We take pride in our pioneering role in spearheading the implementation of ESG (Environmental, Social, and Governance) practices within the private equity sector in Israel. Fortissimo is committed to operating with the upmost integrity and to working hard to embed its ESG and responsible investing program during the entire investment process, from pre- to post-investment monitoring, value creation, and reporting.
ESG Report 2023
Our latest ESG Report for 2023 showcases our integrated approach, incorporating ESG considerations into every aspect of our investment strategy and internal fund operations. From meticulous due diligence processes to proactive engagement with our portfolio companies, our dedication to ESG principles is embedded in our organizational culture, guiding our decision-making and operational practices towards sustainable and ethical outcomes.
UN Principles and Global Compact
Fortissimo abides by the UN Principles for Responsible Investing and the UN Global Compact’s ten principles and is committed to integrating these principles into its activities in order to align Fortissimo’s interests with the interests of wider stakeholders.
Investment Strategy
We seek to invest in companies that among other factors we believe can positively contribute to shaping a more efficient and sustainable economy or where we can add value in part by transitioning a business to becoming more ESG friendly. We shy away from investing in businesses that could be deemed to harm the environment.
Responsible Investing
At Fortissimo, we focus on ensuring high environmental, social and governance (ESG) standards across our portfolio and operations. We believe that improving ESG performance is not just a good idea but in actuality will help ensure the long-term success of a business. To that end, we evaluate potential ESG issues during our due diligence process. We then work to facilitate the implementation of ESG policies and procedures at our portfolio companies. These include exploring ways of reducing carbon emission, maintaining a safe, healthy and comfortable work environment and placing the proper corporate governance and controls in place.
GP Initiatives
To maximize our ESG impact on our portfolio companies, we believe we must lead by example. As a fund, we have implemented ESG policies, and we monitor their success. In particular we have employed the following ESG initiatives:
Environmental
At the fund level, we began implementing several environmental initiatives in our office, including significantly reducing the use of disposable cutlery, eliminating the use of plastic water bottles and encouraging the reduction of carbon footprint while commuting by using public transportation, carpooling or the use of hybrid and electric vehicles.
We have requested that all portfolio companies implement similar policies and we have appointed an ESG representative to meet with each company to assist with such implementation.
Social Responsibility
Our goal is to create great experiences in our workplace, at our portfolio companies and in our surrounding community. It is our utmost priority to protect the safety of our employees, suppliers and business partners by creating a healthy, financially stable and supportive working environment for all regardless of background, ethnicity or faith. Diversity, acceptance and respect is encouraged.
We and our portfolio companies participate in the Tmura initiative (the Israeli public service venture fund; www.tmura.org), that allocates stock options to charity, yielding significant sums to the underprivileged upon an exit event. We also encourage volunteering at non-profit organizations to assist the less privileged.
Governance
We recognize the importance of effective governance to a company’s health and longevity. We implemented a ‘Code of Conduct’ to better establish formal expectations of employees and company behavior. Additionally, we implemented anti-corruption and insider trading policies and host employee training sessions on these and other relevant topics annually.
We seek to ensure that there are proper checks and balances in our decision-making processes, at our Investment Committee and at the board level of our portfolio companies. Our ESG initiatives are communicated to all employees and the policy is constantly monitored and if need be, updated to ensure that Fortissimo’s commitment to ESG remains at the forefront of the PE industry in Israel.
