Kreaxi is very sensitive to environmental, social and governance quality objectives, and has implemented a process to systematically take ESG criteria into account in the investment policies of its latest funds.
This information will be updated on an annual basis or in the event of a change in the applicable ESG policy within Kreaxi.
1/ Kreaxi: a Responsible Investor
Kreaxi is a signatory of the Charter of Investor Commitments for Growth (France Invest). In this respect, we are committed, beyond the rules already set out in the profession’s code of ethics, to the regulatory framework defined by the Autorité des Marchés Financiers, as well as within the limits of our effective powers as a shareholder and our fiduciary responsibility towards capital providers, to the following four objectives.
The following objectives are based on the principles of France Invest’s Charter of Investor Commitments for Growth, updated in January 2018, and adapted to KREAXI’s activity, and on which KREAXI bases its ESG policy.
a. Economic Impacts
KREAXI recognizes that its investment choices and the exercise of its responsibility as a shareholder contribute to shaping the economic fabric and its development. That’s why Kreaxi is committed:
- to invest the capital entrusted to us to actively finance the creation, growth and long-term development of businesses
- to act as an attentive and active minority partner, alongside entrepreneurs or teams fully responsible for the management of their business
- to support ambitious development projects by launching new activities, R&D and innovation, industrial or commercial investment, international development or external growth
- to support the implementation by enterprises of the best professional practices in their sector in the field of management and control of their development
b. Social and human impacts
Kreaxi is convinced that the overall performance of the company depends on the careful management of human capital and is committed to the following:
- to promote constructive social dialogue within companies while respecting the prerogatives of each party, management and employee representatives
- to support the development of activities that are profitable in the long term and that allow the creation or maintenance of jobs
- to support the training efforts undertaken by enterprises
- to promote the sharing of value creation by involving employees in the fruits of the company’s performance through profit-sharing or incentive schemes, or through broad employee access to capital or any capital gains
c. Environmental Impacts
Respecting the competitiveness of the companies we support, and recognizing that all economic activity has an impact on natural capital, Kreaxi takes environmental issues into account and is committed to :
- when an environmental risk is identified, to ask for an audit and to encourage the company to prevent any environmental damage thus identified
- to promote the establishment of good practice in the protection of ecosystems and biodiversity
- to guide long-term business development strategies so that they integrate the issues of dependence on natural resources, energy consumption and waste production
d. Impacts of good governance
Kreaxi has a long history of investing alongside entrepreneurs in non-listed companies, and is implementing modern governance systems that contribute to the success and sustainability of the companies we support. That’s why Kreaxi is committed:
- to ensure compliance with laws, conventions and regulations in the companies we support
- to act for the prevention of corruption and money laundering in our spheres of control
- to act for the proper functioning of the various corporate governance bodies of companies, in which each of them, including management, independent directors and shareholders, will fully exercise their role and responsibilities
- to promote transparency in our activity as an investor, in particular by measuring and communicating the economic and social impact of our investments
- to promote gender balance and equity within the company
2/ Regulatory Information
KREAXI is committed to adopting an approach that respects ESG criteria within the management company and the companies held in its portfolios, the main features of which are described below :
- Presentation of the portfolio management company’s general approach to the consideration of social, environmental and governance quality criteria in its investment policy and, where applicable, risk management policy
KREAXI’s ESG approach is described in its procedure book and in an ESG CHARTER, updated in 2018 and signed by all KREAXI employees (available on request from the management companies).
Generally speaking, this approach is based on the following responsible investment approaches:
- a responsible thematic approach: the funds managed by KREAXI target investments in companies or projects in the industrial or service sectors that address major economic, social, environmental, energy, public health and environmental issues, in the context of activities that are in line with good morals, public order, laws, regulations and ethics.
- an exclusionary approach: the funds managed by KREAXI follow an ethical logic by excluding from their investment policy companies and projects in the following areas: arms trade, gambling and betting industry, tobacco and alcohol industry and human cloning.
The funds managed by KREAXI also act in accordance with the investment legislation applicable to them.
- the integration of ESG criteria in the analysis of investment dossiers:
An internal audit is carried out based on a questionnaire allowing an evaluation of the investments in terms of impact. This questionnaire is distributed to target companies at the investment stage and then each year to portfolio companies as part of our annual ESG campaign. Environmental and social issues are also taken into account from a risk assessment perspective during the due diligence phase, during which a due diligence on social aspects is generally carried out and a due diligence on environmental aspects is carried out based on the results of the questionnaire.
For each company in the portfolio, a summary ESG evaluation grid is also updated annually by the person responsible for monitoring the company.
These elements make it possible to assess the company’s progress on ESG issues, to highlight areas for improvement, and to reflect on how KREAXI can promote these issues (e.g. by raising these issues at the Board of Directors or through shareholder recommendations).
- Content, frequency and means used by the entity or asset management company to inform its clients :
Each year a summary of the ESG actions carried out is included in the annual management reports of the Funds concerned and sent to subscribers.
- Possible adhesion of the entity, or of some ofthe collective investment undertakings mentioned in 1° of I, to a charter, a code, an initiative or obtaining a label:
KREAXI is a signatory of the following initiatives:
- Charter of Investor Commitments for Growth (France Invest), updated in January 2018
- the Principles for Responsible Investment (PRI) since March 2014,
KREAXI has made the following commitments:
- Member of the ESG Committee of France Invest,
- Member LPFT , SEPL (Lyon’s economic and political company)
- Member of Unicer
- Signatory of the SISTA Charter
- General description of the consideration of ESG risks in risk procedures :
KREAXI establishes, implements and maintains an appropriate and documented risk management policy that identifies the risks to which the Funds it manages are exposed or could be exposed. KREAXI has prepared for each fund a risk mapping including those associated with social, environmental and governance quality criteria and the exposure of its activities to these risks in accordance with Decree no. 2015-1850 of 29 December 2015 pursuant to Article L. 533-22-1 of the Monetary and Financial Code.
- Additional information on the assets managed by KREAXI :
KREAXI does not have any funds outstanding in excess of 500 MEUR.