- SELECTION NewAlpha's fund selection process includes an extensive due diligence (questionnaires and on-site visit). This due diligence includes a segment dedicated to the application of ESG criteria and SRI logic implementation efforts. This part was developed with the help of La Française (NewAlpha's main shareholder and active member of the PRI), as well as some of the tools made available by the PRI (Hedge Fund DDQ).
- APPOINTMENT As of today, NewAlpha has not implemented responsible investment considerations in the structuring of its investment deals with investment managers. However, NewAlpha is currently finalizing a partnership with EthiFinance (an extra-financial analysis and consulting agency specializing in the management of risks and opportunities related to sustainable development - https://www.ethifinance.com/) to create an ESG scoring chart for each investment firm going through NewAlpha's selection process. In the event of the selection process being completed, each investment firm will contractually commit to maintaining and improving this scoring.
- MONITORING NewAlpha currently monitors responsible investment considerations for over 25% of its externally managed AUM, through the calculation of the EcoSocial Footprint of its Emergence Actions fund, via a partnership with La Financière Responsable, as well as the calculation of the Carbon Footprint of its Emergence Actions II fund, with La Française Inflection Point proprietary methodology. With its planned partnership with EthiFinance (see above), NewAlpha will start monitoring between 50 and 80% of its total AUM (externally and internally managed) in the coming year
NewAlpha implements a responsible investment approach.
This approach is materialized at different stages of the investment process:
- Integration of ESG criteria in the selection of both management companies and funds;
- Raising the awareness of accelerated companies and assisting them in implementing an ESG action plan;
- Production of extra-financial reporting on selected funds;
- Evaluating the impact of the investments made on the progress of the selected managers on ESG issues using key measurable indicators.
This approach has been in place for several years and tends to be reinforced each year. Some key dates :
- 2016: inclusion of ESG questions in proprietary due diligence questionnaires;
- 2017: signature of the PRIs and first extra-financial reporting on the EMERGENCE SICAV with the Eco Social Footprint in cooperation with La Financière Responsable (company accelerated by Emergence).
- 2018: publication of a CSR charter.