Sustainability

The approach to responsible investment

A responsible approach to investments is an essential part of Gardant Investor SGR’s positioning in the investment sector and the management of non-performing loan portfolios. 

Gardant Investor SGR has defined an investment strategy with the aim of integrating ESG factors throughout the entire investment lifecycle (from the origination and initial evaluation phases to the monitoring of the investment), in the belief that this can generate added value for all parties involved in the sector in which it operates.

As part of its commitment to sustainability, Gardant SGR has also adopted a dedicated SRI Policy and internal regulations to integrate ESG factors into both its investment processes and the operations of the SGR. 

The following refers to the “standard” investment activity of the SGR and does not reflect all the specificities of the investment process of sustainable funds classified as ex art. 8 pursuant to Regulation (EU) 2019/2088. Discover more about “The Sustainable Funds of the SGR”

INTEGRATION OF ESG FACTORS IN THE INVESTMENT STRATEGY

In the initial phase of selecting investments for each type of FIA managed, the SGR identifies a series of elements that bind the investment strategy, starting with a negative screening activity, i.e., the prior exclusion from the investable universe of entities and/or companies involved in sectors and/or activities considered ethically controversial. In the subsequent phases of the investment process, the SGR commits to integrating ESG factors with a tailored approach based on the specificities of the individual FIAs managed and the individual investment operations.

Portfolios of NPE/UTP

The responsible approach to investing in portfolios of non-performing loans is implemented through the adoption of the Group’s Code of Conduct, applied and observed by all subsidiaries and their possible sub-delegates, who are responsible for managing the portfolios. The SGR applies this Code through the operations of dedicated servicers who, whether they belong to the Group or not, adopt the following principles:

  • align with the principles and best practices promulgated by the National Union for Credit Protection Companies (UNIREC);
  • adopt and promote a management approach based on the principles of transparency and fairness of the actions taken;
  • favor sustainable out-of-court agreements over judicial ones or mere enforcement of the guarantee, in order to support recovery objectives while also maintaining favorable conditions for the debtor’s recovery;
  • promote the application of negotiation standards that also take into account responsible and reliable behavior by debtors, as a relevant factor in evaluating settlement agreements, alongside economic and financial parameters.

Regarding UTP portfolios or individual positions, the SGR’s sustainable investment approach also includes, where possible:

  • promoting management strategies aimed at restoring sustainable solvency conditions and continuity of productive activities, as well as returning to the category of performing loans;
  • integrating ESG factors into interventions and revaluation and requalification strategies.

Real Estate Assets

In relation to real estate funds, the SGR commits, respectively in the selection and management phase of the investment, to:

  • conduct technical-environmental due diligence to identify relevant ESG factors for the investment operation, assess the risk and environmental performance of the properties, and define actions to improve their performance, as well as any requalification and revaluation interventions, also involving the owning/management companies of the leased properties;
  • during the holding period, the SGR addresses any deficiencies identified during the preliminary evaluation phase to manage them, including, if appropriate, contractual clauses in the lease agreements associated with achieving specific ESG performance objectives. Periodic checks are also carried out to ensure compliance with the requirements defined during the investment phase in terms of actions to improve the environmental performance of the properties and/or requalification and revaluation interventions.

Direct Lending

Regarding the investment strategy for funds whose investment primarily consists of providing secured real estate loans, the SGR aims to integrate ESG factors as follows:

  • during the investment selection phase, it conducts an analysis to evaluate the ESG profile and performance of the investments, in order to identify potential risks and opportunities related to the environmental, social, and governance impact of the potential operation. The results of the evaluation are among the elements considered by the SGR for the provision of financing;
  • during the holding period of the investments, based on the results of the initial analyses, the SGR monitors the beneficiary and the financed projects to promote continuous improvement of ESG performance and the achievement of any shared sustainability goals.

Additionally, where appropriate, the SGR commits to promoting “sustainable” projects, such as modernization or real estate development, through the application of incentive mechanisms or the provision of specialized financing. In these cases, the SGR may consider linking the conditions of the financing provided for the implementation of these projects to the achievement of ESG objectives.