RING RESPONSIBLE INVESTMENT APPROACH
We are convinced that actively promoting social responsibility is key to building a solid brand reputation and generating sustainable financial value. Therefore Ring SAS, the Management Company, is committed to developing both a responsible investment approach and a strong CSR policy for its funds.
As a private equity fund Ring has developed its own responsible investing methodology blending ESG weighing, norm-based analysis, sector-based analysis and shareholder engagement:
1. ESG weighing: throughout the investment process we adopt a structured approach to ESG criterias in due diligence phase, portfolio monitoring, divestment and reporting to investors;
2. Norm-based exclusion: we pay particular attention to the respect of norms and international conventions;
3. Sector-based exclusion: we do not invest in sectors such as tobacco, weaponry, alcohol, gambling…;
4. Shareholder engagement: as a shareholder Ring is committed to help the companies improve its environmental, social and governance performance.
ESG structured approach
We integrate ESG considerations throughout our investment process:
> To source opportunities we pay attention to the respect of norms and international conventions;
> In addition we filter companies according to their sector;
> Moreover, we particularly consider investment in sectors where innovation can have a positive and real-world impact.
2. Due Diligence:
> During our due diligence process, in addition to traditional audits of the company (finance, people, tech, legal...) we consider, when possible, the ESG indicators of the company, based on information from the management;
> This process enables the Investment team to better understand the CSR strategy of the company, its past achievements and its improvement margin;
> This ESG analysis can be discussed at the Investment Committee and is fully part of the investment decision.
> As a shareholder of its portfolio companies Ring pays particular attention to use its voting right to influence the company on improving its CSR strategy and ESG KPIs; include, when possible, at least once a year the topic of CSR strategy improvement on the agenda of a board;
> During the divestment stage, Ring will pay attention to the CSR policy of the potential buyer (nature of their activity, impact of the acquisition on the realisation of the development plan of the targeted company…).
CSR culture within the Management Company and its ecosystem
1. The co-founders of the Management Company view CSR as a driver of performance and their past experience show great concern about the social impact of businesses;
2. Therefore at the level of the Management Company, Ring SAS, the whole team is also strongly committed to breathe life into these criteria and guidelines;
3. The team is therefore attentive to metrics such as wage differentials, alignment of the whole team, parity and collaboration and strives to improve these metrics;
4. Ring SAS is a member of France Invest;
5. Ring SAS is currently building a structured CSR strategy.
Ring Capital 1 additional ESG policy
In addition to these guidelines, we have structured a complementary ESG policy at the level of the fund Ring Capital 1:
1. Portfolio ESG reporting: the fund requests its portfolio companies to report annually on their ESG criterias. This reporting is based on a proprietary Ring form comprising c.100 questions relating to environmental, social, and governance KPIs. We specifically focus on the types of employment contracts, parity, proportion of employees with interest in the company, wage policy, CSR strategy…;
2. Investors ESG reporting: Ring Capital 1 commits to report annually to its investors the ESG policies of the portfolio companies.