This report shows public data only. Is this your organisation? If so, login here to view your full report.

La Française Group

PRI reporting framework 2019

Export Public Responses
Pdf-img

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

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

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.3. Indicate if the investment policy covers any of the following

01.4. Describe your organisation’s investment principles and overall investment strategy, interpretation of fiduciary (or equivalent) duties,and how they consider ESG factors and real economy impact.

Please refer to La Française RI Policy

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

La Française Group has a deep commitment to responsible investment (RI) and a demonstrated track record of implementing responsible investment principles in practice.

Signatory of the Principles for Responsible Investment in 2010, La Française Group places responsible investment at the heart of its business philosophy by applying it to a majority of its equity investment, disclosing a bi-annual extra-financial report and a Transparency Code.

As a proof of its steadfast commitment to SRI, La Française Group launched the first socially-responsible real estate investment fund on the market in 2009. Nowadays, the Group is a leader in sustainable real estate investment.

In 2017, the Group's transformed its joint-venture with Inflection Point Capital Management (IPCM) into a full ownership, a sign of its commitment to having a dedicated internal research arm on ESG and renamed IPCM into Inflection Point by La Française (IPLF). With IPLF it has developed a proprietary methodology for embedding a responsible, strategic and long term approach in all its investment. This approach has been deployed on the equity asset class as well as property and is infusing the direct financing one. It is now being extended to the credit.

Much more than a standard SRI analysis, our RI approach proves to be is a genuine innovation with a sustainable and responsible disciplined investment process, which constitutes today a clear RI policy designed to become a common policy for all asset classes.

01.6. Additional information [Optional].

          
        
I confirm I have read and understood the Accountability tab for SG 01 I confirm I have read and understood the Accountability tab for SG 01

SG 01 CC. Climate risk

01.6 CC. Indicate the climate-related risks and opportunities that have been identified and factored into the investment strategies and products, within the organisation's investment time horizon.

All climate related risks are identified and factored in the equity investment analysis, which we call climate impact analysis. This type of analysis is increasingly part of the fixed income investment strategy as well.

 

The climate impact analysis incorporates carbon exposure, management and transition. And as such we look at the following risks:

-        Regulatory risks: particularly when they imply carbon-pricing schemes.

-        Physical risks: this is done at the asset level.

-        Transition: we assess how companies are best aligned with a low carbon trajectory.

 

As far as the climate-related opportunities are concerned, they are definitely part of the investment analysis. La Francaise Group through its investment analysis identifies companies which benefit from climate-related opportunities. Therefore, the group identifies:

-        Low carbon emissions intensity.

-        Use of renewable energy.

-        Low carbon solutions, looking at the entire value chain.

Regarding real Estate, La Francaise Group incorporates both climate-related risks and opportunities. We take into account in our investment strategy the carbon footprint, the energy efficiency and the performance improvement upside.

01.7 CC. Indicate whether the organisation has assessed the likelihood and impact of these climate risks?

01.8 CC. Indicate the associated timescales linked to these risks and opportunities.

01.9 CC. Indicate whether the organisation publicly supports the TCFD?

01.10 CC. Indicate whether there is an organisation-wide strategy in place to identify and manage material climate-related risks and opportunities.

Describe

Only for equity and real estate at the moment.

1.12 CC. Indicate the documents and/or communications the organisation uses to publish TCFD disclosures.

specify

          Reporting sur la stratégie responsable et climatique (article 173)
        

SG 02. Publicly available RI policy or guidance documents

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

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

02.3. Additional information [Optional].

For active ownership, both the voting right policy and the engagement policy are available in the "informations réglementaires" .

We do publish a Transparency Code attached to our SRI funds that is publicly available.


SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

The interests of clients and beneficiaries are the primary concern of La Française Group, and it therefore recognizes the importance of managing potential conflicts of interests. The relevant conflicts of interests' policy of La Française Group enables to answer such situations and is available on https://www.lafrancaise-group.com/fileadmin/docs/corporate/Politique_gestion_conflits_interets_Groupe.pdf and upon request to La Française - Compliance Department, +33 (0)1 44 56 52 02.

03.3. Additional information. [Optional]


SG 04. Identifying incidents occurring within portfolios

04.1. Indicate if your organisation has a process for identifying and managing incidents that occur within portfolio companies.

04.2. Describe your process on managing incidents

Companies’ involvement in controversies is regularly monitored and analysed on a case-by-case depending on the severity of the incidence. The objective is to quantify the negative impact a company has caused through its behaviour and the level of responsibility attributable to a specific company. Companies are further assessed how systematic such issues are. Depending on the type of incidence (strategic, financial, ESG) the assessment is led by a portfolio manager or analysts. For ESG-related incidents (e.g. environmental pollution, product contamination, human rights violation, CEO resignation) the analysis is carried out by an ESG analyst. The steps typically involved in managing an incident are as follows: - Information gathering: desktop research (company disclosures, publicly available news sources, information from subscription services etc), conversations with company representatives (usually IR as the first point of contact) and discussions with experts including sell-side analysts. In selected cases we would approach other investors to discuss the incidence and potentially to pursue joint measures. - Risk assessment: Scenarios with alternative probabilities of risk related to the incident occurring and the respective financial and reputational impact. The case information and the result of the assessment is documented on our Internal Research Platform (FactSet). If appropriate, the internal ESG score for this company will be reduced accordingly. - Decision making: The portfolio manager will consult with the analyst. Based on the risk assessment the portfolio manager will decide whether to reduce the exposure or to divest. If the company remains a portfolio holding it will become subject of enhanced monitoring combined with regular engagement activity (e.g. meetings with company representatives and voting at AGM/EGM). Should the risk assessment deteriorate further a divestment decision will be reconsidered.


Top