1. Shares and corporate bonds
Approach adopted by Ircantec
• Reference framework
Ircantec will assess companies’ social responsibility in particular by examining:
- their ratification of the UN Global Compact; those that have not ratified must be able to explain their position,
- their participation in the economic development of the regions where they are located,
- their remuneration policy, which should allow their employees to enjoy a satisfactory standard of living,
- measures taken concerning the health and safety of workers, the promotion of social dialogue and employee training.
In principle, no industry is excluded from the investment universe.
This rule applies in the following areas (non-exhaustive list):
. forced labour and child labour,
. violation of the freedom of association,
. major industrial accidents and environmental pollution
attributable to the company’s negligence,
. corruption, money laundering and support for authoritarian
The following companies will be excluded:
- companies that manufacture and market weapons prohibited by international conventions,
- companies that are guilty of failing to abide by the following fundamental principles:
. Universal Declaration of Human Rights,
. ILO declaration on Fundamental Principles and Rights at Work,
. Rio declaration on the environment and development,
. UN conventions (in particular anti-corruption).
- Companies with heavy coal exposure.The exclusion criteria are as follows:
. For mining companies, excluding any companies which coal-related turnover represents more than 1% of the overall market share,
. For energy-producing companies, the exclusion of any companies which coal-fired energy mix is greater than 30% or which carbon intensity exceeds 500 gCO2 / kWh,
. For the two sectors concerned, the turnover linked to coal must not exceed 20% of the total turnover.
However, there may be agreement on a case-by-case basis, particularly if the company demonstrates a strong commitment to energy transition. For example, a GreenBond issued by a company meeting the criteria for divestment can be subscribed as it allows an improvement of the energy mix of the activity.
• Environmental, Social and Governance (ESG) selection
The Board requires that management companies adopt «Best in class» investment processes based on the selection of the top-rated companies in each sector in ESG areas. More specifically, Ircantec would like to select companies that:
- focus on human aspects and foster social progress,
- are concerned with the preservation of the environment and sustainable local development,
- have exemplary governance.
For the Ircantec Board of Directors, these values are developed as follows:
Focus on people and promote social progress
To assess the degree of companies’ compliance with human rights and the measures they take to promote
social progress, Ircantec refers to:
- companies’ respect for fundamental social principles,
- non-discrimination in all its forms, in particular with respect to the elderly and women,
- freedom of opinion and expression, including the right to organise,
- human rights at work.
The Institution is also particularly attentive to the issue of work and employment in its different dimensions and
favours companies that:
- respect the fundamental rules of labour law and social partners,
- contribute to the development of employment both quantitatively and qualitatively (promotion and career
development, male/female gender equality, refusal of child labour, etc.),
- have pre-emptive employment strategies (lifelong learning, development of acquired experience, retraining,
- have specific projects that promote the development of employment (research and development).
Preserving the environment and sustainably local development Ircantec will assess the environmental responsibilities of companies by taking into account the environmental impact of their activities and their production process, including the following aspects:
- the fight against climate change and the control of CO2 emissions,
- energy efficiency,
- prevention of industrial accidents,
- management of water resources and waste treatment,
- the development of «green jobs».
Establishing exemplary governance Ircantec intends to determine its choices by evaluating companies with respect to several major themes:
- the existence and respect of rights of the various control bodies,
- independence and competence of directors,
- transparency of executive compensation,
- internal control and conflict prevention mechanism,
the fight against corruption and laundering, business ethics,
- transparency concerning the activity, financial and nonfinancial situation as well as development strategy.
2. Sovereign bonds
The identity and values of the Institution tend to lead it towards supporting public policies that plan over the long
term to ensure resources for future generations and place public interest at the centre of their ambition.
Approach adopted by Ircantec:
The Ircantec Board of Directors has decided to focus onStates that:
• promote social progress
Ircantec will assess the social dimension of a State especially with reference to the following aspects:
• implement environment-friendly policies
The Institution is particularly sensitive to the following environmental aspects:
- protection of natural resources,
- the fight against global warming,
- protection of biodiversity.
• have exemplary governance
Ircantec pays particular attention to the actions implemented by States in terms of:
- fighting corruption,
- freedom of expression,
- solidarity between countries.
• have ratified international treaties and conventions (including prohibited weapons).
3. Real Estate
SRI principles on property investments are applied in the two following domains:
• social – by investing in Ehpad1 or nursing homes as well as in student halls of residence (in particular in
the form of «Club Deals» or open funds, depending on opportunities),
• environmental – through:
- contracts to improve office buildings or residential buildings,
- the scheme’s sustainable development policy, for existing assets, aims to improve the environmental quality
of buildings and the quality of life for tenants.