Financial analysts have structured their work according to a Bottom-up approach which consists first in identifying investment opportunities (with no constraints). Then the ESG is broken down into 3 steps :
1- Exclusion criteria : we ban companies that have land Mines & Cluster munitions activities and identify companies that do not respect principles in the field of human rights, labour, environment and anti-corruption, criteria, mainly derived from the UN Global Compact's ten principles (only for funds complying with this exclusions list).
2- Qualitative analysis : For each criteria E, S and G, specific strengths and weaknesses are identified for each company depending on the sector.
3- Quantitative analysis : an ESG score is attributed to each company. We have created an internal ESG rating for each company in our investment list for both European and US equity and FI . This is partly based on the independent ESG rating provided by MSCI which is enriched with our own assessment of ESG analysis for each company we cover.
For each company included in our investment list, the equity analysts publish a one-pager. The above 3 steps lead to the ESG analysis summary and an overall ESG score.