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Edmond de Rothschild Asset Management (France) (EDRAM)

PRI reporting framework 2018

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Organisational Overview
Basic information [OO 01 - 09] Asset class implementation gateway indicators [OO 10 - 12] Peering questions [OO LE 01 - INF 03]
Strategy and Governance
Investment policy [SG 01 - 04] Objectives and strategies [SG 05 - 06] Governance and human resources [SG 07 - 08] Promoting responsible investment [SG 09 - 11] Outsourcing to fiduciary managers and investment consultants [SG 12] ESG issues in asset allocation [SG 13 - 15] Asset class implementation not reported in other modules [SG 16 - 17] Innovation [SG 18] Communication [SG 19]
Indirect – Manager Selection, Appointment and Monitoring
Listed Equity and Fixed Income Strategies [SAM 01] Selection [SAM 02 - 03] Appointment [SAM 04] Monitoring [SAM 05 - 07] Outputs and outcomes [SAM 08 - 09]
Direct - Listed Equity Incorporation
ESG incorporation in actively managed listed equities [LEI 01 - 10] Implementation processes [LEI 01 - 10] (A) Implementation: Screening [LEI 04 - 06] (B) Implementation: Thematic [LEI 07] (C) Implementation: Integration of ESG issues [LEI 08 - 10] Outputs and outcomes [LEI 12 - 14]
Direct - Listed Equity Active Ownership
Engagement [LEA 01 - 14] Overview [LEA 01 - 02] Process [LEA 03 - 10] Process for engagements run internally [LEA 03 - 04] Process for engagements conducted via collaborations [LEA 05 - 06] General processes for all three groups of engagers [LEA 09 - 10] Outputs and outcomes [LEA 11 - 14] (Proxy) voting and shareholder resolutions [LEA 15 - 24] Overview [LEA 15] Process [LEA 16 - 20] Outputs and outcomes [LEA 21 - 24]
Direct - Fixed Income
ESG incorporation in actively managed fixed income [FI 01 - 13] Implementation processes [FI 01 - 03] (A) Implementation: Screening [FI 04 - 07] (B) Implementation: Thematic [FI 08 - 10] (C) Implementation: Integration [FI 11 - 13] Fixed income - Engagement [FI 15 - 17] Outputs and outcomes [FI 18 - 19]
Assurance
Assurance [CM1 01.1 - 01.7]
Export Public Responses
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You are in Direct - Listed Equity Incorporation » ESG incorporation in actively managed listed equities

ESG incorporation in actively managed listed equities

Implementation processes

LEI 01. Percentage of each incorporation strategy

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

01.1. Indicate (1) which ESG incorporation strategy and/or combination of strategies you apply to your actively managed listed equities and (2) the breakdown of your actively managed listed equities by strategy or combination of strategies (+/- 5%)

ESG incorporation strategy (select all that apply)

Percentage of active listed equity to which the strategy is applied
27 %
Percentage of active listed equity to which the strategy is applied
69 %
Percentage of active listed equity to which the strategy is applied (+/- 5%)
3 %
Percentage of active listed equity to which the strategy is applied
1 %
Total actively managed listed equities 100%

01.2. Describe your organisation’s approach to incorporation and the reasons for choosing the particular ESG incorporation strategy/strategies.

The choice of ESG incorporation strategies developed by Edmond de Rothschild Asset Management (France) was based on the three following drivers:

  • A combination of strong ESG and financial convictions with the view to enhancing the risk/opportunity analysis for each given stock
  • The desire to develop innovative analysis and investment tools for our clients that complement those already developed by Edmond de Rothschild Asset Management (France), with a single aim in mind: to offer high performance investment solutions that also support companies engaged in tackling sustainable development issues as they grow.
  • The capacity to adapt and meet new ESG-related demands from institutional clients including detailed specifications defined by the client.

​The ESG incorporation strategies decisions are ruled by three complementary parameters:

  • the development of Socially Responsible Investment (SRI) funds: these funds have a fully and systematic ESG integration, screening and/or ESG engagement within their investment process and seek for a positive impact on the sustainable development. In 2017, SRI equity strategies developed by Edmond de Rothschild Asset Management (France) apply to 2 open-ended funds (Edmond de Rothschild Euro Sustainable Growth and Edmond de Rothschild Tricolore Rendement), with cumulated assets of €1.654 billion under management, and two institutional mandatesaccounting for €2.030billion in AUM.
  • the mainstream integration of ESG risks and opportunities within the management of our assets: fed by the acquired experience cumulated with the development of SRI funds, true laboratory of our ESG expertise, this dimension is progressively implemented (within our asset classes, geographical coverage of investments or thematic management) and is focused on one key condition: the materiality of ESG factors.
  • The progressive development of investment strategies with the search of strong positive environmental and/or social impacts.
  • ​The implementation of ESG strategies is driven by an in-house ESG research and management team under the direct leadership of the CIO, and under the responsibility of the overall management teams targeted by, at least, one ESG incorporation strategy. Besides, this implementation is controlled by the Internal Control department.

 

The map of our ESG incorporation strategies applied is the following:

  • Screening alone (27% of our equities AUM):

Negative Screening: 100% of our equity assets under management apply a negative screening approach (used systematically across all the asset management company's funds) based on a list of banned countries + exclusion of companies whose business is in any way related to cluster bombs and anti-personnel mines, compliant  with the Oslo Treaty and the Ottawa Convention signed by France. Within the breakdown requested in LEI 01.1., 27% of our equity assets developed a negative screening only

 

  • Screening and integration (69% of our equity AUM):

39% of the AUM of our equity funds are involved in an implementation of ESG integration within the traditional financial analysis with the active involvement of the management teams on concrete ESG integration projects led by the in-house RI team.  

18% of the AUM of our equity funds apply a positive screening with ESG integration for 2 of our european mandates.

The Edmond de Rothschild Tricolore Rendement fund is an ESG engagement fund that combines an advanced ESG integration process based on an ex-post ESG screening with an ESG Engagement policy. This funds represents  13 % of our equity assets

 

  • Thematic and (negative) screening ( 3% of equity AUM):

Edmond de Rothschild Asset Management (France) manages a thematic equity fund on healthcare: Edmond de Rothschild Fund Healthcare (a sub fund of the Luxembourg-regulated SICAV which is approved by the CSSF, managed by Edmond de Rothschild Asset Management (Luxembourg) and for which Edmond de Rothschild Asset Management (France) is the sub investment manager). This fund invests at least 60% of its net assets in securities issued by companies operating the healthcare sector (biotechnology, pharmaceuticals, medical technology, medical diagnosis, hospital and healthcare center management, and other medical services) as well as companies marketing these products or services.

 

  • All three strategies combined ( 1% of equity AUM):  

One of our SRI equity funds, Edmond de Rothschild Euro Sustainable Growth  has developed a best-in-universe positive screening approach, but also integrates ESG within its financial analysis and focuses on the securities operating in the fields of the energy transition, health, research  digitization and sustainable mobility, allowing better synergies between financial and ESG beliefs. The portfolio managers search to invest in companies with positive environmental and social  impact like Wessanen, Naturex, etc

 

01.3. If assets are managed using a combination of ESG incorporation strategies, briefly describe how these combinations are used. [Optional]

1) Screening & ESG integration: The Edmond de Rothschild Tricolore Rendement fund combines an ex-post ESG analysis with an ESG Engagement policy, based on a structured and traceable investment process.

For the rest of the open-ended European equity funds, they apply a negative screening based on banned countries and the anti-personnel landmines / cluster bombs and, their fund managers benefit from a systematic and explicit access to the ESG research within their management tools as well as anESG integration process notably based on the implementation of concrete ESG integration projects. .

For the mandates: away from the negative screening, they apply a positive screening according to a "Best-in-class" approach". The screening is done according to our in-house ESG analysis based on dialogue with the companies and an ESG integration within the financial analysis.

2) Thematic and (Negative) Screening: For the Edmond de Rothschild Fund Global Healthcare, beyond the thematic, the fund applies the same negative screening and normative exclusion than EdR Tricolore Rendement..See LEI 01.2

LEI 02. Type of ESG information used in investment decision

02.1. Indicate what ESG information you use in your ESG incorporation strategies and who provides this information.

Type of ESG information

Indicate who provides this information  

Indicate who provides this information 

Indicate who provides this information 

Indicate who provides this information 

Indicate who provides this information 

Indicate who provides this information 

          Controversies alerts, carbon data

Indicate who provides this information 

02.2. Provide a brief description of the ESG information used, highlighting any different sources of information across your ESG incorporation strategies.

Our  proprietary research is based on an in-house ESG analysis matrix fed with complementary data obtained from a variety of sources:

From the companies being analysed (corporate publications, meetings with company management)

Provided by external extra-financial rating agencies: broad-based agencies such as  Sustainalytics, or specialist players (RepRisk for controversial issue alert systems).

From brokers producing ESG focused research (Oddo, Kepler-Cheuvreux, etc)

From proxy voting providers (Proxinvest, ISS and OFG)

From other data providers to obtain raw quantitative or qualitative data (e.g. Bloomberg, CDP)

Our ESG analysis process is applied in the SRI funds, and completed for one SRI mandate by a provider, Sustainalytics, due to geographical coverage constraints. With the additional support of Sustainalytics ESG data, an ESG research is available for around 6 000 European and global companies and, for countries.

02.3. Indicate if you incentivise brokers to provide ESG research.

02.4. Describe how you incentivise brokers.

Brokers who provide data for our in-house ESG analysis are paid annually on the basis of the rating they receive from the SRI research and investment team, and based on the management of the SRI fund, Edmond de Rothschild Euro Sustainable Growth.

02.5. Additional information.[Optional]

LEI 03. Information from engagement and/or voting used in investment decision-making

03.1. Indicate if your organisation has a process through which information derived from ESG engagement and/or (proxy) voting activities is made available for use in investment decision-making.

03.2. Additional information. [Optional]

Edmond de Rothschild Asset Management (France) has drawn up a Voting Policy which takes into account Environmental and Social considerations in addition to Governance issues. This policy is applied consistently by all equity portfolio managers. Details of the practical implementation and results of this policy are provided in a number of internal and external publications that are available for our Fund managers as soon as they are produced:

  • Minutes of the Voting and Engagement Committee,
  • Annual Vote Reporting (which also mentions the dialogue and ESG engagement efforts initiated with companies)
  • Annual Report dedicated to the ESG engagement initiated by the Edmond de Rothschild Tricolore Rendement fund 

Furthermore, fund managers have access to the voting platform and de facto to the analysis of resolutions which can provide further insight into their own views on the stocks.
 

(A) Implementation: Screening

LEI 04. Types of screening applied

04.1. Indicate and describe the type of screening you apply to your internally managed active listed equities.

Type of screening

Screened by

Description

Exclusion of any investments related to Anti-personnel mines (APM) and Cluster Bombs

Screening and Exclusion of a list of banned countries

 

Exclusion of any investments related to Anti-personnel mines (APM) and Cluster Bombs

All of our equity assets under management apply a negative screening approach (used systematically across all the asset management company's funds) based on an  exclusion of companies whose business is in any way related to cluster bombs and anti-personnel mines, in accordance with the Oslo Treaty and the Ottawa Convention signed by the French Government.

 

Screening and Exclusion of a list of banned countries

Edmond de Rothschild Asset Management (France) has drawn up a list of banned countries for which it is necessary to obtain prior approval from Internal Control and Compliance Department before making any investments. Nearly 30 countries appearing on this list are subject to an embargo put in place by the United States and Europe or have been subject to financial sanctions or to asset freezes. In order to enforce this screening, pre-trade blocking limits have been set up in the Dimension front office tool 

Screened by

Description

For our equity funds, it concerns one open-ended SRI funds and two institutional mandates.

For the SRI open-ended fund -Edmond de Rothschild Euro Sustainable Growth, the RI specialist team grants the stocks an internal SRI rating. These ratings are based on a seven-point scale ranging from CCC to AAA and are determined by aggregating the company's global results on different ESG (Environment-Social-Governance) criteria, as per the rating matrix designed by the RI specialist team. Extra-financial criteria are allocated different weightings according to the company's sector or industry: however, the overall rating is determined on an absolute basis and is not relative to the sector performanceTo enter  the portfolio, a stock must have a minimum rating of A

04.2. Describe how the screening criteria are established, how often the criteria are reviewed and how you notify clients and/or beneficiaries when changes are made.

POSITIVE SCREENING

Edmond de Rothschild Asset Management (France)'s rating methodology and the matrix for extra-financial analysis were drawn up by our RI fund management/research team following a survey of existing data frameworks (UN Global Compact, OECD or ILO-led conventions and official texts). A particular attention is paid on Global Compact participation and related controversies: this norms-based  compliance watch is not applied according to a systematic exclusion but as one of the components  of our ESG analysis.

Our SRI rating model was built with weightings that differ from the sector-based ESG criteria which take the specificities of each sector or industry into account.

Beyond the exclusion of companies whose business is in any way related to cluster bombs and anti-personnel mines, there is neither a sector or thematic-driven exclusion/inclusion bias, nor a geographic (within the euro zone) or market cap bias in Edmond de Rothschild Asset Management (France)'s SRI funds.

The ESG ratings of companies covered by our in-house extra financial analysis are updated every 18 to 24 months.

Our 3 main research pillars (Environment, Social and Governance - ESG) are not set to change. However, please note that :

  • the former 4th pillar of analysis “Stakeholders”has been merged in the 3 ESG pillars in 2017.
  • within these pillars, the extra-financial criteria or weightings can be modified according to their relevance or enhanced following the identification of new sustainable development issues.
  • These changes are communicated to the clients in the SRI Transparency code and the monthly factsheet.

 

NEGATIVE / EXCLUSIONARY SCREENING

 

  • Exclusion of any investments related to Anti-personnel mines (APM) and Cluster Bombs

All of our equity assets under management apply a negative screening approach (used systematically across all the asset management company's funds) based on an  exclusion of companies whose business is in any way related to cluster bombs and anti-personnel mines, in accordance with the Oslo Treaty and the Ottawa Convention signed by the French Government.

 

  • Screening and Exclusion of a list of banned countries

Edmond de Rothschild Asset Management (France) has drawn up a list of banned countries for which it is necessary to obtain prior approval from Internal Control and Compliance Department before making any investments. Nearly 30 countries appearing on this list are subject to an embargo put in place by the United States and Europe or have been subject to financial sanctions or to asset freezes. In order to enforce this screening, pre-trade blocking limits have been set up in the Dimension front office tool 

COMMUNICATION REGARDING CHANGES ON OUR ESG RESEARCH DATABASE

In terms of external communications regarding changes made to Edmond de Rothschild Asset Management (France)'s ESG research database, all relevant publications are updated regularly on our website in the "Responsible Investment" section (http://www.edmond-de-rothschild.com/site/France/en/asset-management/our-expertise/socially-responsible-investment), accessible to all stakeholders and clients. In addition, Edmond de Rothschild Asset Management (France) launched in 2013 a new publication dedicated to SRI, "The SRI Chronicles". This public newsletter can also include information on any changes made to the ESG/SRI investment process.

Finally, in the context of Edmond de Rothschild Asset Management (France)'s management of SRI mandates, the Investment and Extra-Financial Investment Committees organised for institutional investors provide an appropriate venue for disclosing any information or discussing any changes made to Edmond de Rothschild Asset Management (France)'s SRI research or investment process..

LEI 05. Processes to ensure screening is based on robust analysis

05.1. Indicate which processes your organisation uses to ensure screening is based on robust analysis. 

          Annual revision and enhancement of the subcriteria of our own ESG analysis framework; the internal & external controls made on our processes

05.2. Indicate the proportion of your actively managed listed equity portfolio that is subject to comprehensive ESG research as part your ESG screening strategy.

05.3. Indicate how frequently third party ESG ratings are updated for screening purposes.

05.4. Indicate how frequently you review internal research that builds your ESG screens.

05.5. Additional information. [Optional]

Positive screening process for our SRI funds and mandates

In addition to the controls that are carried out in-house, the strength of Edmond de Rothschild Asset Management (France)'s ESG research process is further evidenced by our management of SRI institutional mandates which require:

  • Strict controls on portfolio management related to the deployment of SRI research according to ESG specifications requested by the client.
  • External portfolios reviews carried out by extra-financial rating agencies:  
  •     1) ​Vigeo-Eiris reviewed one of the portfolios managed by Edmond de Rothschild Asset Management (France) on behalf of two institutional clients. This process resulted in Vigeo-Eiris granting Edmond de Rothschild Asset Management (France) one of the highest ratings relative to the client's other portfolio managers.
  •     2) On behalf of an institutional mandate, Trucost measures the carbon footprint of the SRI portfolio managed by Edmond de Rothschild Asset Management (France).
  • The production of specific reports several times in the year with a focus on ESG analysis / portfolio management: these also includes information on how we exercised our voting rights during Shareholders' meetings.

Besides, the ESG ratings of companies covered by our in-house extra financial analysis are updated every 18 to 24 months. The ESG rating can also be updated following to the current news and events, the controversies or still company meetings:

The ESG ratings for our SRI funds managed under an ESG positive screening strategy are determined on a dynamic basis: controversies can cause ESG ratings to be downgraded, depending on the severity and frequency of the issue.In the event of a severe controversy, the company’s ESG rating is downgraded; the fund manager-analysts will then put the stock on watch in order to review details and assess the company’s response to correct the situation. If a company’s rating falls below A, the stock is removed from the portfolio in a period not exceeding 90 days.

Generally speaking, disinvestments can be driven by a change in the fund managers’ financial or extra-financial convictions. Meeting the company’s management can alter our view of the company, cause the up/downgrade of its ESG rating, or even trigger an exit from the portfolio due to a low rating.

As far as information on SRI portfolios movements is concerned, new SRI portfolios holdings and exits are recorded in the SRI funds’s monthly financial and extra-financial reporting, where the funds managers may mention any ESG-related issues in the comment section, where relevant.

NEGATIVE / EXCLUSIONARY SCREENING PROCESS FOR ALL OUR EQUITY FUNDS

Edmond de Rothschild Asset Management (France) has implemented a policy excluding stocks involved in the production of cluster bombs and anti-personnel mines from all of the UCITS/AIF and mandates that it manages.

The list of stocks involved in the production of cluster bombs and anti-personnel mines is drawn up at least once a year by the RI team, in cooperation with the Chief Investment Officer. This list is based  publicly-available lists (e.g. PGGM, Norwegian Pension Fund, Australian Pension Fund, etc.) and internal research.

At the Voting and Engagement Committee, which meets at least twice a year, this list is submitted by the RI investment team and, reviewed and validated as appropriate by the Committee. The Committee's minutes include the validation of the list and its composition. It is circulated to Risk Department so that   the front office tool limits are updated accordingly..

This blocking limit applies to all of the portfolios managed by Edmond de Rothschild Asset Management (France).

Besides, Edmond de Rothschild Asset Management (France) has drawn up a list of banned countries for which it is necessary to obtain prior approval from Internal Control and Compliance Department of the Edmond de Rothschild Asset Management (France) before making any investments. As a result, this list of banned countries has an impact in the authorisation of our investment for the equities, corporate and sovereign debt.

Nearly 30 countries appearing on this list are subject to an embargo put in place by the United States and Europe or have been subject to financial sanctions or to asset freezes.

LEI 06. Processes to ensure fund criteria are not breached

06.1. Indicate which processes your organisation uses to ensure fund criteria are not breached

06.2. If breaches of fund screening criteria are identified - describe the process followed to correct those breaches.

Edmond de Rothschild Asset Management (France)’s Risk Control Group has set up specific risk controls via “Dimension”, our front/middle/risk management tool, applicable to the Edmond de Rothschild Euro Sustainable Growth fund:

  • the tool is set to check that every stock within the portfolio has a SRI rating
  • the tool operates on a pre-trade and  post-trade basis to prevent the potential inclusion of a poorly-SRI rated stock in the portfolio (i.e. rating < or = to BBB). 
  • every day, the Risk Control Group checks on a post trade basis that all portfolio holdings still have SRI ratings of "A" or above and therefore, that any stock with an inferior rating due to a downgrading is going to be sold within one month, as soon as practicable in the best interest of the unitholders.

Furthermore, Edmond de Rothschild Asset Management (France)’s Internal Control carries out an annual review of the investment process, including the ESG research methodology applicable to these SRI funds (as well as for the SRI mandates process) . This control of the process involves checking the factsheets and the in-house SRI ratings for a sample of stocks  in the SRI open ended funds and mandates portfolios: every stocks within these SRI portfolios must have an ESG rating. 

Finally, the transparency and thoroughness of our ESG research methodology is audited by third parties such as EY France (within the new SRI labelling process launched  and supported by the French Finance Ministry and awarded for the equity SRI fund Edmond de Rothschild Euro Sustainable Growth), or still by institutional investors in the course of reviewing the SRI mandates that we manage on their behalf.  

CONTROL PROCEDURES DESIGNED TO ENSURE THE COMPLIANCE OF THE SCREENING AND EXCLUSIONARY PROCESS FOR ALL OF OUR EQUITY FUNDS

  • Exclusion related to Anti-personnel mines and Cluster Bombs

The stocks within the forbidden list for antipersonnel landmines and cluster bombs cannot be included in the portfolio as “Dimension” – our front office tool - operates on a pre-trade basis and will block the transaction.

  • Negative / Exclusionary screening

Edmond de Rothschild Asset Management (France) has drawn up a list of banned countries for which it is necessary to obtain prior approval from Internal Control and Compliance Department of the Edmond de Rothschild Asset Management (France) before making any investments. As a result, this list of banned countries has an impact in the authorization of our investment for the equities, corporate and sovereign debt.

Nearly 30 countries appearing on this list are subject to an embargo put in place by the United States and Europe or have been subject to financial sanctions or to asset freezes.

Some countries are formally prohibited (5 countries under embargo, i.e. Cuba, Iran, Syria, North Korea and Sudan), while others are placed under a close monitoring: this triggers an analysis on a case by case basis by the internal control and compliance department which authorizes or prohibits the investment within the day.

In order to enforce this screening, systematic pre-trade blocking limits have been set up in the Dimension front office tool: this pre-trade block limit is set in all cases for the equities.

06.3. Additional information.[Optional]

(B) Implementation: Thematic

LEI 07. Types of sustainability thematic funds/mandates

07.1. Indicate the type of sustainability thematic funds or mandates your organisation manages.

07.2. Describe your organisation’s processes relating to sustainability themed funds. [Optional]

  • A Eurozone SRI/ESG selection fund with a combination of themes

The SRI equity fund Edmond de Rothschild Euro Sustainable Growth  is a combination of ESG screening and multi thematic approach. It seeks to pick stocks with interesting growth prospects which also strive to apply best sustainable development principles. The investable universe is defined through the selection of stocks with minimum ESG rating of A combined with a selection of growth stocks that operate principally on market segments that are typically exposed to sustainability issues: energy transition, healthcare and population, digitalisation, education & research…

From this investable universe, we conduct financial and stock market analysis and construct a portfolio of around 40-50 positions. The fund's managers-analysts also regularly monitor indicators on the portfolio's extra-financial impact. Thus, the fund currently focuses on different indicators as carbon emissions (carbon footprint/intensity/exposition), “green impact”, rate of staff absenteeism or injury frequency, proportion of women on executive committee and whether companies are signatories to the UN's Global Compact. These indicators help track the fund's extra-financial performance compared to its benchmark index: they have been  disclosed in a new document available in French version on our website and entitled “Performance Extra-Financière : l’exemple d’Edmond de Rothschild Euro Sustainable Growth”. The contents of this document also includes the fund’s voting activity.

Edmond de Rothschild Euro Sustainable Growth  received the new French SRI  label after an audit of its process and transparency by EY in September 2017.

 

  • A global thematic fund focused on the Health sector

Edmond de Rothschild Asset Management (France) also manages a socially thematic equity fund on healthcare :Edmond de Rothschild Fund  Healthcare*. This fund invests at least 60% of its net assets in securities issued by companies operating the healthcare sector (biotechnology, pharmaceuticals, medical technology, medical diagnosis, hospital and healthcare centre management, and other medical services) as well as companies marketing these products or services. *a sub fund of the Luxembourg-regulated SICAV which is approved by the CSSF, managed by Edmond de Rothschild Asset Management (Luxembourg) and for which Edmond de Rothschild Asset Management (France) is the sub investment manager

(C) Implementation: Integration of ESG issues

LEI 08. Review ESG issues while researching companies/sectors

08.1. Indicate which ESG factors you systematically research as part of your investment analysis and the proportion of actively managed listed equity portfolios that is impacted by this analysis.

ESG issues
Proportion impacted by analysis
Environmental

Environmental

Social

Social

Corporate Governance

Corporate Governance

08.2. Additional information. [Optional]

In terms of ESG integration within its equities management

  • Edmond de Rothschild Asset Management (France) has integrated the ESG criteria in its voting policy as they may be subject to shareholder resolutions.
  • Edmond de Rothschild Asset Management (France) is gradually increasing the scope of its ESG research coverage:

                   => Edmond de Rothschild Asset Management (France) has already extended its SRI / ESG analysis capabilities thanks to a partnership with the extra-financial agency Sustainalytics. This ESG-focused information is available and accessible in-house to all the funds management team.

                   => Our in-house ESG research capability currently covers 6000  global companies among which we met in 2017 115 companies (against 81 in 2016) related to ESG issues and we updated  144 ESG ratings (against 111 in 2016).

 

LEI 09. Processes to ensure integration is based on robust analysis

09.1. Indicate which processes your organisation uses to ensure ESG integration is based on a robust analysis.

09.2. Indicate the proportion of your actively managed listed equity portfolio that is subject to comprehensive ESG research as part your integration strategy.

09.3. Indicate how frequently third party ESG ratings that inform your ESG integration strategy are updated.

09.4. Indicate how frequently you review internal research that builds your ESG integration strategy.

09.5. Describe how ESG information is held and used by your portfolio managers. 

          ESG and carbon profiling is used to feed the dialogue with the European investees on ESG material risks and opportunities. It can influence investment decisions.

09.6. Additional information.[Optional]

operational methods focus on interacting with asset management teams and paying attention to material ESG risks and opportunities in order to help managers understand and take ownership of ESG factors:

  1. Accessibility of ESG data and extended analysis coverage

  2. Gradual introduction of systematic ESG discussions, materialized during:  

 weekly equity and fixed-income meetings regarding the RI team ESG convictions (alerts regarding controversies or sensitive issues, highly material events, investment opportunities on sustainability-related stocks)

informal day-to-day email discussions with RI asset managers regarding an issuer's material ESG risks

  3. Practical ESG projects (Bottom-up approach

All equity and bond management teams are contributing to and co-operating with ten ESG integration projects in 2017-2020 such as the  Valuation impact of ESG research (equities and corporate credit) project, which finalized in the systematic integration of the ESG rating impacts on the equities and corporate bond valorisation

4 Monitoring of carbon and ESG measures

This work is currently carried out on request, but the 2020 goal is that 100% of our active fundamental asset management will feature ESG integration and carbon footprint monitoring and r

LEI 10. Aspects of analysis ESG information is integrated into (Private)

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