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Sycomore Asset Management

PRI reporting framework 2017

You are in Strategy and Governance » Innovation


SG 17. Innovative features of approach to RI

17.1. Indicate whether any specific features of your approach to responsible investment are particularly innovative.

17.2. Describe any specific features of your approach to responsible investment that you believe are particularly innovative.

- ESG risk premium: for over 9 years, ESG criteria have had a direct impact on company valuations across Sycomore AM's investment universe. Target prices through beta adjustment, required margins of safety and portfolio construction are all impacted by company ESG scores. 

- Centralised database: Sycomore AM's investment team uses a centralised database, which combines financial and ESG information within the same valuation tool.

- SPICE: The ESG analysis model is integrated into a "fundamental analysis" model named SPICE. SPICE is based on a stakeholder approach (Suppliers&Society, People, Investor, Customer and Environment) and integrates the analysis of the business model and economic fundamentals of the company within the Investor part. Thus, the result of the fundamental analysis, namely the SPICE rating, is a mix of ESG and financial analysis, which reflects our view of the company's ability to create value for its stakeholders over the long term. 

- Engagement monitoring tool: Sycomore AM integrated a centralised engagement database within its proprietary research and valuation tool, allowing any investment team member to record engagement actions and information on the goal of the engagement, the reaction of the company as well as progress achieved

- Controversies: Sycomore AM also developed its own proprietary tool for the analysis of controversies. Depending on their severity and recurrence, controversies impact company ESG scores. 

- Implementation of a Corporate Sustainable Development approach within Sycomore AM and publication of a sustainability report.

- ESG reporting across all funds: since January 2012, Sycomore AM has been publishing monthly ESG reports for its entire range of long only equity and corporate bond funds.

- Carbon footprinting: since January 2015, Sycomore AM communicates the carbon footprint of a wide range of its portfolios.

- Contribution to the Energy and Ecological Transition: since September 2015, Sycomore AM communicates the CEET of its green impact fund Sycomore Eco Solutions.

17.3. Additional information.