During 2019, we have evolved from the exclusionary plus best-in-class approach (and with some but minority ESG integration) to an ESG integration approach for all of our directly invested listed equity. In fact, in order to expand our capacities and knowledge, we have set up the roadmap for creating groups of independent experts to better include ESG-related themes into our investment thesis and in order to have more accurate valuation models. We have started with Banking and Energy sectors (autos and telecoms are about to start in Q1/2020) with the aim of expanding them to all critical sectors (such as industrial sector, chemicals, pharma or food, among others). In our internal reports that we prepare for equity investment committees, we have extensively included analysis of ESG specific themes, such as environmental analysis on the auto sector and therefore, impacting our valuation models through adjustments to growth prospects, calculation of WACC or impact on cash flow analysis.
In addition to the implementation of ESG in the portfolio management, two great steps in 2019 have been to write our own voting principles and reach an agreement with Alembeeks to provide us assessment of other voting points at the General Assemblies of firms.
As stated in previous modules, goals set at the BoD level for all AuM in Fineco for the 2019-2021 plan in terms of integration, ESG labelling, proxy voting, training of the workforce, promotion of RI in Spain, taking part in international forums, etc. are cross asset class and engage all the workforce in Fineco.