IDI | IDIP FP | Holding Companies | France | Sustainability / ESG

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IDI ^CR	Bloomberg IDIP FP
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Sustainability score

Company (Sector)
2.9 (5.5)

Sustainability is made of analytical items contributing to the E, the S and the G, that can be highlighted as sustainability precursors and can be combined in an intellectually acceptable way. This is the only scale made available

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	Score	Weight

Governance
Independent directors rate	5/10	25%	More ...
Board geographic diversity	0/10	20%
Chairman vs. Executive split		5%

Environment
CO² Emission	1/10	25%	More ...
Water withdrawal	1/10	10%

Social
Wage dispersion trend	0/10	5%	More ...
Job satisfaction	3/10	5%
Internal communication	10/10	5%

Sustainability score

2.9/10

100%

Sustainability matters

AlphaValue’s scoring model was previously deemed inapplicable to IDI, as several data inputs necessary for the computation of Environmental and Social scores did not pertain to holding company-type structures such as IDI. However, IDI has demonstrated a clear commitment to ESG principles, notably with the creation of an ESG Committee within its supervisory board in 2022. The HoldCo places significant emphasis on integrating sustainability considerations within its investment strategy, promoting responsible practices across its portfolio companies.

By 2024, the majority of IDI’s holdings are expected to have completed their first carbon footprint assessments, accompanied by ESG reporting. This will enable better tracking of IDI’s evolving ESG metrics and further embed sustainability into its operations and investments.

Environmental score

Company (Sector)
1.0 (3.7)

Data sets evaluated as trends on rolling calendar, made sector relative

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Parameters	Score	Sector	Weight
CO² Emission	1/10	5/10	30%
Water withdrawal	1/10	3/10	30%
Energy	1/10	4/10	25%
Waste	1/10	3/10	15%
Environmental score	1.0		100%

Environment matters

AlphaValue’s automated Environment scoring model was previously not applicable to IDI, as several data inputs necessary for the computation of the score did not pertain to holding company-type structures such as IDI. However, this is set to change as IDI’s ESG strategy now incorporates environmental considerations. The company actively works to embed sustainable practices within its portfolio, encouraging investee companies to reduce their environmental impacts. With the implementation of ESG reporting and the majority of the holdings expected to complete their first carbon footprint assessments by 2024, IDI will soon meet the criteria for a score to be applied.

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Environmental metrics

Energy (GJ) per €m in capital employed	CO² tons per €m in capital employed	Cubic meter water withdrawal per €m in capital employed	Tons waste generated per €m in capital employed

IDI Other Financials

Sector figures

Company	Environment score	Energy (total, in GJ)	CO2 Emissions (in tons)	Water Withdrawal (in m3)	Waste (total, (in tons)

Ackermans & van Haaren	2/10		754,749
Adyen	3/10	n/a	10,168	n/a	n/a
Amundi	9/10	56,282	6,392	32,085	161
Bolloré	10/10	1,066,597	56,876	242,705	22,515
Bouygues	6/10	42,149,000	2,300,000	1,000,000
Corporacion Financiera Alba	10/10	34,538	1,972	37,045	373
D’Ieteren Group	6/10	1,971,982	127,460		163,955
Deutsche Beteiligungs AG^BH	4/10		3
Deutsche Boerse	6/10	311,256	8,556	74,633	20
DWS	6/10	61,308	1,497
EdenRed	4/10	44,356	7,812	44,166	468
En+	2/10	353,000,000	53,800,000	1,035,300,000	225,000,000
Eurazeo	2/10	9,827,411	832,409	36,311,694	40,627
Euronext NV	4/10	23,522	6,714
Exor	1/10		351,370
GBL	4/10		171
Hal Trust	1/10
HBM Healthcare Investments^BH	1/10
Heineken Holding	8/10	7,009,000	1,200,000	86,000,000	5,092,000
IDI^CR	1/10
Industrivärden	10/10	3,490,125	291,000	2,128,125	85,125
Investor	10/10	19,224,680	191,357	11,137,056	397,752
Kinnevik Investment	6/10	688	229,124	n/a	n/a
Leonteq AG	6/10	12,294	321
London Stock Exchange Group	4/10	593,842	73,836	1,166	185
Nexi	5/10	240,602	11,573	605,600	1,319
Partners Group^BH	4/10		1,581	2,374,472
Pluxee	4/10	72,379	3,759	n/a	n/a
Porsche SE	1/10
Prosus	5/10	1,850	18,743	1,074	23
Sonae	8/10	3,023,469	157,568	2,232,119	110,054
Swissquote Group Holding	7/10	12,751	113	n/a	276
Tessenderlo Group	5/10	15,647,684	900,413	18,023,972	213,499
Vivendi	10/10	458,424	24,512	20,000	10,007
VZ Holding^BH	2/10		461,000
Wendel	4/10		116
Wise	4/10	12,565	60,680	n/a	227
Worldline	4/10	278,094	9,109	17,372	2,092

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Social score

Company (Sector)
4.4 (5.6)

Social matters

Similarly, Social scoring, which was also previously deemed inapplicable, is becoming relevant as IDI has advanced its Social impact agenda. The company promotes equitable and responsible policies within its operations and those of its investee companies. These initiatives underline IDI’s evolving commitment to broader ESG principles, moving beyond traditional holding company constraints.

Quantitative metrics (67%)

Set of staff related numerical metrics available in AlphaValue proprietary modelling aimed at ranking on social/HR matters

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Parameters	Score	Weight
Staffing Trend	3/10	20%
Average wage trend	8/10	35%
Share of added value taken up by staff cost	1/10	25%
Share of added value taken up by taxes	1/10	20%
Wage dispersion trend	0/10	0%
Pension bonus (0 or 1)	0
Quantitative score	3.9/10	100%

Qualitative metrics (33%)

Set of listed qualitative criterias and for the analyst to tick

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Parameters	Score	Weight
Accidents at work	10/10	25%
Human resources development	5/10	35%
Pay	0/10	20%
Job satisfaction	3/10	10%
Internal communication	10/10	10%

Qualitative score	5.6/10	100%

Sector figures

Company	Social Score	Quantitative score	Qualitative score	Staffing

Prosus	7.8	7.3	9.0	29,993
Wise	7.7	8.5	6.2	7,457
Worldline	7.3	6.9	8.0	18,549
Kinnevik Investment	7.1	5.9	9.7	46.0
Adyen	7.1	7.1	7.2	4,570
Swissquote Group Holding	7.0	6.1	9.0	1,191
Amundi	6.8	5.6	9.3	5,650
Bouygues	6.5	6.9	5.9	201,950
London Stock Exchange Group	6.5	5.2	9.3	28,654
Investor	6.2	7.3	4.1	17,912
Heineken Holding	6.2	5.4	7.9	89,710
Sonae	6.2	6.6	5.4	53,972
Leonteq AG	6.1	4.5	9.3	577
Ackermans & van Haaren	6.0	5.5	7.2	22,066
Deutsche Beteiligungs AG^BH	6.0	5.3	7.6	111
Tessenderlo Group	6.0	5.3	7.6	7,241
D’Ieteren Group	6.0	5.2	7.5	31,521
Industrivärden	5.9	4.0	9.7	15.0
Pluxee	5.8	7.5	2.3	5,877
Exor	5.8	4.6	8.3	23.0
EdenRed	5.7	5.3	6.6	12,435
Deutsche Boerse	5.6	4.3	8.3	15,400
Vivendi	5.6	4.4	8.0	2,675
Euronext NV	5.3	3.4	9.3	2,397
DWS	5.3	4.1	7.9	4,500
HBM Healthcare Investments^BH	4.9	2.5	9.7	9.00
Hal Trust	4.8	6.1	2.1	33,133
Wendel	4.7	5.7	2.7	91,281
Porsche SE	4.6	4.4	5.1	45.0
En+	4.6	4.7	4.5	88,272
Eurazeo	4.5	5.0	3.7	463
Nexi	4.3	3.7	5.5	11,046
Partners Group^BH	4.2	5.7	1.3	2,090
GBL	4.0	4.5	3.0	13,630
Corporacion Financiera Alba	3.5	4.0	2.7	205
Bolloré	3.1	3.4	2.4	7,485
VZ Holding^BH	2.4	3.6	0.0	0.00

MORE DATA

Sustainability / ESG by AlphaValue:

Doubt driven, focused on dynamics

AlphaValue was set up in 2009 as an ESG native firm: since inception, no research could be published without filling up the ESG relevant items. ESG has always been there as a natural building block of the research effort.

Without much pretence, AlphaValue has accumulated 11 years of proprietary, practical data in a consistent way that has been made to “talk” with financial data. The efforts have been aimed at solving the main conundrum of ESG analytics: avoiding useless and noisy data. AlphaValue ESG data is intimately connected to the fundamental research work and its continuous updating process. In other words, AlphaValue ESG data can be made to resonate at will in terms of financial implications for those investors with the willingness to do so.

Over the last 3 years, this data, or rather the dynamic of this data, has been put at work so that it impacts directly and consistently on valuations across AlphaValue’s 450 + stocks universe. This is considerable progress vs. the dominant “consumption” of ESG raw data: ESG-type conclusions are sitting next to valuation fundamentals but hardly any investor is in a position to bridge effectively the two in a consistent and repeatable way. It takes more than a spreadsheet to get stable and auditable results that work 100% of the time.

AlphaValue reckons that it currently is the only equity research provider in Europe to have reached this stage: a perfectly smooth on-boarding of ESG data, on a continuing basis, impacting valuation fundamentals day and night.

This is available on every stock, every sector, every stock selection, every day.

Heretical ESG opinions?

ESG is a contradiction in terms. Without a good Governance, the Social and Environment items will never show progress. Social is for stakeholders and thus unlikely to please shareholders. The long-term view that good pay/working conditions are ultimately good for shareholders is, like any promise, better left to those who want to believe in it. It does not work for normal investment horizons

Environmental gains will not happen without good Governance but this is not enough as environmental progress will not happen without coercion from governments/supra-governments. There is no reason why a corporate will spend more for a possible collective gain tomorrow when it can have better returns now for its shareholders.

The environment is a cost of massive complexity and a universal one as data improves and allows for intricate tracking of what corporates are up to. There is no practical way a corporate can be valued through a web of changing definitions of environmental data. AlphaValue holds the view that all corporates are made to pay through lower GDP growth expectations resulting from friction costs. The only dimension that really matters from an investment perspective is whether a given corporate makes an extra effort vs. peers. A good ‘E’ rating shall not be driven by absolute levels but by the dynamic of emission controls relative to peers. Dumping cement stocks because they spit out carbon is a narrow view of what ESG implies.

Sustainability scores only

AlphaValue always refused to supply a pecking order of its coverage along some improbable ESG scale. It just does not make sense to mix opposing signals in a single ranking.

Sustainability is a different proposition where analytical items contributing to the E, the S and the G can be highlighted as sustainability precursors and combined in an intellectually acceptable way. This is the only scale made available by AlphaValue.

Sustainability impacts target prices

From 1-12-2020, AlphaValue substituted sustainability metrics for its Governance and Social ones when it comes to impacting valuations;

Indeed since 2019, all DCF (or DCF equivalents for Financials) have been impacted by Governance and Social metrics to connect directly ESG-type findings into share price targets and bring consistency across the board. The impact is driven by adjusting the small ‘g’ conventionally used to assess the growth to infinity. This is being tweaked to recognise, say, that good governance ultimately pays off.

The same procedure is now stemming from Sustainability metrics instead.

For the record, this has been made possible as AlphaValue has finalised its proprietary E scoring, now extended to 4 items (GHG, Waste, Water, Energy) on which a degree of data stability seems to emerge.