Our commitments

A sustainability risk is an environmental, social, or governance event or situation that, if it occurs, could significantly affect the value of an investment.

It should not be confused with the concept of negative impact: sustainability risk concerns the effect of the world on our investments, while negative impact concerns the effect of our investments on the world. We address both, with the latter being the subject of a separate disclosure.

Given our sector, the risks we prioritize are:

• Pressure on healthcare resources, absenteeism, and quality of life at work;
• The quality and safety of healthcare and healthcare products;
• Governance, ethics, and the prevention of conflicts of interest;
• Energy and water consumption, healthcare waste management, and carbon footprint;
• Changes in healthcare-specific regulatory requirements.

Before investing. We first verify that the target company is not engaged in any activities on our exclusion list. We then systematically assess its ESG risks using a checklist that covers material issues and incorporates an analysis of climate risks and opportunities. When high risks are identified, ESG due diligence may be conducted by an independent third party. The findings are included in the information memorandum and presented to our investment committee before any decision is made. A contentious issue that cannot be resolved may lead us to forgo the investment.

During the holding period. We work with each company to define an ESG roadmap covering, at a minimum, ethics and governance, human resources, and the environment. Each year, we collect the company’s ESG data—including the 14 mandatory indicators and the 2 optional indicators on major adverse impacts—on a dedicated platform; an independent consultant verifies the consistency of this data during an interview with each company. ESG topics are included on the agenda of a governance body at least once a year. When a risk materializes, mitigation measures are added to the roadmap, and their implementation is monitored.

At exit. We assess the company’s ESG progress and document this assessment in a dedicated report.

We do not invest in companies operating in a country subject to international sanctions, as identified by the EU Sanctions Map, or in a country with high ESG risks, as identified by the Sustainalytics Country Risk Rating.

We also do not invest in the sectors listed in our ESG Policy.