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ESG in the investment activity

ESG criteria permeates throughout all of Altamar’s activities and departments, and thus its strategy is focused on incorporating them into the investment processes given that asset management is its core activity and the one through which the Firm can generate the greatest value.

 

Principles for Responsible Investment (PRI)

 

The disclosure of sustainable and responsible investment (SRI) initiatives at Altamar is an essential element to reinforce the trust of its investors. As a signatory to the United Nations Principles for Responsible Investment (PRI) since 2016, Altamar provides its investors with clear and transparent information on its SRI and ESG practices and policies through its PRI Annual Report. The ESG Team analyzes the results obtained in the PRI Assessment   on an annual basis and identifies the actions required to improve and consolidate results. These actions are included in the Annual ESG Action Plan, approved by the ESG Committee.

 

Engagement with GPs

 

Selection

 

Engagement with the managers of the underlying funds in which Altamar invests (General Partners – GPs) is paramount, as it enables the firm to gain a comprehensive understanding of the commitment and practices of its GPs and thus monitor their progress and evolution.

 

As part of the Due Diligence process, Altamar reinforces this engagement by requesting its GPs to report periodically on its SRI policies by completing its ESG Due Diligence Checklist. This questionnaire prepared by the ESG team consists of a series of questions on the following matters: commitment or engagement with ESG and SRI, measurement and monitoring of ESG (through KPIs, etc.) and integration of ESG criteria into the investment process.

 

The commitment of our GPs is measured through an internal score card based on the checklist questions which are weighted so that each GP is classified in one of the four categories: Outstanding, Good, Compliant and Weak.

 

Furthermore, an Exclusion Policy has been introduced and specifies activities or sectors in which Altamar will not make direct investments, co-investments, or participate in secondary market investments with exposure to companies that participate in the restricted activities. As for indirect investments, Altamar requests a formal declaration through the ESG clause in Side Letters in line with this policy to confirm that GPs will not invest in these sectors.

 

Formalization

 

At the time of formalizing an investment, and after reviewing the regulatory aspects concerning ESG in the legal documents, the manager is asked to incorporate a series of clauses in the Side Letters that formally cover the main commitments that Altamar wishes to obtain from the GP in terms of ESG.

 

Monitoring

 

As part of the Annual ESG Action Plan, the ESG Due Diligence Checklist is updated based on the conclusions drawn from the internal score card, thus enhancing the engagement with the underlying GPs and promoting ESG practices across the industry.

 

Additionally, the members of the investment teams who attend the GPs’ Annual General Meetings, gather information on ESG matters discussed during these events. This way, the degree of commitment of each GP to SRI is verified against the answers reported on the ESG DD Checklist, and their performance is monitored each year.

 

Finally, as part of the Side Letter, Altamar asks fund/company managers for regular information on the incorporation of ESG criteria into their investment policies throughout the life of the investment.

In terms of the average scoring, our GPs have been classified as GOOD.

 

In June 2020, 99% of our GPs had answered the ESG DD Checklist reporting their 2019 activity.

Imagen ING

Maximum rating achieved in all PRI Transparency Report categories: 

 

* Strategy & Governance
* Private Equity
* Infrastructure
* Fixed Income
* Real Estate

Altamar SRI in figures*
0
%
AUMs with SRI policies
0
%
AUMs who monitor the evolution of ESG
0
%
AUMs with dedicated ESG teams
0
%
AUMs with exclusion policies

*data as of  June 2020