Responsible Investing
Integrated Approach to Responsible Investing
Investindustrial integrates sustainability across the investment cycle, from pre-investment to realisation, in order to maximise stakeholder value by identifying and addressing material risks and opportunities. This approach is guided by Investindustrial's Responsible Investment and ESG Policies. First issued in 2009 and last updated in 2024, they reflect the inclusion of a sustainable investment and EU Sustainable Taxonomy assessment in the Firm’s due diligence review and an updated list of excluded or sensitive sectors. They also incorporate positive industry screening to support the Firm's 2030 sustainability strategy ambitions. Investindustrial’s approach reflects its commitment to the UN's Principles for Responsible Investment (PRI), having been a signatory since 2009.
The Sustainability team works with the Investment advisory team from pre-investment due diligence to exit preparation and outcomes to assess the impact of sustainability, climate, governance, supply chain, and corporate culture initiatives on portfolio companies' value, considering revenue, cost, risk, and reputation factors.
Post investment, the Sustainability team supports portfolio companies in adopting Investindustrial’s sustainability framework, which is integrated into each company's strategy over three to five years, depending on their sustainability maturity and business needs. This approach is an integral way of ‘Building Better Companies.’
Assessing Impact
All portfolio companies report quarterly and annually on key sustainability KPIs, which are monitored through dashboards and quarterly calls to track performance and progress.
Sustainability initiatives are measured by both intangible outcomes, like improved company culture and staff retention, and tangible metrics, such as cost reduction, liabilities de-risking, and reduced cost of capital through sustainability-linked loans. These initiatives are tied to specific business plans with ROI projections, while their impact on revenue growth and margin contribution can be tracked through traditional financial measures.