ESG policy

AN ESG POLICY AT THE SERVICE OF A SUSTAINABLE TRANSFORMATION

RAISE was founded to serve entrepreneurs on the basis of a pioneering model of shared success. In so doing, it made a firm pledge to work in favour of an engaged and responsible finance and to foster the sustainable development of companies that help France grow.

These commitments have been enshrined in the following principles:

Generosity, with investment teams donating 50% of their profit-sharing;
Gender parity at all levels of the hierarchy and two-tiered governance;
A “raison d’être’” (mission statement) enshrined in its by-laws as a compass for the group’s strategic roadmap;
A dynamic ecosystem that is virtuous and creates value for everyone;
Transparent governance;
Implementation of a proprietary Impact Measurement and Management (IMM) methodology, applicable to any sector and companies of all sizes;
An employee compensation policy that adheres to the recommendations of the French Financial Markets Authority (AMF) and reflects the group’s achievements in sustainable development, as enshrined in its mission statement;
A friendly working environment that contributes to employee well-being.

Our conviction

Driven by its ambition to take an active role in companies’ sustainable transformation, RAISE has naturally made environmental, social and governance criteria part of its DNA. These criteria are sources of leverage in encouraging the emergence of more responsible organisational set-ups that better address environmental challenges and encourage increased transparency with stakeholders.

Measurement is essential to progress: in its rigorous ESG policy, RAISE pledges to measure its impact on its stakeholders and investments, and to support its portfolio companies in their change trajectory. This is not just a noble goal, it is also a mandatory response to an emergency situation – never has the need for a more human, more responsible and, above all, more beneficial economy been so apparent.

Incorporating ESG challenges is the cornerstone of the response that we must provide.

65%

de nos participations ont mis en place un Mécanisme de partage de la valeur non obligatoire annualisé*

65%

de nos participations ont mis en place un Mécanisme de partage de la valeur non obligatoire annualisé*

TRACK-RECORD OF OUR ENGAGEMENT

2013	RAISE is founded on the basis of a pioneering, value-sharing model to serve entrepreneurs. The RAISE Group is based on a financing mechanism combining profitability and generosity, as investment teams donate 50% of their profit-sharing to fund RAISESHERPAS, an in-house endowment dedicated to supporting start-ups. RAISESHERPAS is now the largest private foundation for entrepreneurship in France, supporting 350 start-ups with personalised programmes and mentorships; 72 start-ups have received financing.
2014	RAISE becomes a signatory of the United Nations’ Principles for Responsible Investment (PRI).
2015	The first annual review of ESG initiatives by RAISE Conseil portfolio companies.
2018	The Group launches the Movement for a Beneficial Economy (MBE), based on its conviction that companies must now take action in contributing to society. In demonstrating the virtues of shared success, MBE intends to rally and bring together everyone who believes in making the world a better place and in taking action accordingly.
2019	Launch of RAISE Impact to finance companies committed to sustainable development or that are in transformation, and to draw up a methodology for measuring extra-financial performance A carbon balance is conducted of RAISE Conseil Implementation of an ESG reporting with all RAISE Group holdings in order to analyse and consolidate data and to monitor them over time. A tailored recommendation covering the main areas of improvement is then made to support the sustainable transformation of our portfolio companies.

« DÉVELOPPER UN ÉCOSYSTÈME INNOVANT ET GÉNÉREUX POUR SOUTENIR DES ENTREPRENEURS VISIONNAIRES ET CONSTRUIRE AVEC EUX UNE ÉCONOMIE RESPONSABLE ET DURABLE »

2020

RAISE Impact launched its Impact Measurement and Management (IMM) propriety methodology, applicable to all sectors and companies of all sizes. Its goal is to support companies’ in achieving positive impact and committing to a trajectory of improvement.
Subsequent to a year of planning alongside all employees, in partnership with the university chair on corporate theory at the the RAISE Group consolidated its mission and enshrined it in its by-laws. “Developing an innovative and generous ecosystem to support visionary entrepreneurs and joining them in building a responsible and sustainable economy” is now the guideline for all of the Group’s activities.

In addition, four structural commitments were added that allow RAISE to carry the banner of engaged and responsible finance and guide the roll-out of its strategic roadmap:

Sharing success;
Promoting gender parity and diversity as sources of performance and harmony;
Supporting companies in measuring their activities’ economic, environmental and social value and in their sustainable transformation;
Placing innovation at the heart of our standards of excellence.

A new milestone was crossed in ESG monitoring of our financial holdings. We added a carbon footprint assessment module (for Scopes 1, 2 and 3) to set up an initial framework to help our companies devise a strategy for reducing their emissions.

Applying our ESG policy

INCORPORATING ESG CRITERIA INTO OUR FUNDS’ INVESTMENT STRATEGY

The ESG policy implemented by RAISE addresses three basic principles:

A unified ESG policy applied to all investment activities – RAISE Investment, RAISE Ventures and RAISE Impact
An ESG policy covering the entire lifecycle of our investments. As soon as we spot an investment opportunity, ESG diagnoses are undertaken by specialised audit agencies to assess the maturity level of a company. Throughout the investment’s lifetime, we annually monitor trends with respect to this ESG maturity using a broad, 130-KPI grid.
An ESG policy that focuses on companies’ sustainable transformation. Each year, following an analysis of reporting data, RAISE suggests areas of improvement to its portfolio companies and then monitors progress in those areas.

INCORPORATING ESG CRITERIA INTO OUR INVESTMENT PROCESS

Taking the risk of a material negative outcome into account in valuing an investment

Prior to any investment, an ESG audit is routinely conducted as part of our due diligence process, in order to identify all environmental, social or governance events or situations, which, if they came to pass, could have a significant real or potential negative impact on the value of the investment

ESG audits and diagnoses provide an objective assessment of risks to an investment’s intrinsic value, whether environmental, social, regulatory or reputational risks. Such risks are incorporated into the investment decision. The value created by an investment is inseparable from its ESG performance.

Taking the risk of a negative outcome into account in sustainability factors

RAISE measures the medium- or long-term risk of an investment in an activity having a negative environmental, social or governance impact (i.e., non-financial risk).

In addition to ESG criteria, the main negative occurrences in sustainability are those that result in negative impacts on the seven transversal avenues for improvement that are RAISE’s core values:

Supporting companies’ sustainable transformation in offering solutions, tools and dedicated support;
Encouraging parity and in particular the presence of women in key governance bodies, such as boards of directors, strategic committees, and management positions;
Encouraging the sharing of value with employees, particularly through shareholdings;
Encouraging the measuring and controlling of carbon footprints;
Making our companies more aware of good governance practices, particularly the importance of independent board members;
Encouraging employee training;
Appointing CSR reporters or hiring a CSR officer.

These avenues of improvement are measured and monitored each year under RAISE’s ESG policy.

Indicators for identifying negative occurrences in sustainability are based on RTS the Regulatory Technical Standards (TRS) of the SFDR regulation) standards are monitored regularly and are monitored regularly and subject to dedicated reports.

Taking the risk of a negative outcome into account in sustainability factors

RAISE measures the medium- or long-term risk of an investment in an activity having a negative environmental, social or governance impact (i.e., non-financial risk).

In addition to ESG criteria, the main negative occurrences in sustainability are those that result in negative impacts on the seven transversal avenues for improvement that are RAISE’s core values:

Supporting companies’ sustainable transformation in offering solutions, tools and dedicated support;
Encouraging parity and in particular the presence of women in key governance bodies, such as boards of directors, strategic committees, and management positions;
Encouraging the sharing of value with employees, particularly through shareholdings;
Encouraging the measuring and controlling of carbon footprints;
Making our companies more aware of good governance practices, particularly the importance of independent board members;
Encouraging employee training;
Appointing CSR reporters or hiring a CSR officer.

These avenues of improvement are measured and monitored each year under RAISE’s ESG policy.

 Environmental indicators

Greenhouse gas emissions (perimeters 1, 2, 3)
Carbon footprint
Carbon intensity of portfolio issuers
Exposure to fossil fuel sector
Share of consumption and production of non-renewable energies
Water pollution
Share of investments in activities having a negative impact on biodiversity
Intensity of energy consumption by high-emission sectors
Hazardous waste

Social indicators

Share of issuers implicated in a violation of the UN’s Global Compact principles the OECD’s guiding principles
Share of issuers implicated in insufficient processes and mechanisms for monitoring based on the UN’s Global Compact principles the OECD’s guiding principles
Share of investments linked to controversial weapons (antipersonnel mines, cluster weapons, and chemical and biological weapons)
Diversity on boards of directors (gender ratio)
Non-adjusted gender gap in compensation

ENHANCING OUR HOLDINGS EXTRA-FINANCIAL PERFORMANCES

We go beyond measurements and express our commitment in a constant drive for progress throughout the lifecycle of our portfolio companies by guiding them towards a trajectory of tangible improvement.

Convinced of the importance of ESG challenges and the monitoring of those challenges, we support managers in setting up their own ESG policies through the following mechanisms:

Training and awareness campaigns;
Recommendations of specific areas for improvement;
Co-design of an ESG roadmap;
Monitoring of their progress through our reporting tools.

By way of illustration, last year alone, RAISE issued 159 priority areas of improvement with its 31 portfolio companies. Its 2020 report reported encouraging results, with 19% reported as completed and 34% in the process of being complied, hence a total of 53% of the priority areas of improvement.

CONSOLIDATING AND DEEPENING THE ESG STRATEGY WITHIN RAISE

As an asset management firm, we measure and track the extra-financial performance of RAISE Conseil to lay out a trajectory for improvement for ourselves, just as we do for our portfolio companies.

Each year, RAISE conducts an assessment of the carbon footprint of its activity (including Scopes 1, 2 and 3), along with an ESG diagnosis that highlights areas of improvements.

As an extension of this approach, RAISE adheres to the same rules as its portfolio companies in filling out the 130-KPI grid annually.

Our governance

The ESG Committee meets once per month. It is in charge of drawing up and executing the RAISE Group’s ESG strategy and monitoring progress in the ESG campaign in portfolio companies.

It takes part in compiling the extra-financial information on the portfolio and the asset management firm itself, while making the teams more aware of the RAISE II group’s ESG strategy. It takes part in ongoing training of committee and team members, conducts a periodic review of objectives and changes in the ESG strategy, and devises action plans for all portfolio companies and the investment firm itself.