ESG POLICY

Introduction

Italinvest SA is firmly convinced that the value creation for its stakeholders and in general the development of a sustainable long term strategy for its portfolio companies require the introduction of environmental, social and corporate governance (“ESG”) guidelines into all the phases of its activity (investment, management and divestment stages).

Italinvest SA believes that the incorporation of the principles of sustainability into its ESG policy leads to a more balanced risk-return profile for its investments and a long term path of growth.

In order to pursue a responsible investing strategy, Italinvest SA AIFM’s Board of Directors has approved and implemented an ESG policy for its activity and will also promote ESG policies in all its portfolio companies, working alongside their management teams in order to foster the idea of a responsible and sustainable development of their businesses.

The responsible investing principles, through the adoption of an ESG policy by Italinvest SA and the portfolio companies leads to the introduction of policies, procedures and practices for Italinvest SA as an asset manager and for all the acquired companies.

To testify its commitment, Italinvest SA has adhered to the Principles for Responsible Investment (www.unpri.org) initiative, has appointed an ESG officer within its team, in charge for the promotion and effectiveness of its policy reporting, on a regular basis, to the senior management fostering a similar system for all the portfolio companies.

Environmental Policy

Italinvest SA understands that its activity and the activities performed by its portfolio companies have a footprint on the environment and through its ESG policy has the target to minimize this impact. Italinvest SA is committed to foster an environmentally responsible behavior promoting these efforts also in its portfolio companies.

Italinvest SA has identified its environmental footprint as follows:

  • Use of energy, water, natural resources and, in general, manufactured products;
  • Production of waste;
  • Emission of smoke and other polluting gases contributing to the greenhouse effect;

In order to achieve the target of minimize its environmental footprint, Italinvest SA will:

  • Reduce the production of waste and improve its recycle;
  • Use in a more efficient way energy and natural resources;
  • Increase the use of remote conferencing in order to minimize travel;
  • Minimize emissions of gases responsible for the greenhouse effect;
  • Promote the manufacturing and the use of products derived from natural resources and/or esily recyclable;
  • Promote the use of renewable energy (i.e. solar energy, hydro, etc.) and the implementation of energy efficiency plans;

All these actions will be implemented at Italinvest SA and will be promoted by Italinvest SA in all the companies of its portfolio.

In order to enforce these principles monitor their implementation and respect, Italinvest SA has put in place a reporting system and will publicly report and disclose its environmental performance.

Italinvest SA will assess environmental related aspects during the pre-investment due diligence analysis and will encourage managers and employees of the invested companies.

Social Policy

Italinvest SA considers that social aspects are crucial in the investment activity for the effects that they may have on the different company’s stakeholders. Taking this into account and extending to the portfolio companies, Italinvest SA:

  • Promotes the respect of internationally recognized human rights;
  • Avoids, directly or indirectly, the use of forced labour or child labour;
  • Promotes the elimination of discrimination in respect of employment and occupation;
  • Promotes the equal opportunities and diversity principles;
  • Monitors the health and safety risks related to work activities, with the aim to eliminate or minimize those risks;
  • Promotes a recruiting, developing and retaining system related to human resources able to create a working environment where the contribution of each employee is encouraged, recognized, respected and rewarded;
  • Promotes the support of its employees to charities and similar organizations and institutions.

Italinvest SA considers that principles as transparency, fairness and meritocracy should inspire its activity and shall be promoted also among its portfolio companies; all managers and employees are asked to promote the respect of these principles not only for what concerns its human resources (recruitment, training, development and rewards) but also for what concerns the management of the businesses of its portfolio companies.

Encouraging the social responsibility also at the level of portfolio companies, Italinvest SA will ask them to support local initiatives and organizations which, through their activities, have positive returns for the communities in which they operate.

Governance Policy

Italinvest SA understands that governance issues are crucial for an efficient management of a business; taking this into account, Italinvest SA:

  • Acts honestly, fairly and with respect in the execution of its business;
  • Respects all applicable laws and complies the best international standards relating the private equity industry;
  • Adheres to applicable regulations and cooperate with the financial supervising authorities;
  • Adheres to the proper standards of transparency and accountability in order to reach adequate standards of business ethics;
  • Integrates into its investment criteria a policy relating the long term responsible investing;
  • Implements procedures, controls and reporting in order to better perform its activity, using systems of internal control and risk management covering matters relating environmental, social and ethical topics;
  • Prevents the use of any information derived from its activity for personal financial gain by any employee or director;
  • Identifies the potential conflicts of interests arising during its activity, trying to avoid them or treating them properly in line with the agreements with stakeholders and private equity best practice.

Italinvest SA has incorporated sustainability principles into its activity thanks to its ESG Policy and its responsible investment policy.