1. Compliance of the fund with a code of conduct or label
Aloe adheres to the 10 principles of the UN Global Compact initiative. Aloe EF also abides to the Environmental and Social Responsibility Guide and the Corporate Governance Manual of Aloe.
2. Description of main ESG criteria taken into account in the investment decisions
The main criteria reflect the ten principles as defined by the UN Global Compact: Human Rights: Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and Principle 2: make sure that they are not complicit in human rights abuses. Labour: Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; Principle 4: the elimination of all forms of forced and compulsory labour; Principle 5: the effective abolition of child labour; and Principle 6: the elimination of discrimination in respect of employment and occupation. Environment and Social: Principle 7: Businesses should support a precautionary approach to environmental and social challenges; Principle 8: undertake initiatives to promote greater environmental and social responsibility; and Principle 9: encourage the development and diffusion of environmentally and socially friendly technologies and options. Anti-Corruption: Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.
3. General information used for ESG criteria analysis
Aloe uses internal analysis as well as external consultants to evaluate companies on ESG criteria.
4. Description of the methodology of ESG criteria analysis
Aloe seeks to ensure that its financing projects are undertaken in an environmentally and socially responsible manner and in accordance with its engagements vis-à-vis its investors. During appraisal, in accordance with its environmental policy, Aloe reviews materials provided by the target and visits project sites, and as necessary, works with specialists and other interested parties to evaluate environmental and social impact of the target. Likewise, constant monitoring of the environmental, health and social standards is undertaken and reported annually up to the exit of the portfolio company.
5. Process through which the results of this analysis are included in the investment and exit processDifferent Gate documents are prepared by Aloe during the investments and the divestments of portfolio companies. The results of the ESG analysis are included in these Gate documents, which are presented to the Strategic committee of the fund at each due diligence step of the transaction.
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