Quadrivio group strengthens integration of ESG criteria within its investment strategies and decision-making An exclusive partnership is signed with Cerved Rating Agency and T8P Consulting
Strengthening integration of ESG criteria in its investment strategies and decision-making, and fostering the systematic adoption of environmental, social and corporate governance principles also within its portfolio companies: this is the aim of the partnership Quadrivio Group has signed with Cerved Rating Agency and T8P Consulting.
The group has been operating on the private equity market for over 25 years, and currently promotes and manages four thematic funds: Made in Italy Fund I, which invests in Italian excellence in the fashion, design, beauty and food & wine sectors; Industry 4.0 Fund, investing in technological innovation and the digitalization of SMEs; Silver Economy Fund, focusing on companies offering products and services to the Silver Age user bracket; and the recently launched Made in Italy Fund II, which will be investing in the lifestyle segment.
Quadrivio Group is today the first financial operator of its kind to have sealed an exclusive partnership with two highly qualified advisors, which stand out for their proven experience in ESG matters and for their complementary competences. A joint collaboration where the goal is to consolidate investors' trust, provide support to the assets management company during all stages of the investment process, and to assist its portfolio enterprises as well as those in the acquisition phase in undertaking an exemplary path in sustainable development. This is not only by assessing their sustainability levels but by defining ad-hoc action plans. An approach in keeping with the main regulatory requirements and one capable of generating added value for all the stakeholders involved, besides being implementable in all the Quadrivio Group companies.
Cerved Rating Agency and T8P Consulting possess complementary core competences, and these enable a synergic approach to be provided, one aimed at fostering and triggering virtuous paths within the portfolio companies, as well as pinpointing, assessing, preventing and reducing potential reputational, compliance or operational risks deriving from investments in enterprises that are active in sectors that are not considered sustainable or socially responsible. In more detail, CRA will make a methodical approach and the standardized procedures typical of a rating agency available, as well as its sector studies database and benchmarking activities. Instead, T8P will contribute through a consultancy approach, providing in-depth analysis, business model evolution, and definition and planning of priority actions.
The partnership agreement sets out the current subdivision of tasks and responsibilities among those involved as follows: as regards the assets management company, CRA will oversee aspects concerning ESG policy and the company's PRI adherence, while T8P will see to the ESG reporting for the first three funds. Instead, as regards the portfolio companies, joint action by the two advisors is planned for all stages of the investment process (due diligence, management/monitoring and exit), with CRA focusing on ESG assessment based on a PAI evaluation and monitoring approach as set out by the Sustainable Finance Disclosure Regulation (SFDR), while T8P will define the Action Plan to apply ESG improvement initiatives.
Paulina Tengler Galzignato, Investor Relator & ESG Coordinator at Quadrivio Group, commented on creation of this new partnership: "As private equity operators, we are very happy to embark on this virtuous path alongside two highly qualified companies such as Cerved and T8P, so that greater awareness can be generated within SMEs. It is essential to understand the importance of adopting a sustainable approach, one based on drafting and measuring a differentiated ESG strategy capable of assigning the right priority and relevance to internal and external factors, as well as bringing added value for growth and development in the companies we work with."
"We're glad to be able to provide support to a leading market operator, Quadrivio Group, by defining effective ESG (environmental, social and corporate governance) action plans for all its portfolio enterprises," Stefano Corti, Head of Sustainability & ESG at T8P Consulting, remarked. He added: “Adopting ESG policies and practices not only enhances the reputation of an SME but also brings increased competitiveness on the global market. Companies embracing ESG principles show greater sustainability and resilience, and a solid ESG action plan can help protect the environment and improve social aspects, while also generating a tangible competitive edge, enabling a sustainable and successful future to be built."
Fabrizio Negri, CEO at Cerved Rating Agency, stated: “We're pleased to team up with Quadrivio to supply support in analysis and monitoring of the ESG factors for its portfolio companies. The new EU Sustainable Finance Disclosure Regulation has set out an important change in the transparency of investment products. What remain unchanged are the commitment and evolution of Cerved Rating Agency ESG services in providing private equity operators with useful tools for PAI measuring in accordance with the new European regulations for sustainable finance.”