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Groupama Asset Management

PRI reporting framework 2017

You are in Direct - Listed Equity Active Ownership » Engagement

Engagement

Overview

LEA 01. Description of approach to engagement

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate whether your organisation has a formal engagement policy.

01.2. Indicate what your engagement policy covers:

01.3. Attach or provide a URL to your engagement policy. [Optional]

01.4. Provide a brief overview of your organization’s approach to engagement

Groupama AM believes that engagement means a regular and open dialog with companies, in which investors ask companies to improve their ESG performance. Groupama AM engagement process is structured and systematic.

- Dialog with companies : Financial/ESG analysts are meeting with many companies during the year, top management, investors relations. Meetings are prepared by the analysts and the fund manager (if the company is currently held in portfolios). It enables us to determine which are the main ESG subjects we need to discuss with the management. Companies are informed during the meeting if they are on a list of exclusion because they face recurrent and material controversies. All meetings are registred in a file, where each analyst specify wich questions were raised and what were the main subjects of dialog. This file enables us to have a structure process.

- A stringent voting policy since 2001. The voting policy is updated each year. Before voting in AGM, Groupama AM may discuss the resolutions presented with the company.

01.5. Additional information [optional]


LEA 02. Reasoning for interaction on ESG issues (Not Completed)


Process

Process for engagements run internally

LEA 03. Process for identifying and prioritising engagement activities

New selection options have been added to this indicator. Please review your prefilled responses carefully.

03.1. Indicate whether your organisation has a formal process for identifying and prioritising engagement activities carried out by internal staff.

03.2. Describe the criteria used to identify and prioritise engagement activities carried out by internal staff.

03.3. Additional information. [Optional]

The choice of companies and subjects of dialog with a company is made upon several criteria. The two main drivers are the level of exposure we have in a company, wich determines the level of risk this company may induce on the systematic risk of the portfolio and the materiality of ESG factors. Groupama AM specificity is to have developped a strong integration policy. The materiality of ESG factors is therefore decisive to prioritize our engagement activities.


LEA 04. Objectives for engagement activities

New selection options have been added to this indicator. Please review your prefilled responses carefully.

04.1. Indicate if you define specific objectives for your engagement activities.

04.2. Indicate if you monitor the actions that companies take following your engagements.

04.3. Indicate whether your organisation defines milestones and goals for engagement activities carried out by internal staff.

04.4. Indicate if you do any of the following to monitor and evaluate the progress of your engagement activities carried out by internal staff.

04.5. Additional information. [Optional]

We are following the evolution in the ESG performance of each company through our screening approach. As we are regularly meeting with the same companies, we revise and adapt our ESG demand according to their progress.


General processes for all three groups of engagers

LEA 09. Share insights from engagements with internal/external managers

09.1. Indicate if insights gained from your engagements are shared with your internal or external investment managers.

Type of engagement

Insights shared

Individual/Internal staff engagements

09.2. Additional information. [Optional]

Our ESG meetings have an influence on the ESG analysis of a company. Dialog have an influence on investment decisions as it will influence the rating and the fundamental analysis of an issuer. This influence may be even more direct because some of our meetings with company are held with portfolio managers, and the reaction of the company to our ESG demand may have a direct impact on their investment decisions.


LEA 10. Tracking number of engagements

10.1. Indicate if you track the number of engagements your organisation participates in.

Type of engagement
Tracking engagements

Individual / Internal staff engagements

10.2. Additional information. [OPTIONAL]

Each of our engagement action is registred. Each time a company is met, we register the following information : name and position of the person met, ESG demands made, response of the company during the meeting, type of reaction expected after the meeting.

This tracking system is updated after each meeting. This file is accessible to the all analysts and investment team. The accuracy of the information is verified once a year when the information is used for the reporting.


Outputs and outcomes

LEA 11. Number of companies engaged with, intensity of engagement and effort

11.1. Indicate the amount of your listed equities portfolio with which your organisation engaged during the reporting year.

Number of companies engaged

(avoid double counting, see explanatory notes)

Proportion (to the nearest 5%)
Specify the basis on which this percentage is calculated

Individual / Internal staff engagements

40 Number of companies engaged
19.7 Proportion (to the nearest 5%)

Specify the basis on which this percentage is calculated

11.2. Indicate the proportion of engagements that involved multiple, substantive and detailed discussions or interactions with a company during the reporting year relating to ESG issue.

Type of engagement

% Comprehensive engagements

 

 

Individual / Internal staff engagements

11.5. Additional information. [Optional]


LEA 12. Engagement methods

12.1. Indicate which of the following your engagement involved.

12.2. Additional information. [Optional]


LEA 13. Engagements on E, S and/or G issues (Not Applicable)


LEA 14. Companies changing practices / behaviour following engagement

14.1. Indicate whether you track the number of cases during the reporting year where a company changed its practices, or made a formal commitment to do so, following your organisation’s and/or your service provider's engagement activities.

14.2. Indicate the number of companies that changed or committed to change in the reporting year following your organisation’s and/or your service provider's engagement activities.

Number of company changes or commitments to change

Individual / Internal staff engagements

2

14.3. Additional information [Optional].

Two of the companies figuring on our ESG controversies list that we met during the year, informed us that they were aware of the problems we were raising and that they were enhancing their internal process. Their goal is to make impossible the repetition of the facts that leads us to add them on our list. One company was removed from our controversies list whereas the other was maintened because improvements were not sufficient.


LEA 15. Examples of ESG engagements

15.1. Provide examples of the engagements that your organisation or your service provider carried out during the reporting year.

Topic or ESG issue
          ESG controversies
        
Conducted by
Objectives

The objective is to inform the companies that they appear on a ESG controversy list when Groupama AM analysts are meeting with them.

Scope and Process

All companies that are deemed facing recurrent and severe ESG controversies, and that are added on Groupama AM ESG controversies list.

 

Outcomes

The reaction of the company in a one to one meeting is an important element in our assessment.

15.2. Additional information. [Optional]


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