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.