Synergo Capital SGR S.p.A. (“Synergo Capital”) supports the spreading of a culture of sustainability and the promotion of a responsible approach to investments, with particular reference to environmental, social and governance (ESG) aspects, in compliance with the objectives stated in Regulation (EU) 2019/2088.
Synergo Capital subscribed the PRI (“Principles for Responsible Investment“) on November 13th, 2020 and adopted an ESG policy.
As part of its investment process, Synergo Capital assesses sustainability risks in each of its investments, evaluating and measuring sustainability aspects in target companies, monitors compliance with ESG parameters and actively intervenes to favor the improvement of the target companies ESG performance.
Art. 3 Regulation (EU) 2019/2088 – Transparency of sustainability risk policies
Synergo Capital actively, continuously and systematically promotes and applies an ESG policy aimed at measuring sustainability and promoting transparency of its investments.
As a member of the PRI, Synergo Capital follows the principles contained in its ESG policy and adopts screening methodologies and tools to perspective targets and portfolio companies over the lifetime of the investment.
Synergo Capital’s commitment in addressing ESG issues is shown during the:
- Investment phase through the execution of dedicated assessments consisting of:
- a negative screening aimed at the exclusion of sectors and / or targets that do not meet certain minimum ESG criteria;
- an in-depth ESG due diligence activity aimed at identifying industry specific ESG risks, and opportunities for performance improvement;
- Monitoring phase through:
- A constant dialogue with the target management aimed, among other things, at defining and implementing an ESG action plan;
- A constant monitoring of the target ESG performance, based on specific indicators defined during the investment phase;
- Exit phase by sharing the improvements obtained in terms of ESG performance with potential investors.
Synergo Capital has identified an internal officer, supported by an external advisor, with a formal oversight and accountability for responsible investment
Art.4 Regulation (EU) 2019/2088 – Transparency of adverse sustainability impacts at entity level
At the moment, Synergo Capital does not take into consideration the negative effects of investment decisions on sustainability factors, and, as soon as the regulatory framework will be completed it will provide exhaustive indications on the operating procedures that will be adopted in order to mitigate sustainability risks.
Art.5 Regulation (EU) 2019/2088 – Transparency of remuneration policies in relation to the integration of sustainability risks
In compliance with the AIFM regulation, as a sub-threshold asset manager Synergo Capital is not required to draft a remuneration policy.