ESG integration
Application at Sienna Private Credit
Our DNA is focused on action towards the real economy and impact. This naturally leads us to favor approaches and themes more related to ‘greatest improvement’ rather than ‘best practice’: it invites us to direct our efforts towards investments with significant impact rather than simply taking established best practice into account.
We have therefore adhered to the Institut de la Finance Durable‘s definition of impact, signed the corresponding impact charter and are a member of industry working groups on this theme. Our approach is based on the 3 pillars of intentionality, additionality and measurability.
Taking ESG into account in the decision-making process
Exclusion policies
As part of its ESG integration policy, Sienna’s private debt expertise has been implementing an exclusion policy for several years. Sienna acts in accordance with applicable national and international laws, prohibitions, treaties, and embargoes in defining its investment universe. In addition to these legal requirements, Sienna also takes into account sectoral and normative exclusion criteria concerning, for example, human rights, tobacco, nonconventional fossil fuels or coal exposure. The exclusion policy describes the conditions under which these exclusions apply.
Our Exclusion Policy
Controversy policies
As part of its ESG integration policy, our private credit team has implemented robust processes to identify potential controversies and ESG risks at the pre-investment stage for direct lending funds (excluding granular portfolios). To support this approach, we rely on an ESG controversy identification and scoring tool developed by EthiFinance in partnership with SESAMm. The tool analyzes several years of historical data and leverages a comprehensive data lake to monitor ESG-related controversies. The information collected is then assessed to determine the severity of any identified controversy on a scale from 0 to 5. This structured process provides a robust and consistent assessment, which is taken into account by the Investment Committee as part of its review of prospective borrowers.
Climate
Our commitment to climate action is embedded in our core values and throughout our investment processes reflecting our belief in a sustainable and a more environmentally responsible future.
Our private credit expertise applies the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and obtained validation of its climate targets from the Science Based Targets initiative (SBTi) in February 2025.
Biodiversity
Sienna defines biodiversity as the diversity between species, within species and ecosystems and their interactions.
With regard to biodiversity, Sienna’s private debt expertise is progressively implementing a method for analyzing impacts and dependencies on biodiversity, as well as a quantitative analysis of the biodiversity «proxies» of the companies it finances.
DE&I
We wholeheartedly believe in the principles of Diversity, Equity, & Inclusion, which are at the core of our values and drive our commitment to a more inclusive economy.