ESG issues analyzed:

As a General investor, the 120 indicators on which Naxicap requires its portfolio companies to report annually cover a wide area of central ESG issues applicable to all sectors and activities.

These indicators derive from consolidated recommendations and studies by industry experts such as the PRI, the ESG Commission of France Invest, external consultants as well as industry peers.

Methodology used for analysis:

Based on the portfolio companies’ answers to the annual ESG indicators, Naxicap has developed its own detailed in-house scoring methodology enabling an accurate and detailed quantitative monitoring and analysis of the portfolio companies’ performance on material environmental, social and governance issues, including their interaction and impact on stakeholders.

The materiality weights Naxicap applies to the different sectors, are based on Naxicap’s interpretation of the publicly available materiality framework of the Sustainability Accounting Standards Board (SASB). Naxicap has also developed its own in-house benchmark database to certain key indicators based on publicly available information and data bases.

Defintion of materiality:

In the analyses undertaken, the materiality is defined as factors determined to substantially affect, or have the potential to substantially affect, the financial condition or operating performance of a company, as well as the factors’ ability, or the potential ability, to create environmental and social value for the company and its stakeholders.