What are environmental, social and governance criteria?
These criteria fall within the definition of Socialy Responsible Investor (SRI). SRI implies to apply sustainable development principles to investment and to take it into account in addition to usual financial criteria. Socialy responsible investment can take different forms and be based on several factors like positive selection, exclusion, or both, while maintaining a constant interaction with third parties.
SRI criteria include three dimensions:
- an environmental dimension: company activities’ direct or indirect impacts on the environment ;
- a social dimension: direct or indirect impacts on third parties referring to universal values (human rights, international work laws, corruption, etc…) ;
- a governmental dimension: process, regulations and laws that have an impact on the way the company is managed and also referring to relationships the Management maintains with shareholders and Boards.
Why such a policy?
Article L 533-22-1 of « Code Monétaire et Financier » states that Management Companies must be able to provide Alternative Investment Funds’ (AIF) investors with information about the way they deal with SRI matters.
Please find below the way Trocadero Capital Partners fulfills this duty.
What matters to Trocadero Capital Partners
Beyond financial performance, which is Trocadero Capital Partners’ main objective, we do our best to be true with SRI values by integrating it into our investment policies. These extra-financial criteria often rely on intangible elements for the SMEs that we accompany. To do so, Trocadero Capital Partners collects as much information as possible about SMEs’ SRI policies during investment process. As a matter of fact, SRI practices can sometimes bring better performance in the long term.
As a consequence of its SRI practices, Trocadero Capital Partners identified several sectors/industries which do not fit with its values (weapons, human cloning, tobacco, alcohol, and other unlawful activies) and do not invest in such businesses.