1. We assess environmental issues through our fundamental analysis. Climate related-risks and opportunities are included into our global vision and taken into account for each analysed company. To identify, assess and manage climate-related risks and opportunities, we have an environmental analysis which has 4 pillars depending on the sectors:
Strategic management of environmental (including climate) issues: identify physical risks, transition risks, opportunities related to climate change, governance on environmental issues, management risks process...
Change in business model: current positioning of finished products / activities, means implemented by the company to change its business model
Climate: carbon footprint, energy efficiency, internal carbon pricing, positioning the company in a 2°C scenario (new indicator in temperature)
Resource and externalities management: 1/ efficiency of the production tool: energy consumption, water consumption, protection of biodiversity, 2/ externalities management: waste management, circular economy
Therefore, these environmental and climate issues are taken into account in the final recommendation if they have or will have a material impact on the company's activities and results.
2. Green bonds: an in-house "Green bonds" methodology (updated in 2019). This approach aims to assign an internal assessment to each green bond. Four criteria are analysed: 1/ characteristics of the green bond (evaluation and selection process, management of proceeds, etc) 2/ environmental quality of the projects 3/ ESG strategy of the company 4/ transparency