Crédit Financial Group's Commitment to Responsible Investing

CFG believes the management of environmental, social and governance (ESG) issues is a critical part of ensuring the long-term success of any business today. Building better businesses through effective ownership and management benefits all stakeholders, from employees to customers, suppliers and shareholders, and the wider community at large by creating jobs, supporting local communities and securing the future of millions of people around the world. As careful stewards of capital, CFG is committed to operating with the upmost integrity and working hard to manage ESG factors from our due diligence processes, during the management of our investments and in ongoing support.

We believe our medium- to long-term ownership model, our operational capabilities and our commitment to building better businesses enable us to be a responsible custodian of the businesses in which we invest.

Our approach towards ESG is embedded in all aspects of our private equity investment process from the original investment selection, to the subsequent value creation and ultimately, the exit from the investment with a focus on ensuring a sustainable long-term ownership structure into the future.

CFG has adopted a comprehensive ESG Policy, describing what is expected of CFG as an investment manager as well as what is expected from portfolio companies. Our ESG policy details how CFG is committed to supporting ethical behaviours in all of its activities together with investing in and working with the local communities in which we operate.

CFG has been a signatory of the Principles for Responsible Investment (PRI) since 2012 and reports annually on its progress in integrating ESG in its investment processes against the six principles. It is committed to implementing its six principles with a view to aligning its investment management and advisory activities with the interests of wider stakeholders. CFG also takes into account the ten principles of the UN Global Compact in its due diligence of target companies before CFG funds invest.

CFG's Investment Approach


Prior to making any investment, CFG's private equity business assesses the sustainability of each company, documenting any material findings in our investment papers. CFG has developed a comprehensive online screening and information tool, and an early-stage ESG red flag checklist.

Due Diligence Process

During the due diligence process, CFG's private equity teams review potential investments for ESG related risks and opportunities. Any final investment recommendation requires an ESG review to be completed that identifies any issues highlighted in due diligence including those related to environmental, climate change, labour relations, human rights, community responsibilities and anti-bribery and corruption. CFG has developed a comprehensive online ESG screening and information tool, and an early-stage red flag checklist to facilitate this assessment process. Furthermore, each deal team will typically work with a range of parties including CFG's Operations team, CFG's Legal and Compliance teams, and specialist third-party ESG consultants.

Monitoring and Partnering with Portfolio Companies

Immediately after the acquisition of a portfolio company, the private equity teams work to ensure it operates from a strong sustainable platform to help maximise the success of the investment. CFG has identified a set of standards that all portfolio companies are expected to consistently meet. These standards range from reporting and financial controls to environmental matters, health and safety and cyber security. CFG has adopted a post-closing review which must be presented and reviewed by the CFG Portfolio Committee within 4-6 months of the investment being completed.

From the early stages of investment, portfolio companies are supported in improving their ESG performance, identifying and responding to opportunities for further improvement on an ongoing basis.

This includes confirmation that CFG's deal team has completed the CFG Anti Bribery and Corruption Sanctions and Conflicts Screening Assessment Report in conjunction with CFG Compliance and the Post-Closing Review addresses a number of other topics including Governance and Board oversight; Environmental Policy; Environmental Activities; Climate change impact; Health & Safety Policies; Employee Engagement; Responsible Procurement; a follow up on any ESG issues identified in due diligence and whether the company actively invests within its community.

CFG's private equity business conducts a monthly portfolio company review, which includes a focus on all ESG-related topics for portfolio companies. CFG has also conducted a number of online ESG surveys across its portfolio to better understand the approach of portfolio companies to the management of ESG issues.

Our Global Role

In addition to investing in and building better businesses, CFG has a role in the wider world and to the communities in which it operates.

CFG's private equity activities enable the company to contribute to a number of areas including:

- Employment: more than 60,000 people are employed by CFG portfolio companies
- Economic Growth: in 2017, CFG portfolio companies invested over CHF 1.5 billion in capital expenditure