Publication of sustainability information

Resources dedicated to ESG and sustainability risk

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Human means

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INCO Ventures is a management company that only manages funds dedicated to social and/or environmental impact. The companies financed by the funds managed by INCO Ventures put the search for impact at the heart of their strategy.

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Therefore, all team members are made aware of and trained in ESG and sustainability issues. Each member of the investment team is experienced in impact. Each due diligence carried out on all the AIFs managed by Inco Ventures includes a complete analysis of the company from the SRI and impact angles (Inco Ratings).

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In addition, for the staff involved in the management or control of financial products aimed at sustainable investment, the collective and individual assessments and objectives will include qualitative and quantitative elements related to the achievement or failure of the sustainable investment objectives set.

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Technical means

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With sustainability and ESG at the heart of the investment thesis of the FIAs managed by Inco Ventures, Inco Ventures has developed its own SRI and impact filter, INCO Ratings (see dedicated paragraph).

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Portfolio construction & management 

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The results of the analyses carried out according to the methodology described above are taken into account in investment decisions and the management policy of the managed/advised portfolios.

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Monitoring of relevant extra-financial risk indicators

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Once the Inco Ratings analysis has been carried out on the target company during due diligence, in collaboration with the project leader(s), an “impact roadmap” is established at the time of closing the investment.

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Impact objectives are set with the company on 5 to 10 indicators, the most significant about the social or environmental needs addressed.

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The setting of these objectives covers a 5-year horizon.

A methodology for collecting the corresponding data is also established.

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The impact roadmaps are integrated or annexed to the financing contract that binds the AIF to the participation.

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The monitoring of achievements and results in terms of impact over the duration of the investment is then carried out by comparing the achievements to this roadmap.

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The achievement of impact objectives is monitored by collecting information on an annual basis, and by at least one annual meeting with the project leader(s) of the financed company, for the duration of the financing. 

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During this meeting, the management team works with the project owner(s) to analyze any discrepancies between impact objectives and actual results. Based on the information provided, an “annual impact report” is drawn up for each company in the portfolio.

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If the company remains in the portfolio beyond the 5-year horizon, new Impact Objectives are set until it is sold.

ESG and sustainability performance of portfolio assets is monitored and communicated to investors via ad hoc reports or meetings.

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As part of this monitoring, Inco Ventures has developed tools for aggregating the impact achievements of the companies making up a fund's portfolio; monitoring the achievement of impact objectives ultimately enables us to draw up an annual social and environmental impact report for each FIA, with a classification by SDG (Sustainable Development Goals developed by the UN).

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• Climate change risk is integrated into the Inco Ratings analysis and is analyzed for all files reviewed. If applicable, in-depth analyses can be carried out to determine the extent of the company's exposure to physical, transitional, and liability risks. 

• Short, medium, or long-term physical risks, such as the risk of pollution or the loss of biodiversity.

• Transition risks linked to energy or climate change regulations.

• Liability risks are linked to activities that present a risk of litigation.

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Action plans will then be defined during the holding phase to determine the materiality of the theme.

Climate change risk is included in the Inco Ratings analysis and is the subject of an analysis for all files studied. If applicable, in-depth analyses can be carried out to determine the extent of the company's exposure to physical, transitional, and liability risks. 

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• Short-, medium- or long-term physical risks. For example: risk of pollution, loss of biodiversity.

• Transition risks linked to energy or climate change regulations.

• Liability risks are linked to activities presenting a risk of litigation.

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Action plans will then be defined during the holding phase to determine the materiality of the theme.