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DNCA Finance

PRI reporting framework 2019

You are in Strategy and Governance » Objectives and strategies

Objectives and strategies

SG 05. RI goals and objectives

05.1. Indicate if and how frequently your organisation sets and reviews objectives for its responsible investment activities.

05.2. Additional information. [Optional]

We have set up an ESG Committee running once a month. This cross-functional committee, which comprises most of the teams involved in the development of the RI expertise (RI team, fund managers, sales, marketing, risk management, compliance and legal) discusses the main activities ongoing and supervises the roll-out of the RI strategic plan.

We have also set up an Ethics Committee running twice a year (and upon request if need be). This cross-functional committee, which comprises the most of the teams involved in the development of the RI expertise (RI team, and respective heads of fund management, risk management, compliance (France and Luxembourg), legal and sales (Luxembourg) teams)  is in charge of creating and updating the list of exclusion in connection with controversial weapons, and discussing any other ethical matters.


SG 06. Main goals/objectives this year

06.1. List the main responsible investment objectives that your organisation set for the reporting year.

Responsible investment processes

Key performance indicator

          1- Deploy the ABA tool, dedicated for ESG ratings and analysis, across investment teams (including the relevant training)
2- Creation of an ESG committee
        

Progress achieved

Each portfolio manager has access to the ABA tool and can have a look at the ESG ratings and analysis of the companies covered (230 at the end of March 2019).

Each portfolio manager has a conversion matrix to incorporate ESG ratings into the premium risk of each company (valuation approach). 

An cross-functional ESG committee has been created in 2018 and is running on a monthly basis. 

Key performance indicator

          1- Setting up an engagement policy that is explained to the portfolio management teams
2 - Conducting more and more engagement meetings with PMs
        

Progress achieved

An engagement policy has been set up and presented to the portfolio management teams.

An exclusion policy has been set up as well including a pre-order tool to control the application. 

Some engagement were conducted with the PM. All engagement progress were systematically communicated to the PM

Key performance indicator

          1- Creation of an ESG department integrated in the investment team
        

Progress achieved

An ESG / Responsible Investment department has been created in 2018 (3 people). This department has been fully integrated into the investment management team. 

Each week, an Investment committee is held to discuss the investment newsflow and share investment ideas. The ESG team is part of this committee. 

Key performance indicator

          Meetings with top management of companies
        

Progress achieved

The Investment management team is conducting over 1.500 meetings a year of which more than 300 are dedicated to ESG. 

Within traditional financial meetings, ESG topics are very often discussed.

Key performance indicator

          Specific premium risk calculation for ESG ratings
        

Progress achieved

A matrix is disclosed publicly and internally to apply a direct impact on valuation: ESG impact on risk premium. 

Financial performance of investments

Key performance indicator

          1- Performance attribution of ESG indicators 
2- Alpha coming from ESG ratings
3- Backtesting on ESG sub-criteria (volatility and performance)
        

Progress achieved

A methodology is being developed for the two first criteria.

Backtesting is being conducted based on the first ratings (31st december of 2018). 

ESG characteristics of investments

Key performance indicator

          1- Overall ESG ratings
2- Fund exposure to ESG risks and opportunities
3- Carbon footprint
        

Progress achieved

The results are disclosed and monitored on a monthly basis through the financial reporting since October 2018. 

This only applies to SRI funds.

Other activities

Key performance indicator

          DNCA has to sign the main RI initiatives
        

Progress achieved

DNCA is a signatory of :

- the PRI

- the CDP

- Finance for Tomorrow

- The French SRI Label 

Key performance indicator

          DNCA will participate in key working groups 
DNCA will be active to encourage investors to implement a responsible investment approach and join initiative
        

Progress achieved

DNCA is a member of the AFG Responsible Investment committee (at the commission level and the executive level)

DNCA is heading a working group dedicated to SDG's incorporation

DNCA will organise a dedicated SRI day in June 2019 to encourage retail investors to invest in SRI.

DNCA has participated in several consultations on public policy: TCFD, EcoLabel, Green taxonomy, AMF.... 

DNCA participates in different publication (RI guide for private investors, newspapers, videos....)

Key performance indicator

          DNCA will provide access to the entire SRI portfolio composition
DNCA will provide on request the full ESG ratings and analysis of companies
        

Progress achieved

DNCA publishes the entire portfolio of SRI funds on its website including line by line, the ESG ratings and the exposure to sustainable transition themes

DNCA provides on request the full ESG analysis of companies invested in portfolios.  

06.2. Additional information.


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