Fondaco considers the integration of Environmental, Social, and Governance (ESG) factors into its investment process to be of fundamental importance, based on the belief that these elements, in addition to fostering sustainable economic and social development, can also positively contribute to the financial performance of the funds while reducing their risks.

The approach adopted by Fondaco to pursue and monitor its objectives, as well as to identify and mitigate risks, includes the establishment of appropriate governance structures to oversee all aspects related to the ESG strategy, and the adoption of an ESG risk management policy. For a more detailed description of the ESG approach, please refer to the section on investments in the “Sustainability Policy” at the following link:

Regarding the sustainability risk management process, Fondaco has approved a policy, which can be found in the Risk Management Manual at the following link, which is structured as follows:

• Definition of a high-level ESG process, identifying relevant stakeholders and their responsibilities;


• Specific process for alternative investments;


• Specific process for traditional investments, including the definition of internal operational limits on ESG risks;


• ESG risk monitoring process carried out by the Risk Management function;


• Corporate response function to ESG risks.