Our sustainable investment methodology
To do so, we rely on a combination of normative and sectoral exclusions, methodologies adapted to each asset class, and engagement processes.
Specifically, we take a Best in Class approach to the ESG evaluation of issuers. This approach consists of evaluating companies according to the environmental (E), social (S) and governance (G) characteristics specific to their sector and selecting the best performers. The integration of these criteria into the financial analysis of a company gives a global vision of its strategy and its capacity to address environmental and social risks, but also to benefit from these issues.
the environmental criterion (E) which covers themes such as climate risks, natural resources scarcity, pollution and waste, biodiversity, circular economy, and environmental opportunities. It analyses the companies’ policy of waste management, reduction of greenhouse gas emissions, and whether it is focused on preventing all environmental risks in its activity.
the social criterion (S) which includes labour issues, the just transition, product liability, and data security risks. It takes into account the prevention of accidents and psychosocial risks, staff training, respect for employees’ rights, the organisation of the supply chain and the quality of the social dialogue
the governance criterion (G) which encompasses items relating to corporate governance and behaviour such as board quality and effectiveness, transparency, and business ethics. It includes for instance the independence of the Board of Directors, the gender diversity of the management team, the management structure, and the presence of an audit committee.
For more information on our methodology, please refer to our Handbook on Sustainable Investment