Main ESG Risks : Groupama AM excludes, from ISR funds, companies facing several material and recurring controversies on ESG issues and companies with very low governance standards according to our internal analysis. We receive specifics researches on those issues from external researches providers and we complete it by in-house qualitative analysis. The score of companies identified in Main ESG risks is downgraded to 0 in our internal tool "Notes ESG".
Carbon Opt-out policy : progressive disinvestment of companies for which more than 30% of Revenue or Production mix is linked to coal, and no new investment in companies for which oil sands represents more than 15% of their reserves.
Thematic Fund: exclusion of all companies involved in tobacco products and gambling in addition to the exclusions detailed above
Each stock is screened according to E, S and G indicators. Governance analysis represents for all sectors 33% of the final rating, whereas E and S pillar's weight depends on the sector. For example, for the energy sector social indicators represents 30% of the final rating and environment one's 37%. In the social pillar, the main indicators analysed are health and safety, human capital (management of skills) and corruption. In the environmental pillar it is GHG emissions, prevention of accidental pollution, management of resources, low-carbon strategy.
The choices of the relevant indicators and their weighting in the final rating are made by ESG analysts, and are reviewed regularly (usually every 18 months).
Then, through the quantitative approach, the valuation grid is completed quarterly thanks to an in-house developed tool "NotesESG" with ESG rating agencies research datas : Vigeo as for E&S pillars, MSCI /GMI (GovernanceMetrics International as for G pillar.
Each company is rated on a scale from 0 to 100. Each sector of the universe is then broken down in 5 quintiles (quintile 1 is composed of the 20% best rated companies within each sector and quintile 5 is composed of the 20% worst rated companies within each sector).
In 2019, we added a list of the most advanced issuers in terms of ESG issues. The companies on this list are identified by analysts based on their internal analysis. The choice must be justified in a dedicated file. The score of those companies is then upgraded to 100.
The clients are regularly informed through quarterly reporting's about all changes made.
Groupama AM excludes all investments in companies that have activities in the personal mines and/or cluster bomb businesses and/or depleted uranium weapons..