Oristan’s overall approach to responsible investment is integrating environmental, social, and governance (ESG) factors into its investment decision-making process. This means that Oristan considers the impact of its investments on the environment, society, and corporate governance when making investment decisions. The limited investment scope of Oristan provides many constraints, but Oristan is committed to promoting responsible investment where possible. The origin of the firm commitment to responsible investing is rooted in the personal beliefs of shareholders and managers of the company. First, the firm’s founders, Ran Fridrich and Hemi Raphael, started Ellomay, an integrated developer owner and operator of renewable energy projects. Investment committee members also have a deep conviction that integrated ESG factors is a means to improve mid to long-term fund performance. Many ESG topics, including fossil fuel and chemical companies, are considered while making investment decisions. The firm responsible investment governance mandates that one investment committee member and board member is also the UN Principal responsible investment (UN PRI) representative.
Oristan’s responsible investment approach is based on the following principles:
- Integration: ESG factors are integrated into all aspects of Oristan’s investment process, from the initial screening of potential investments to the ongoing monitoring of portfolios.
- Transparency: Oristan is transparent about its responsible investment policies and practices.
Oristan believes that its responsible investment approach is a way to generate attractive investment returns while positively impacting society. Here are some of the specific ESG factors that Oristan considers when making investment decisions:
- Environmental factors: These include factors such as climate change, fossil fuel use, water scarcity, and chemical pollution.
- Social factors: These include factors such as human rights, labour practices, and diversity and inclusion.
- Governance factors include factors such as corporate transparency, accountability, and ethics.
Oristan believes these ESG factors are integrated within the fundamental approach investment philosophy core to the firm.
The firm is committed to responsible investment and believes it suits its investors, employees, and the environment. The fund will continue to progress on these issues in the coming years.
Responsible Investment Overall Approach (pdf version)