Our Sustainability


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Charme Capital Partners SGR (hereinafter “Charme”) is an Asset Management Company investing across Europe, with a particular focus on Italy, the UK and Spain. It is primarily engaged in majority investments identified based on their growth potential, their market positioning and the excellence of their products or services, with the aim of enhancing their value in an ethical and responsible way.

This Responsible Investment Policy (hereinafter “the Policy”) is thus intended to provide a broad framework for Charme’s approach to environmental, social and governance (ESG) integration throughout the investment analyses, in its internal processes and in promoting ESG management in Portfolio Companies, consistently with the mission, vision and values outlined below.


The Policy outlines Charme’s responsible investment approach throughout the investment lifecycle, from the evaluation phase to the disinvestment phase of each investment, taking in consideration ESG factors throughout the process. The specific approach to ESG integration at Portfolio Companies level is determined in accordance with Investment Managers and involves consideration of multiple factors, including the investment strategy, sector and investment time horizon.

Mission, vision and responsible investments

In its investment processes, Charme is committed to implement ESG practices inspired by ethical, responsible and sustainable principles, in line with the international best practices and aiming at creating value in the medium to long term. Charme’s commitment in this sense has been formalised by signing the Principles for Responsible Investment (PRI) in 2019, the six principles promoted by the United Nations with the aim of contributing to the development of a more sustainable financial system through ESG incorporation in investment practices.

The mission and vision of Charme is fundamentally based on the following values:

  • Global investor platform: its strategic long-term investor base represents the distinctive factor of Charme’s investment activity and guarantees the best support for the development of companies in which it invests. This is balanced between international entrepreneurs, leading global industrial groups and key institutional investors;
  • Long-term relationships: in fifteen years of activity, Charme has built an unparalleled network of entrepreneurs, managers and international investors through its reputation for consistency, pragmatism and integrity;
  • Proprietary deal sourcing: Charme is deeply embedded in its core geographies, allowing for the development of proprietary projects in the initial acquisition phase as well as in each of the following development phases;
  • Growth: Charme’s objective is investing in companies with high growth and international development potential. The outcomes achieved so far prove Charme’s ability to accelerate growth alongside management teams by providing long-term strategic vision, operational support and growth capital;
  • Responsibility: Consistent respect for the heritage of Charme’s investee companies and their management teams before, during and after ownership;
  • Entrepreneurial culture: Charme’s strong entrepreneurial culture is at the core of its approach and has helped numerous portfolio companies to expand internationally throughout economic cycles;
  • Consistent returns: Charme’s investment approach and use of appropriate leverage has enabled its Portfolio Companies to grow in all economic conditions and has delivered strong returns for investors.


This Policy applies to all investment analyses, allowing the opening of new dialogue streams between Charme and the Portfolio Companies. In particular, the integration of ESG considerations is carried out in the following phases of the investment process:

Pre Investment

The evaluation of ESG elements in the pre-investment phase takes three approaches:

  1. Negative screening: excluding from investment those companies that engage in activities or sectors that are deemed controversial by Charme or that were involved in violations of human rights, corruption or cause damage to the environment;
  2. ESG due diligence: analyzing risks and opportunities related to material ESG topics for the target company, alongside a careful assessment of the management’s ethics and reputation;
  3. Scenario analysis: analyzing the financial impact of ESG macro-trends that are most relevant to the target company, with a particular focus on climate change impacts.

The outcomes of implementing the three above-mentioned approaches could result in the exclusion of some investments or in the asset devaluation/revaluation through an analysis of quantifiable risks.

If Charme deems potential ESG risks arisen in the pre-investment phase, acceptable and/or manageable, or the opportunities related to the potential investment as strategic levers for value creation, it will proceed in the investment process, as long as it is in line with predefined investment standards. Charme will then implement a monitoring process for ESG fields at risk in the target company, alongside the activation of specific initiatives aiming at mitigating and reducing identified ESG risks.

All outcomes arisen in the pre-investment phase are reported in the Preliminary Investment Memorandum and in the Final Investment Memorandum drafted by the investment team; these documents are submitted to the Board of Directors for evaluation and, if such evaluation is positive, the investment is approved.

Subsequently, relevant ESG topics related to the target company are translated into common Key Performance Indicators for all Portfolio Companies (“cross portfolio KPIs”) and in customized Key Performance Indicators for each Portfolio Company (“company-specific KPIs”); the KPIs are subsequently formalized in an ESG Action Plan.

Post Investment

After the acquisition, Charme applies the ESG Action Plan defined in the pre-investment phase by setting accountability measures both internally and at Portfolio Company level.

At this stage, the Portfolio Company, with the support of Charme, is tasked with establishing an internal annual reporting system in order to measure and monitor the performance and status of the ESG Action Plan. This includes cross portfolio KPIs and company-specific KPIs and, if appropriate, ESG targets with a corresponding time frame for their achievement.

The information collected is included annually in the report that Charme produces for its investors; this report also includes any relevant incidents at Company level and the related corrective measures adopted.

Charme adopts every possible measure to ensure that its Portfolio Companies receive the adequate training and tools to correctly understand, report and monitor the KPIs included in the ESG Action Plans.


Charme strongly believes in the value generated through the implementation of a responsible investment process and, for this reason, it is committed to share ESG outcomes achieved by Portfolio Companies with potential buyers, in order to outline the path of continuous growth of its Portfolio Companies after their exit from the Fund.


Charme is committed to annually collect internal reports drafted from Portfolio Companies and to monitor cross-portfolio KPIs to assess the overall performance of the Fund. The resulting ESG information about its portfolio will be periodically communicated to investors.

In order to ensure the timely monitoring and reporting of relevant ESG data and information at Portfolio Company level, Charme implements:

  • constant monitoring of ESG issues by the appointed investment managers;
  • investment manager’s commitment to organize, at least twice a year, ad hoc meetings / calls between Charme and the Portfolio Companies in order to discuss the progress of the ESG Action Plan.

During such meetings, potential criticisms will be analyzed and intervention measures will be agreed upon.

As stated above, the Charme annual report will disclose outcomes achieved by Portfolio Companies.

Furthermore, on an annual basis, Charme will complete the PRI’s Transparency Report, made publicly available on the PRI website. Charme is committed to defining and developing internal ESG objectives, in order to undertake a path of responsible and sustainable growth and improve its own ESG performance.


Charme is committed to reviewing and updating the Policy when it is deemed necessary in order to reflect ongoing developments in the ESG field and evolving best practices, and in any case at least every two years.

This Policy was first approved on 29 November 2019 by the Board of Directors of Charme Capital Partners SGR.



Charme views environmental, social, and governance (“ESG”) factors as important for making sound investment decisions. Long considered as part of its activities, Charme has formalised its commitment to high standards in its own ESG Policy. The policy sets out the significance of ESG factors in relation to its investors, portfolio companies, employees and other stakeholders.

As an investor, Charme aims to grow and improve performance as well as minimise risk in areas relevant to the long-term sustainability of each business in its investment portfolio.

Since 2019, Charme has been a signatory of the United Nations supported Principles for Responsible Investment. The Principles for Responsible Investment provide a voluntary framework to managers for incorporating environmental, social, and governance (ESG) issues into their mainstream investment decision-making and ownership practices.

Charme takes an active role in improving ESG awareness, performance and compliance in each portfolio company. At Charme a mandatory ESG assessment is undertaken during due diligence by the deal team members for each prospective investment: such due diligence activity’s aim is to identify any sustainability risk and to understand how such risks can be assessed and mitigated. In addition, a risks and opportunity assessment is conducted and the relevant next steps are agreed with the respective management teams, resulting into an ESG Action Plan summarizing the KPI applicable to each investee company. Following the initial ESG assessment, each portfolio company is then required to carry out the activities provided in the ESG Action Plan and on an annual basis to provide Charme a report highlighting the implementation of the ESG Action Plan, focused on performance and progress relative to company specific KPIs.

Sustainable Risk Finance Disclosure Regulation (2019/2088) (the “Disclosure Regulation”)

Charme makes the following disclosures in accordance with Articles 3(1), 4(1)(b) and 5(1) of the Disclosure Regulation.

Integration of sustainability risks

Charme believes that Environmental, Social and Governance (hereinafter, also, “ESG”) criteria are important when making informed, responsible investment decisions. Long considered an integral part of its activities, Charme has formally integrated its commitment to sustainability into its responsible investment policy. This policy sets out the importance of the integration of ESG considerations in relation to investors, portfolio companies and the investment process as a whole.

As an investor, Charme focuses on growth and improved performance, as well as on minimising risk in areas relevant to the long-term sustainability of the companies in its investment portfolio.

Since 2019, Charme has been a signatory to the United Nations-supported Principles for Responsible Investment. The Principles for Responsible Investment offer managers – on a voluntary basis – a framework for the incorporation of environmental, social and governance (ESG) issues into their investment decision-making process and in relation to the exercise of rights with regard to portfolio companies.

Charme incorporates sustainability considerations into its investment decision-making processes as it has adopted specific ESG and responsible investment policies, as well as a dedicated risk management policy. In this context, Charme also adopts targeted methodologies to examine and control sustainability risks, both during the preliminary investment assessment phase and during phases after the investment has been made. These sustainability-related risks are identified taking account of the particular characteristics of the company in which the investment is planned, together with the business segment in which the target company operates.

In more detail, in the period prior to the investment, the Company follows a highly selective approach, using a negative filtering procedure to exclude a priori investments in areas considered controversial, in line with the rules of the funds managed. With this in mind, investments in companies operating in the following areas are ruled out:

  • weapons;
  • tobacco;
  • illegal drugs;
  • pornography or prostitution; 
  • alcoholic beverages.

Investments in companies that are, or have been, involved in serious and systematic human rights violations or serious environmental damage or that have been implicated in cases of serious corruption are also excluded.

This approach emphasises Charme’s commitment to adopting investment practices that consider not only the potential economic return but also the social and environmental impact of investments, demonstrating a sense of responsibility towards a broader range of stakeholders and towards the planet.

Once the negative screening stage has been completed, Charme carries out specific ESG due diligence. This involves analysis of the risks and opportunities regarding ESG issues relevant to the individual target company, as well as performance of a scenario analysis involving a review of the financial impact of macro-trends related to ESG issues relevant to the target companies, with particular attention to climate change effects.

The conclusions reached as a result of the analyses describe above are incorporated into the reports prepared by the investment team. These documents are then presented to the Board of Directors so that an informed discussion can take place. These analyses, along with other valuation factors, form the basis for the decisions of the Board of Directors as to whether or not to proceed with the investment process. This process ensures that every investment decision is based on a detailed understanding of both risk and sustainability issues and value-added opportunities. Subsequently, relevant ESG issues relating to the target company are considered in cross portfolio Key Performance Indicators (KPIs) and in company specific KPIs. Finally, the KPIs are included in the investment agreement in the form of an ESG Action Plan.

During the post-investment phase, Charme implements the ESG Action Plan drawn up at the pre-investment stage, establishing accountability measures both internally and at the level of the portfolio companies. In this phase, with the support of Charme, the individual portfolio company is charged with setting up an internal annual reporting process to measure and monitor performance and the state of progress with the ESG Action Plan. Where appropriate, it shall also define a plan of ESG objectives and the timeframe over which they should be achieved.

When selling its investments, Charme performs a review of the ESG measures implemented during the management period. This review is aimed at assessing progress made in improving the ESG profile of the investment and assessing the residual level of ESG risk.

Failure to take account of the adverse impacts of investment decisions on sustainability factors

Article 4 of the SFDR requires investment fund managers to state explicitly whether or not they consider the “principle adverse impacts (PAIs) of investment decisions on sustainability factors. For the purposes of the regulation, “principal adverse impacts” should be construed as the effects of investment decisions that have adverse impacts on sustainability factors related to the environment, social and personnel issues, respect for human rights and issues regarding the war on bribery and corruption.

Although ESG issues and sustainability risk are of central importance and are taken seriously by Charme, Charme does not currently take account of the adverse impacts of investment decisions on sustainability factors. This is also due to the fact that there is still limited availability of comprehensive and reliable data on environmental, social and governance (ESG) factors and, in many cases, it is not sufficiently standardised to permit and effective, uniform assessment of the adverse impacts of all investments.

Charme performs a detailed review of the impacts of its investment decisions on sustainability criteria. It does so by following an approach that differs from analysis of the principal adverse impacts (PAIs) and which is based on the following principles:

  • adoption of an exclusion policy with non-participation in certain investment areas considered significantly controversial;
  • design and implementation of an ESG action plan aimed at improving specific ESG performance for each portfolio company;

The Company reserves the right to review and, if necessary, update its approach to principal adverse impacts (PAIs) and related disclosures, accordingly.

Remuneration policy and integration of sustainability risks

Charme integrates its commitment to sustainability into its remuneration policy, providing for the management of sustainability risks also through a remuneration system that does not encourage the taking of such risks. In particular, the short-term incentive-based variable remuneration of certain senior members of the Charme management team may be linked to compliance with sustainability risk management measures when implementing investment policies.

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