Responsible Investment
Turning finance into a sustainable industry is F2i's mission, which is to create value for investors and stakeholders by transforming financial resources into sustainable real economy projects.
ESG STRATEGY
F2i operates in the infrastructure investment sector in Italy and Europe through equity and debt funds, integrating ESG aspects in the investment process strategies.
…in equity funds
F2i involves the acquisition of shareholdings, preferably controlling ones, in order to:
- create value through aggregation processes aimed at creating industry leaders
- promote a virtuous path in the ESG field, to support the portfolio companies in their transition towards a sustainable development model
…in debt fund
F2i promotes the development and renewal of infrastructure in Italy and EU countries in key sustainability supply chains through senior and junior financing through loans (direct lending) and bonds
As evidence of its commitment to ESG issues, F2i has joined to the PRI – Principles of Responsible Investment since 2019, the GRESB since 2020, and the UNGC – United Nations Global Compact since 2023.
2023 Scores:
Policy, Governance and Strategy:
83/100
Benchmark 62/100
Infrastructure:
86/100
Benchmark 81/100
Confidence-building Measures:
100/100
Benchmark n.d.
Management component
29/30
Benchmark 28/30
The first Communication on Progress has been drafted in 2024.
VALUES
F2i is committed to operating with diligence, fairness and transparency in the interest of its investors and the integrity of the markets. Our conduct is based on the fundamental principles of legality, loyalty and good faith. Compliance with standards, ethical rules and transparency in business management is not only an essential requirement but also a competitive advantage.THE 5 PRINCIPLES OF F2I'S INTERNAL CODE OF CONDUCT
RESPECT
TEAMWORK
EXCELLENCE
INTEGRITY
SUSTAINABILITYTHE RESPONSIBLE INVESTMENT PROCESS
We believe that properly managing the risks and opportunities of environmental, social, and governance issues throughout the investment cycle, can reduce business and financial risk and improve the results of our portfolio.
F2i adopts a fully integrated ESG approach within the investment process, summarized in the following phases:
SCOUNTING AND SCREENING
ESG issues are analyzed right from the initial scouting phase of the potential investment, the process involves the elimination of the potential investments that fall under the scope of the so-called ‘excluded sectors’ and of any investments having an excessive negative impact with respect to ESG issues (negative screening), while investments that can make a positive contribution (positive screening) in ESG terms are favored.
ESG DUE DILIGENCE
As part of the analysis of the potential investment, ESG issues are identified and assessed, through a dedicated Due Diligence process. The results of the ESG Due Diligence are submitted to the attention of the ESG Committee and summarized in the Investment Memo to the Investment Committee and Board of Directors as part of the investment approval process, so that the main sustainability profiles can become an integral part of F2i SGR’s decision-making process on investments.
ESG RATING
At the investment stage, the Risk Manager conducts an independent analysis of ESG risks based on relevant information related to the ESG positioning of the target asset, to:
- ensure that the investments made by the funds managed comply with the regulatory framework and the ESG Policy in force;
- identify, manage, and mitigate any financial and reputational risks that may arise from investments exposed to ESG risks.
ACTION PLAN
If an equity investment presents critical ESG issues, the ESG Committee may propose a definition of an Action Plan to be agreed upon with the management of the target company within six months of completing the investment to gradually remedy the main gaps with respect to ESG issues.
ENGAGEMENT AND MONITORING
After the investment, F2i continues, through the engagement activity to steer its portfolio companies towards a virtuous path of ESG KPI improvement. For this purpose, the variable component of the remuneration of the CEOs of the portfolio companies in the Funds' portfolio is related to the achievement of ESG objectives.
REPORTING
Finally, the results of ESG performance are included in the following documents:
- Consolidated Sustainability Report;
- Fund Reports, which include the annex relating to the periodic disclosure for those Funds that promote environmental and social characteristics;
- PAI Statement, which also includes the PAI Indicators.
F2I’s ESG PATH
2018
Adoption of the first ESG Policy
Definition of the first three-year ESG Plan
Establishment of the ESG Committee
2019
Subscription to UN PRI (Principles for Responsible Investment)
Inclusion of ESG factors in core procedures
Publication of the first Sustainability Report
2020
Launch of the Fondo per le Infrastrutture sostenibili, ex art 8+ SFDR with an objective of sustainable investment
2021
ESG Policy (update)
Publication of the first Principal Adverse Impacts (PAI) Statement
Three-year ESG Plan (in update)
Ania-F2i Fund, ex art 8 SFDR
First participation in GRESB
Adoption of Diversity & Inclusion Policy (D&I)
2022
Launch of the Debt Fund (IDF1), ex art 8 SFDR
Establishment of the ESG Sustainability Business Unit
2023
ESG Policy (in update)
ESG Monitoring and Reporting Procedure
Expanded the responsibilities of the Control and Risk Committee to include sustainability issues, renamed the Control Risk and Sustainability Committee (CCRS)
ESG Action Plan
Participation in the United Nations Global Compact (UN GC)
Launch of F2i – Rete Digitale, ex art 8 SFDR
FUNDS UNDER MANAGEMENT
F2i's assets under management reached over 8 billion euros through the Management Funds. The following is a detailed description of each fund's portfolio and the environmental and social features promoted by the SFDR Article 8 funds.
FONDO I (F2i – Fondo Italiano per le Infrastrutture)
Established in 2007, with a commitment of €1.9 billion; at the end of 2017, after 10 years, the assets of the Fund I portfolio were moved into Fund III considering there were further opportunities for growth.
Fondo II (F2i – Secondo Fondo Italiano per le Infrastrutture)
Established in 2012, with a commitment of € 1.2 billion; the fund is approaching maturity (2025), therefore it has already started the divestment of some assets.
Fondo III (F2i – Terzo Fondo per le Infrastrutture)
Established in 2017, it has invested its entire commitment of €3.6 billion and is it is the main fund under management in terms of size.
Fondo IV (FONDO ANIA-F2I)
Established in 2019, with a commitment of € 516 million, raised from the leading Italian insurance institutions and other Italian pension funds, it invests in small and medium-sized Italian infrastructure.
The financial product promotes the following characteristics (art 8 SFDR):
Environmental
(i) climate change mitigation;
(ii) pollution prevention and reduction;
Social
(i) non-discrimination;
(ii) workplace safety.
Fondo V (F2i – Fondo per le infrastrutture sostenibili)
Established at the end of 2020, it completed the fundraising phase in 2023 reaching a commitment of € 1,562.8 million, exceeding the target (€ 1.5 billion).
The financial product promotes the following characteristics (art 8+ SFDR):
Environmental:
(i) climate change mitigation;
(ii) pollution prevention and reduction;
Social:
(i) non-discrimination;
(ii) workplace safety;
(iii) has a minimum quota of sustainable investments aligned with the Taxonomy.
Fondo VI (F2i – Rete digitale)
Established at the end of 2023, it raised € 0.9 billion after only a few months from the start of marketing activities, finalized to be invested with other institutional investors in FiberCop, Tim's national fixed-line network, whose closing was carried out in July 2024.
The financial product promotes the following characteristics (art. 8 SFDR):
Environmental:
efficient and sustainable use of energy sources;
Social:
enabling widespread access to data and new technologies.
Debt Fund (Infrastructure Debt Fund I, IDF1)
Established in 2021, with a target of €500 million, it is composed of two segments, one focused on Italy and the other on Europe. The fund completed the 2024 fundraising with a commitment of € 500.8 million.
The financial product promotes the following characteristics:
Environmental:
(i) efficient and sustainable use of energy sources;
(ii) efficient use of raw materials and pollution reduction.
Social:
(i) supporting sustainable urbanization;
(ii) supporting competitiveness and quality of services in extra-urban areas;
(iii) enabling widespread access to data and new technologies.