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La Française Group

PRI reporting framework 2019

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Outputs and outcomes

FI 17. Financial/ESG performance

17.1. Indicate whether your organisation measures how your incorporation of ESG analysis in fixed income has affected investment outcomes and/or performance.

Select all that apply
Corporate (financial)
Corporate (non-financial)
We measure whether incorporating ESG impacts portfolio risk.
We measure whether incorporating ESG impacts portfolio returns.
We measure the ESG performance/profile of portfolios (relative to the benchmark).
None of the above

17.2. Describe how your organisation measures how your incorporation of ESG analysis in fixed income has affected investment outcomes and/or ESG performance. [OPTIONAL]

17.3. Additional information.[OPTIONAL]


FI 18. Examples - ESG incorporation or engagement

18.1. Provide examples of how your incorporation of ESG analysis and/or your engagement of issuers has affected your fixed income investment outcomes during the reporting year.

ESG issue and explanation

The bankruptcy Imerys Talc Americas following legal proceedings related to hygienic talc sold by Johnson & Johnson, potentially causing ovarian cancer.

Impact on investment decision or performance

Divested of Imerys bonds for a client with a demanding ESG integration policy combined with values-based exclusions (as defined by the client). The Imerys Talc Americas subsidiary represents only ~3% of the group's turnover but we decided to sell the bond in the portfolio as:

·        this product application violates human rights

while being associated with J & J who is on our client's exclusion list

ESG issue and explanation

Climate change adaptation. We had to assess whether holding corporate bonds of Volkswagen AG was justified from the perspective of the company’s alignment with a 2-degree warming scenario.

Impact on investment decision or performance

One of our Senior ESG Analysts engaged with the new Head of Sustainability at Volkswagen with regards to our transition pathway modelling. The engagement was very constructive and further information was disclosed by the company post engagement. Together, this allowed us to refine our model such that we concluded the company meets our requirement for positive energy transition. As a result, we have built a substantial ownership of Volkswagen’s debt.

18.2. Additional information.


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