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Lazard Frères Gestion

PRI reporting framework 2019

You are in Direct - Listed Equity Incorporation » ESG incorporation in actively managed listed equities » Implementation processes » (A) Implementation: Screening

(A) Implementation: Screening

LEI 04. Types of screening applied

04.1. Indicate and describe the type of screening you apply to your internally managed active listed equities.

Type of screening

Screened by

Description

For our SRI investment strategy, we focuses on a best-in-class approach (an ESG approach selecting the best-rated issuers within each business sector), performed by our extra-financial partner, Vigeo Eiris. Lazard Frères Gestion has selected ESG investment criteria and attributed each one with a specific weight. Human resources and the environment carry the highest weights, 40% and 30% respectively. Therefore, companies that have a negative score in Human Resources and have a global rating that is negative are ruled out of the investment universe.

Criteria and weights:

1. Human resources (40%)

2. Environment (30%)

3. Business behaviour (10%)

4. Human rights (10%)

5. Community involvement (10%)

Each criteria is rated on a scale ranging from "--" for non-concerned companies to "++" for pioneer companies. Ratings are relative and adapted to each sector.

Corporate governance is evaluated internally, and has to be satisfactory based on our analysis.

In addition, we integrate ESG criteria into our valuation models. This integration is applied to all our equity funds.

Screened by

          Ottawa and Oslo conventions and GAFI country list (Groupe d'Action Financière)
        

Description

We rule out any investments in companies involved in the manufacture, transport or sale of antipersonnel mines and cluster munitions.

Lazard Frères Gestion has drawn up a country exclusion list (FATF banned countries) and a country watch list (countries under international sanctions or embargoes) for which permission must be obtained from the Chief Compliance Officer before any investments.
These lists include countries likely to be a major risk in terms of money laundering and reputation.

04.2. Describe how you notify clients and/or beneficiaries when changes are made to your screening criteria.

For any major changes regarding Lazard Equity SRI, because it is a SICAV, changes have to be approved by a Board of Directors.

Notification to clients/beneficiaries occurs post changes, with the updating of commercial documents within a maximum time-limit of 3 months.


LEI 05. Processes to ensure screening is based on robust analysis

05.1. Indicate which processes your organisation uses to ensure screening is based on robust analysis.

05.2. Indicate the proportion of your actively managed listed equity portfolio that is subject to comprehensive ESG research as part your ESG screening strategy.

05.3. Indicate how frequently third party ESG ratings are updated for screening purposes.

05.4. Indicate how frequently you review internal research that builds your ESG screens.

05.5. Additional information. [Optional]


LEI 06. Processes to ensure fund criteria are not breached (Private)


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