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Edmond de Rothschild Asset Management (France) (EDRAM)

PRI reporting framework 2018

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You are in Strategy and Governance » ESG issues in asset allocation

資産配分におけるESG問題

SG 13. ESG issues in strategic asset allocation

この指標には新しい設問が追加されています。事前に入力されている回答を精査してください。

13.1. ポートフォリオレベルで将来のESGトレンドのリスクプロファイルを計算するシナリオ分析やモデリングを組織が実施しているかどうかについて明示してください。

このシナリオ分析は、2℃以下のシナリオに基づいていますか?

SG 13.1a CC. さまざまな将来の気候シナリオを考慮して、組織の戦略の回復力を説明してください。

影響を受ける戦略
戦略の変更
シナリオと時間軸の説明
分析がどのように使われたか
          SRI equities funds
        
          The funds is not invested in the 10 sectors considered risky in our climate  roadmap
        
          3 horizons have been identified: short term(2017-2020), mid term (2020-2030)  and long term (2030-2040)
        
          The climate roadmap uses the TCFD typologie to identify the subsectors considered at risk.
        

13.2. 組織が戦略的な資産配分やセクターまたは地理的な市場間での資産の配分においてESG問題を考慮しているかどうかを記載してください。

以下を行っている

13.3. 補足情報 [任意]

We will progressively work on it to integrate this in 2017-2020.

As part of the FIR’s Research Committee, we also became the joint co-ordinator of a new FIR exploratory working group on the theme of “ALM / Strategy asset allocation and Responsible Investment”, which met for the first time in November 2017. The group will address questions relating to the connection between SRI and asset allocation, and the consequences in terms of risk, asset classes and management constraints. Four deliverables are expected in 2018.


SG 14. Long term investment risks and opportunity

14.1. 貴社と貴社の事業活動にとって重要な影響を及ぼしうる短・中・長期的なリスクや機会を決定するプロセスを説明してください。

Climate change represents a major research axis for Edmond de Rothschild Asset Management. In 2017, we  moved one step further with the formalisation of our 2°C Roadmap, drawn on the final recommendations of the Task Force on Climate-related Financial Disclosures (TFCD) and on the scenario 450, issued by the International Energy Agency (IEA) The 2°C roadmap applies to both Equity and Fixed Income asset classes. We have developed a proprietary rating model that quantifies the main climate-related risks and opportunities, at sector and sub-sector level. At this stage, our 2°C roadmap is global and does not provide distinctions for different geographical regions. As far as climate risks are concerned, our roadmap recommends staying focused and concentrating on a limited number of sectors and issuers. In practical terms, 90% of climate-related risks are to be found in 10% of issuers, across ten industries at most.

14.1 CC. 気候に関連した短期、中期および長期のリスクと機会が、貴社の活動に重大な影響を及ぼす可能性があるかどうかを判断するためのプロセスを説明してください。

EDRAM used the TCFD framework to identify the risks and opportunities related to climate change: analysing the transition risk and physical risks. 

To learn more about our process, please see the description in SG 01.3.b.CC

14.2. 一部の投資リスクと機会は長期トレンドの結果として発生します。貴社では、以下のどの項目について取り組んでいるか明示してください。

14.2a cc. 「短」、「中」、「長期」をどのように定義するかを記述し、これらの期間にわたる重要な気候関連の問題を説明して下さい。

定義
気候関連の問題の説明
Short term
          2017-2020
        
          Market risks, regulationl risks, reputation risks
        
Medium term
          2020-2030
        
          Market risks, regulation risks,  reputation risks technology risks,
        
Long term
          2030-2040
        
          Market risks, regulation risks,  reputation risks technology risks,
        

14.3. 気候に関するリスクと機会に対応して組織で実施されている活動を選択してください。

14.4. 気候に関するリスクと機会の管理に際して採用している手段を選択してください。

14.4a CC. 気候に関連するリスクと機会を評価するために使用されるこれらの重要な指標についての詳細を記入してください。

指標の種類
カバレッジ
目的
指標の単位
方法
動向
制限・弱み
気候関連の目標
          most companies
        
          assess the opportunity
        
          % of reduction, SBT target
        
          % of companies with a target
        
          depending on the fund
        
          scope 3 is not often included
        
加重平均炭素濃度
          most companies
        
          risk
        
          tCO2/ euro
        
          Refer to  http://www.edmond-de-rothschild.com/SiteCollectionDocuments/asset-management/isr/EDRAM-FR-EN-empreinte-carbone-carbon-footprint.pdf
        
          depending on the fund
        
          scope 3 not included
        
カーボンフットプリント(スコープ1と2)
          most companies
        
          risk
        
          tCO2
        
          Refer to  http://www.edmond-de-rothschild.com/SiteCollectionDocuments/asset-management/isr/EDRAM-FR-EN-empreinte-carbone-carbon-footprint.pdf
        
          depending on the fund
        
          scope 3 not included
        
ポートフォリオのカーボンフットプリント
          most companies
        
          risk
        
          tCO2
        
          Refer to  http://www.edmond-de-rothschild.com/SiteCollectionDocuments/asset-management/isr/EDRAM-FR-EN-empreinte-carbone-carbon-footprint.pdf
        
          depending on the fund
        
          scope 3 not included
        
総炭素排出量
          most companies
        
          risk
        
          tCO2
        
          Refer to  http://www.edmond-de-rothschild.com/SiteCollectionDocuments/asset-management/isr/EDRAM-FR-EN-empreinte-carbone-carbon-footprint.pdf
        
          depending on the fund
        
          scope 3 not included
        
炭素濃度
          most companies
        
          risk
        
          tCO2/ e
        
          Refer to  http://www.edmond-de-rothschild.com/SiteCollectionDocuments/asset-management/isr/EDRAM-FR-EN-empreinte-carbone-carbon-footprint.pdf
        
          depending on the fund
        
          scope 3 not included
        
その他の排出量指標
          european companies
        
          opportunity
        
          rating
        
          internal
        
          depending on the fund
        
          scope 3 not included
        

14.4b CC. 主要目標についてさらに詳しく記入してください。

目標の種類
期間
基準年度
KPI
方法
制限・弱み
添付資料
          
        
          
        
          
        
          
        
          
        

          
        
          
        
          
        
          
        
          
        

14.5. 排出量リスクの開示を選択した場合、採用している開示方法またはそのフレームワークの中で気候関連のものを挙げてください。

In line with the commitments of the Edmond de Rothschild Group during the COP 21, and consistent with its Responsible Investment policy, Edmond de Rothschild Asset Management (France) wanted to mean its commitments to fight against global warming by signing the Montreal Carbon Pledge in 2015.

As a signatory, Edmond de Rothschild Asset Management (France) has committed to measure progressively and make public annually the carbon footprint of its investments. A first commitment it honoured on December 1, 2015 on a portion of its equity investments, namely portfolios shares France/Zone Euro/Europe (except Midcaps Fund). It was about 60% of the stock of the equity management. This indicator is measured by the in-house RI team from data it collects : this testify of the quality of our proprietary extra-financial analysis.  For the year ended 2016, we had just extended the carbon footprint coverage to the US equities portfolios and most global equities portfolios. corresponding to 16 open-ended funds and about 80% of the AUM of our overall open-ended equity funds.  The next update and extension of our carbon footprint measure will be disclosed in the second quarter 2018. All the details of the methodology used can be found on the following public document: http://www.edmond-de-rothschild.com/site/France/en/asset-management/our-expertise/socially-responsible-investment).

Please note that, in addition to  the carbon footprint, which is disclosed publicly on our website, we can also follow two other complementary carbon measures: the carbon exposition and the carbon intensity.

These measures have no immediate consequences for a mainstream systematic reduction of the relevant portfolios CO2 footprint, but it represents the first step for the integration of carbon risk in the management of our portfolios. It also allows to raise the awareness of all our stakeholders to the carbon issue and, to underline the intention of Edmond de Rothschild Asset Management (France) to be transparent.

However, Edmond de Rothschild Asset Management (France) manages several SRI open-ended funds and dedicated mandates (eg: low carbon mandate of the amLeague, www.am-league.com/fr/rankings/) with a low carbon footprint which invest in low carbon / green companies. Indeed, the analysis of the green impact of the companies is already integrated into our internal ESG research through two different perspectives:

The operational footprint: energy consumption criteria (sub-criteria: Objectives, Actions, Results) and emissions of greenhouse gases (idem)

The products footprint: impacts of products and services criteria (sub-criteria: life cycle analysis, green innovation, reduction of products impact).

These two categories represent a significant part of the environmental rating of a company (20% for the cement industry, 26% for players in energy efficiency).

14.6. 補足情報 [任意]

OUR POSITION REGARDING CARBON RISKS

Edmond de Rothschild Asset Management is strongly committed to accompany its institutional clients so that they can better address this emerging risk and thus meet their fiduciary duty and their own commitments. We also want to give them access to investment opportunities that have a positive impact on the energy transition for green growth.

  • A responsible and prudent approach

​Identify and manage risks, assessing the impacts of our investment decisions at the outset.

Reconcile financial performance, fiduciary responsibility and climate change solutions, avoiding knee-jerk reactions that could precipitate abrupt changes with negative short-term economic and social impacts. Understanding the extent to which risks have been integrated into the price of a security is an essential step to facilitate investment decisions.

=>Measurement of the carbon footprint of portfolios, Identification of securities/sectors at  risk, individual and collective engagement.

  • A proactive and positive contribution to tackle climate change 

Identify and seize the opportunities in promising markets reconciling growth and sustainable development, while exercising caution on markets which are not yet fully mature in terms of volumes, financial and ESG  performance and which have shown weakness in the past.

=> Assets and funds integrating the energy transition for green growth theme, green infrastructure, sustainable real estate, etc.

OUR INITIAL COMMITMENTS TO ADDRESS CLIMATE CHANGE

  • A key step : signing the Montréal Carbon Pledge (see SG 14.5)

A 2°C roadmap 2017-2040 defined in 2017 in cooperation with our clients, especially the institutional investors. 

In 2016, Edmond de Rothschild Asset Management developed a first public document, “Our Contribution to Tackling Climate Change”, to articulate its reflections and positions regarding the management of carbon risks and opportunities and the ways in which it seeks to support its institutional investors in fulfilling their fiduciary duty on this subject. These first reflections have been developed in 2017 with the launch of  a dedicated 2°C roadmap, itself part of the 2017-2020 Responsible Investment strategy.

To know more about Edmond de Rothschild Asset Management's Climate change positive contributions, you can access our Climate brochure through this web link : http://www.edmond-de-rothschild.com/SiteCollectionDocuments/asset-management/isr/EDRAM-EN-Climate-Brochure.pdf . The key components of our 2°C roadmap  is described within the additional Climate-related questions of our PRI reporting.

EDRAM focus on sectors with high carbon intensity such as cement, coal, etc. The analysis is done in absolute terms and in relative terms and include the scope 3 in a qualitative manner. EDRAM is convinced that the biggest risk are borne by 10% of the companies in less than 10 economic sectors..

On the funds levels, we concentrate our efforts on high intensive funds such as energy, and /or funds which perform well below their benchmark. Regarding our engagement policy, Edmond de Rothschild Asset Management (France) identified 60 among 180 top emitters globally over which it will concentrate its dialogue and engagement.

Our climate research also tends to focus on the climate opportunities.  The review of five pillars (resource management, sources of energy, products and services, markets, and degree of resilience) has enabled us to identify 19 opportunities related to climate change, 10 of which are to be seized immediately.

It is used for all funds and especially the dedicated fund Nikko Green New Deal, a thematic fund on environment, (such as energy efficiency, renewables energy, etc). and the fund EdR Euro Sustainable Growth, whith the focus on growth opportunities including the climate solutions.

14.7 CC. 気候関連のリスクを特定、評価、管理するためのリスク管理プロセスを挙げてください。

説明してください。

Based on TCFD guidelines, all management teams have access to the 5 subsectors identified as at  high risk (level 5, highest risk) on the climate change issue and the 10 strong opportunities (level 5, top opportunities)

14.8 CC. 気候関連のリスクを優先させるためのプロセスを説明してください。

EDRAM focus on sectors with high carbon intensity such as cement, coal, etc. The analysis is done in absolute terms and in relative terms and include the scope 3 in a qualitative manner. EDRAM is convinced that the biggest risk are borne by 10% of the companies in less than 10 economic sectors..

On the funds levels, we concentrate our efforts on high intensive funds such as energy, and /or funds which perform well below their benchmark

14.9 CC. 気候関連のリスクに関するより良い情報開示と実践を促すために、投資先企業とのエンゲージメント活動を行っていますか?

説明してください。

The engagement has both goals of obtaining a better transparency and ameliorating the climate performance of companies. EDRAM targets the companies:

1/ in its portfolio and,

2/ having the biggest carbon footprint (scope 1-2 or 1-2-3).

For instance it is engaged via the PRI Clearinghouse with other investors to have a better transparency and performance from energy companies on their methane emissions.

Regarding our engagement policy, Edmond de Rothschild Asset Management (France) identified 60 among 180 top emitters globally over which it will concentrate its dialogue and engagement

14.10 CC. 気候関連の開示データをどのように使用するかを説明してください。

Our climate research tends to focus on the climate opportunities.  The review of five pillars (resource management, sources of energy, products and services, markets, and degree of resilience) has enabled us to identify 19 opportunities related to climate change, 10 of which are to be seized immediately.

It is used for all funds and especially the dedicated fund Nikko Green New Deal, a thematic fund on environment, (such as energy efficiency, renewables energy, etc). and the fund EdR Euro Sustainable Growth, whith the focus on growth opportunities including the climate solutions


SG 15. Allocation of assets to environmental and social themed areas (Private)


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