Our sustainable investment methodology
Our methodology relies on a combination of normative and sectoral exclusions, proprietary rating, and engagement processes specific to each strategy.
ESG assessment of investments
We adopt a Best in Class approach to the ESG assessement of our investments based on environmental (E), social (S) and governance (G) critera, aiming to measure the extra-financial caracteristics of these players.
For our Liquid Credit platform, a best-in-class ESG rating methodology has been developed, enabling us to assign a rating to the issuers we hold. The ratings awarded are an integral part of the investment process for funds that meet the requirements of Articles 8 and 9 of the European SFDR (Sustainable Finance Disclosure Regulation).
Within our Real Asset Financing platform, more specific approaches are used. These approaches favour assets that contribute to the green transition.
Environmental criteria (E)
The environmental criteria (E) cover themes such as climate risks, natural resources scarcity, pollution and waste, biodiversity, circular economy, and environmental opportunities.
Social criteria (S)
The social criteria (S) include 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.
Governance criteria (G)
The governance criteria (G) encompass 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