dedicated ESG questionnaire that covers our investment partners’ engagement to ESG, the level of ESG integration in their processes and operations as well as reporting and transparency for investors. Using an internal scoring methodology, we rank our investments with regards to their level of ESG integration.
We seek to add an ESG clause in side-letters before going forward with an investment (applicable to Private Equity and Property).