F2i adopts a fully integrated ESG approach within the investment process, summarised in the following phases:
Responsible Investment
F2i creates value for investors and stakeholders by transforming financial resources into sustainable real economy projects
The integration of ESG factors into the investment process and the promotion of the sustainable development of the portfolio contribute to the creation of asset value and therefore returns for investors.
F2i is committed to operating with diligence, fairness and transparency in the interest of its investors and the integrity of the markets. Our conduct is based on the fundamental principles of legality, loyalty and good faith. Compliance with regulations, ethical rules and transparency in business management is not only an essential requirement, but also a competitive advantage.
We believe that properly managing environmental, social and governance risks and opportunities throughout the investment cycle reduces business and financial risk and improves the financial performance of our portfolio.
ESG issues are analyzed from the initial scouting phase of the potential investment. The process involves discarding investments that fall within the so-called 'excluded sectors' or that have an excessive negative impact on ESG issues (negative screening), and the enhancement of investments that can make a positive contribution in ESG terms (positive screening).
During the analysis of the potential investment, ESG issues are identified and assessed through ad hoc Due Diligence. The results are submitted to the ESG Committee and summarised in the Investment Memo submitted to the Investment Committee and the Board of Directors during the approval of the investment, so that the main sustainability profiles become an integral part of the investment decision-making process.
During the investment phase, the Risk Manager develops an independent analysis of ESG risks that determines a quantitative ESG rating based on relevant information relating to the ESG positioning of the target asset, with the aim of:
- ensure compliance of the investments of the managed funds with the relevant regulations and the ESG Policy in force;
- identify, manage and mitigate any financial and reputational risks potentially arising from investments exposed to ESG risks.
If an equity investment presents critical ESG issues, the ESG Committee may propose a definition of an Action Plan to be agreed upon with the management of the target company within six months of completing the investment to gradually remedy the main gaps with respect to ESG issues.
Once the investment has been made, F2i continues through its engagement activities to accompany the portfolio companies towards a path of continuous improvement of ESG KPIs, also through the assignment to the management of the investee companies of ESG objectives to the achievement of which is partly linked to the payment of MBO / LTI
The results of ESG performance are reported in the following documents:
- Sustainability Report;
- Fund Reports, which include the Annex on periodic reporting for Funds that promote environmental and social characteristics;
- PAI statement, which also includes PAI Indicators.
Main milestones
2018
- Policy ESG
- Three-year ESG plan
- Establishment of the ESG Committee
2019
- First sustainability report
- Signing up PRI (Principles for Responsibile Investment)
- Inclusion of ESG factors in core procedures
2020
- Fondo per le Infrastrutture sostenibili, pursuant to Article 8+ SFDR
2021
- ESG Policy (update)
- Principal Adverse Impact (PAI) Statement
- Three-year ESG plan (update)
- ANIA-F2i Fund, pursuant to Article 8 SFDR
- GRESB membership (Global Real Estate Sustainability Benchmark)
2022
- Establishment of the "ESG Sustainability" Business Unit
- Policy Diversity & Inclusion (D&I)
- Infrastructure Debt Fund 1, pursuant to Article 8 SFDR
2023
- ESG Policy (update)
- ESG Monitoring and Reporting Procedure
- Extension of the Control Risk Commitee responsibilities to sustainability (CCRS - Control, Risk and Sustainability Committee)
- ESG Action Plan
- UN Global Compact membership
- Launch of F2i – Rete Digitale, pursuant to Article 8 SFDR
2024
- Introduction of the Internal ESG Rating
- Mapping and first estimate of F2i Scope 3 GHG emissions
2025
- Controversial weapons ban policy