First, Groupama AM's innovative approach is to integrate ESG analysis into financial analysis.Groupama AM believes the best way to take into account ESG factors is through integration. Financial and non- financial analysis is now made by the same person : all analysts are able to do both financial and ESG analysis. Non- financial analysis may have a strong impact on both the equity recommendation and/or the credit recommendation. For example, a very negative rating on corporate governance prohibits the analysts to have a "BUY" recommendation and a "POSITIVE" perspective for the credit.
The objective for 2017 is to complete the transmission to financial analyst the ESG knowledge. For that, half-day ESG training sessions are organized weekly during all the year. The former ESG analysts have created the training modules based on our in-house methodolgies. From 2017, the former ESG analysts (who will become also financial analysts), will keep a role of "animation" of each E, S and G pilar. This organization was defined to be sure that integration will not lead to a loss in our ESG expertise but will lead to a better integration of ESG issues into corporate analysis.
Second, Groupama AM has been working for years on an in-house human capital methodology. It is an ongoing process : this year we have adjusted some HR indicators thanks to the ESG internal training sessions which allowed the intenses exchanges between analysts. We also developped a new in-house societal issues analysis methodology.
Third, Groupama AM worked a lot this year on the carbon footprint of its corporate fixed income assets under management. As a large part of our assets are fixed income, we thought it was relevant not to measure only the carbon footprint of equity portfolios but also to work on corporate fixed income one. Related to this topic we have developed this year an in-house"Green bonds" methodology. This approach aims to assign an assessment to each green bond considering several criterions. Therefore the rating of the green bond can be diiferent from the issuer's one.