In 2017, we introduced a new approach for the monitoring of controverserises. LBPAM defined a list of companies that we excluded from our RI strategies, due to severe or repeated violations of the UN Global Compact principles. We have engaged with some of these companies to determine whether their practices improved on specific KPIs, thus triggering changes in our investment decisions. This list is reviewed at least on a half-year basis by a dedicated committee. The committee checks whether there were corrective measures following the controversies, and may update the list accordingly.
We implement a similar process for some issuers in buy-and-hold mandates when our clients ask us to monitor controversies. A dialogue may be initiated with the companies facing controversies, and updates are regularly provided to our clients.
Besides these targeted engagement activities, we meet companies on an ongoing basis in order to improve our understanding of their ESG strategy and to encourage them to improve their ESG disclosure and practices. Their answers and tone can influence ratings within our ESG rating tool AGIR.