We have retained the four traditional dimensions of corporate social responsibility, selecting for each only the most material ESG criteria:
- shareholder responsibility (governance)
- environmental responsibility (environment)
- labour responsibility (human resources)
- social responsibility (society)
Corporate responsibility analysis is conducted relatively to each specific sector and taking into account the company's specifics (activities, geographical exposure) if any. Each dimension has a different weighting depending on the sector and the company's specifics. We use a total of 24 criteria within the 4 dimensions above (some can be deactivated in some sectors if they are not relevant). The final Responsibility rating ranges from 0 to 10 and results in a recommendation on the level of responsibility risk. Distribution of the universe takes into account outlying ratings. Below the threshold 4 out of 10, a company is screened out from the SRI eligible universe.
We also have a strict exclusion of controversial weapons for every funds; and we apply sector/activity exlusions for SRI strategies (tobacco, coal, unconventional oil and gas, defense).