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NewAlpha Asset Management

PRI reporting framework 2020

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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.

VENTURE CAPITAL :
An 'exclusion' approach has been established based on formal ESG criteria.
As such, NewAlpha does not invest in companies:
 1) whose business is to manufacture or market key components of landmines and / or cluster bombs, as well as to finance companies whose
 the activity is related to socially sensitive subjects (tobacco, pornography, gambling, etc ...)
 2) found guilty of violations of international standards generally relating to human rights, working conditions, corruption or protection of the environment
 During the selectin process the investment team also focuses on 7 ESG criteria, ranging from sensitivity to carbon-footprint to compensation policies, to evaluates each company's ESG implementation efforts.


 GROWTH EQUITY:
As part of its management policy, an ESG audit will be performed at the time of acquisition and at the time of exit.
The fund will systematically perform an ESG audit before making an investment. This audit will cover environmental, social and governance issues. It will take place, either in Due Diligence phase (before exclusivity), or in exclusivity period (as part of confirmatory audits before signing the acquisition / signing contract).
These ESG audits will be conducted by EcoCert (www.ecocert.fr), which has agreed to develop this new activity of Due Diligence ESG for SMEs, in partnership with NewAlpha.

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.

VENTURE CAPITAL :
At the end of the selection process, a final investment memorandum is presented to the Investment Committee for each targeted companies. Any perceived risk or value opportunity, pertaining to the 7 ESG criteria used by NewAlpha's Venture Capital team to realize their due diligence will be documented and presented to the Committee. The pre-investment ESG audit carried out by EthiFinance.

GROWTH EQUITY:
The pre-investment ESG audit carried out by EcoCert (www.ecocert.fr) will be presented to the Investment Committee before investment. This audit will cover environmental, social and governance issues. It will take place in Due Diligence phase (before exclusivity), or in exclusivity period (as part of confirmatory audits before signing the acquisition / signing contract).

 


PE 07. Encouraging improvements in investees (Private)


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


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