Group policy on responsible lending and investing
On 24 October 2019, the Board of Directors of Mediobanca approved the Group Policy on responsible lending and investing.
The policy is based on the conviction that environmental, social and governance (ESG) criteria are a key factor in pursuing the creation of value in earnings and financial as well as social and environmental terms.
This is why we seek to embrace them in our operating criteria, to consolidate the trust shown in us by investors and markets.
The policy applies to lending activities, investment of own funds and advisory services on investments provided to clients by the Mediobanca Group, pursuing an approach which is based on a combination of:
- Negative screening through use of exclusion criteria, to identify companies involved in specific activities which therefore cannot be taken into consideration for lending, investment and advice processes;
- Positive screening based on precise inclusion criteria to identify companies that are committed to ESG issues.
We have identified certain requisites that must be met. In particular, we exclude parties directly and materially involved in the production and/or sale of weapons that violate fundamental humanitarian principles (such as cluster bombs, anti-personnel mines, nuclear, chemical or bacteriological weapons), and parties which have been definitively convicted for crimes of money-laundering, violation of human rights, and holding, producing and/or distributing child pornography.
Indepth assessments are also carried out of counterparties and/or key issuers and/or companies operating in sectors considered not to be responsible socially or with ESG ratings, and/or companies with disputes pending deemed able to impact on reputational and risk-return profile.
We are is committed to pursuing certain criteria in sectors considered to be at risk, namely: mining, nuclear energy, defence and weapons, and coal-fired electricity.
The principles of reference used in preparing the policy are: the Universal Declaration of Human Rights, the ten principles of the UN Global Compact, the PRI - Principles for Responsible Investment, and the UN Sustainable Development Goals (SDGs).
RAM Active Investments too aims to invest responsibly in executing its investment strategies. To this end it has adopted a Policy for responsible investing, which sets out the investment beliefs, guidelines, and the approach to consider and incorporate corporate governance, environmental, and social factors into its investment process and strategies, covering both equities and fixed income.
RAM has also adopted a Policy on climate change, to tackle climate change risks through investment decisions and direct or collaborative engagements.
RAM is committed to:
- Continuously developing its capacity to assess the risks and opportunities presented by climate change and climate policy to its investment portfolios, and integrating this insight, when relevant, into its investment processes;
- Measuring and reporting the carbon footprint of its investment products, while working towards lowering carbon emission intensity to a level below that of the respective benchmark;
- Engaging with screened portfolio companies to ensure that they are disclosing and minimizing climate risks while taking into consideration the opportunities presented by climate change and climate policy in their corporate strategies;
- Reducing its own carbon footprint by cutting energy and water consumption.
Cairn Capital too has recently adopted an ESG policy based on negative, top-down screening to exclude companies operating in certain sectors, combined with a bottom-up approach to evaluating investments based on ESG criteria specific to each asset