Screenings criteria are established in 4 different ways:
- Applying our corporate exclusion policies (controversial weapons and "essential food" commodities). A list of companies involved in cluster weapons, depleted uranium, white phosphorus and anti-personal mines manufacturing or distributing is put together by our SRI team with the help of external ESG data provider and is quarterly updated.
- Applying criteria to track down Child labor. Child labor is examined directely in the company or through its suply chain. The information is updated on a monthly basis.
- Applying screenings based on major breaches of UN Global Compact principles. In order to implement this screening we use a serie of controversy indicators which scales the number, the impact and the seriousness of incidents a company is going through. This screening can be applied through all ESG concerns or through specific E, S or G issues. This information is weekly updated.
- Applying screenings using our proprietary ESG scores. Lombard Odier has created an in-house expertise to build customized ESG scores and developed the capacity to test them. The score customization enables us to meet the client values in our scorings. Lombard Odier has set a standard ESG score using its propriatary ESG/CAR methodology to implement screenings when no client guidelines indicate a perticular scoring methodology. The score and its components are updated on a daily basis and enables Lombard Odier to propose different fields of screening: Environment, Social, Governance in a static view, or Consciousness, Actions and Results in a more dynamic view. Any combination of these fields is also available.
We notify clients when changes are made through monthly, quarterly or bi-annual SRI dedicated reports, including information related to scores, positive, negative and norm-based screening. Detailed comments are systematically provided with our reports, together with research and more detailed explanations about companies that went through significant changes.