ESG as an investment priority

Invest to support the prosperity and transformation of companies that are respectful of society and the environment.

ESG performance is embedded in Wendel’s approach as a long-term investor. Its permanent capital and the stability of its shareholder base gives it the time and ability to carefully develop and transform the companies in which it invests, delivering both return on investment to its shareholders and lasting benefits to society.

The framework for assessing investment opportunities used by Wendel provides for a systematic analysis of ESG risks and opportunities. In strict compliance with its role as a shareholder, Wendel encourages policies and decisions that contribute to the creation of shared and sustainable value, as well as transparency and regular communication in terms of ESG performance.

The Investment Exclusion Policy is reviewed each year by Wendel’s Executive Board.

In addition to refraining from investing in entities involved in the production, marketing or use of, or trade in, illegal products or activities, Wendel will also not invest in entities directly responsible for the production, distribution, marketing or trading in:

1. Tobacco;
2. Pornography;
3. Controversial weapons, as defined by the following treaties:
   – The Treaty on the Non-Proliferation of Nuclear Weapons (1968),
   – The Biological Weapons Convention (1975),
   – The Chemical Weapons Convention (1997),
   – The Ottawa Treaty (1997) on anti-personnel mines,
   – The Convention on Cluster Munitions (2008);
4. Firearms ;
5. Gambling facilities or products;
6. Coal mining and coal-based power generation;
7. Drugs for recreational use ;
8. Fur ;
9. Asbestos.

In addition to the sector exclusions set out above for all of the Company’s direct investments, Wendel will also pay the utmost attention to indirect economic exposure to these business segments, in particular when examining investment opportunities that have passed the first filter of the exclusion list.