Triodos Investment Management finances and invest in companies, institutions and projects that add cultural value and aim to benefit people and the environment. Triodos Investment Management does this with the support of investors who want to encourage socially responsible business and a sustainable society. Triodos Investment Management (Triodos IM) manages Socially Responsible Investment (SRI) funds and impact funds. The SRI funds enable clients and Private Banking to invest in listed companies with high sustainability performance. Through the impact funds Triodos IM directly invests in sustainable companies and projects.
To assess investment proposals, our relationship managers and fund managers refer to our Business Principles in the first instance. Then, the Lending Criteria which specify how Triodos IM’s vision and mission are translated into investment practice are applied. Our Minimum Standards & Exclusions set out the absolute minimum requirements that Triodos Investment Management applies for its investment activities.
Triodos Investment Management takes measures to mitigate conflicts of interest which may occur from the different roles and responsibilities it has towards the managed funds, the funds investors and the companies in which we invest. We have clear procedures in place containing rules covering situations where (potential) conflict of interests could occur. These procedures are described in our ‘Triodos Policy on Confidential Information, Chinese walls, and Conflicts of Interest’.
Furthermore Triodos IM commits itself to the DUFAS Principles of Fund Governance, which include several provisions on Conflicts of Interest. In line with these provisions and as far as appropriate, a segmentation between investment decisions, settlement of transactions, administration of transactions and control is in place to prevent (potential) conflicts of interests. Triodos IM installed “Chinese walls” to manage the flow of price-sensitive information and other confidential market information. There is an organizational, physical and personnel segregation between the business units to the extent that this is reasonably necessary, relative to their activities. Appropriate information-sharing barriers are in place to prevent dissemination of sensitive market information. No price-sensitive or confidential market information is exchanged between business units other than is required to effectively carry out their work.
Triodos co-workers can be appointed to a management or supervisory position of a company which is financed by one of our funds, except in case of Triodos SICAV I. In case of an appointment, the appointed co-workers is not allowed to deliberate or participate on any decision where there is a conflict of interest.
It is possible that companies and projects which are financed by our funds also invest in a Triodos fund. Triodos co-workers are not allowed to take part on such investment decisions in order to prevent a conflict of interest. In relation to financed companies, Triodos Investment Management has provisions in place which prevent Triodos co-workers to use confidential information for any other purpose then for which it has been acquired.
For investments in the stock markets, the dataprovider provides bi-weekly overview of alerts, relating to any ESG controversies. Alerts are picked up within two weeks. In case of serious concerns companies are placed under review. If a company is removed from the universe, the asset manager has to sell the securities within six months.
For direct investments the fund manager monitors the investments through periodical reviews and as part of the ongoing long-term relationships. In case of concerns immediate contact takes place.