Environmental, Social, and Governance
Fasanara Capital Limited strongly believes that it has a moral obligation to play a role in making the world a better place through responsible investing and that incorporating environmental, social and governance (ESG) considerations in its business decisions is essential to creating value for its stakeholders. To support this philosophy, Fasanara has established an internal operations group responsible for the review of ESG policies, assessment of investments and reporting to stakeholders.
Our Environmental Values:
As a signatory to the United Nations Principles of Responsible Investment (UNPRI), we are committed to incorporating ESG issues in our decision-making and ownership practices and have used the UNPRI as a framework to develop our ESG policy across all investment activities.
Selecting and Monitoring Investments
We systematically incorporate ESG criteria into our investment and operational due diligence processes. The ESG findings of the Investment Team are formally documented within the due diligence reports produced for our Investment Committee, with potential concerns flagged for consideration. All investments are subject to varying degrees of ongoing ESG monitoring.
We make every effort to meet stakeholders’ expectations, facilitate their access to information and provide them with clear and transparent information based on regular and value-added reporting. We also inform our them of our ESG Policy and keep them updated on our approach to ESG issues.
The TCFD framework aligns with Fasanara’s belief that climate change is an important business issue that can impact long-term financial performance. For more information on how Fasanara aims to assess, monitor, and manage the potential effects of climate change on our investment processes and portfolios, as well as on our business operations, please see our November 2020 TCFD Update here.
We encourage greater ESG awareness across our wide network through relationships which are forged over years of working together. To the extent possible and relevant, we will discuss with network partner originators how our ESG Policy or a similar policy can be implemented by them.
When it comes to corporate governance, we conform with best practice. In addition, we believe that we should at all times behave ethically and should have regard to and monitor the ESG consequences of our own business operations, paying particular concern to our role in the wider community.
Fasanara Alternative Credit | Foundation Share Class
Last year, Fasanara Capital launched a new “social impact” share class for the Fasanara Alternative Credit Fund. The Fasanara Foundation Share Class aims to deliver returns that go beyond financial returns by giving investors an opportunity to make a high social impact.
Aligning Fasanara’s interests with its investors’ interests is the key to all our investment decisions. That’s why Fasanara Capital, in addition to complying with our existing environmental, social and governmental (ESG) filters and parameters in our investment decision making and monitoring processes, has decided to donate a fixed percentage of our fees for this new share class to support a range of environmental and social charities, including Stand By Me and Synchronicity Earth.
ESG Rating Methodology
Fasanara developed a proprietary methodology to formulate the ESG profile of the 55 countries where it does origination: Fasanara Cardo AI engine. The model is based on numerous statistical indicators provided by international organisations, universities and government bodies and external data providers. We use the ESG factors to analyse our individual line-items in the portfolios, numerically against each specific SDG criteria.
To Analyse Fund Holding: Our 12 ESG Factors
The following case studies serve as examples of how it works. Here we include an overview of the products and services the company provides, if there are any particular projects for which the financing has been provided and complementary details (such as the Fasanara analyst on the deal, total lent and date of first transaction) alongside the Fasanara ESG rating. The list is by no means comprehensive, but it gives a sense of the diverse range of characteristics and ESG issues we follow.