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Groupama Asset Management

PRI reporting framework 2020

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Objectives and strategies

SG 05. RI goals and objectives

05.1. Indicate if and how frequently your organisation sets and reviews objectives for its responsible investment activities.

05.2. Additional information. [Optional]

In 2018, Groupama AM decided to launch a new ESG Strategy, in order to put in place a more formalized approach of ESG integration into our investment decisions and to enhance our ability to answer our clients' demands on ESG aspects. For that, a new division was created and the Director of Research was also appointed Director of ESG Strategy, directly referring to our CEO. The Head of ESG Integration, reporting to the Director of Research and ESG Strategy is in charge of implementing this ESG Strategy and to be the point of contact on all ESG aspects for the different teams. 

Our ESG-Climate strategy is set annually (and reported in our Article 173) but the objectives are validated and the action plan reviewed more frequently : The roll-out of the ESG-Climate policy takes place in a dedicated committee that meets quarterly and the Executive Committee is informed on a monthly basis of the deployment of the ESG strategy and climate commitments in particular

 

 


SG 06. Main goals/objectives this year

06.1. List the main responsible investment objectives that your organisation set for the reporting year.

Responsible investment processes

Key performance indicator

          Number of ESG training session
        

Progress achieved

During 2019, Training sessions for the analysts team continued (9 were organized). Those training sessions enables former financial analysts and former ESG analysts to share their practices for ESG analysis, and to share the main ESG topics of the moment. 

In 2019, within the new ESG Strategy, Groupama AM has decided to strongly reinforced its ESG integration policy, notably through the organization of training sessions for the different departments on our ESG policies. This includes training for porfolio managers, marketing, reporting, sales and RFP's team. The training started at the end of 2018. 

Number of ESG training session in 2019: 12. 

Key performance indicator

          The degree of involvement of analysts and fund managers in shareholder commitment
        

Progress achieved

In the 2019 we have defined the objectives and priority areas of shareholder commitment. We focused both on individual and collaborative engagement.

1/Individual engagement :

  • Annual General Assemblies season

Before voting in AGM we discuss the resolutions with companies and informe them about our voting policy's principles . Analyst and find managers participate together in these meetings. The changes on voting policy are presented every year to the analysts and funds managers. In 2020 the voting policy will be sent to companies in which we are a significant shareholder inviting them to the dialogue.

  • All year long :

Analysts are meeting with top management of many companies and discuss ESG topics with them. More specifically we focus the companies with ESG risks (controversies, operational risks or activity..). So, we start the dialogue with them : we explain to them our methodological approach, calling for improvements on identified ESG topics. 

2/ Collaborative engagement

Groupama AM participate in initiatives that meet our commitment objectives (more details below). Some of those initiatiatives leads to the individual enagement with targeted companies. Analysts then particpate to group conference calls with these companies.

 

 

 

 

 

 

Key performance indicator

          1/ presentation of the ESG strategy during quarterly employee meetings 2/ news related to ESG activities published in our intranet
        

Progress achieved

ESG Strategy evolutions and objectives were presented in each of of our quarterly meetings gathering all collaborators. 

All ESG initiatives and related-news are published on our intranet website : In 2019, we published  9 news related to  :

  • ESG and PRI : engagement
  • ESG definitions
  • Environmental Policy at Groupama AM
  • Climate methodology
  • Article 173 - ESG information for investors 2019
  • Circularr economy
  • Decarbonation
  • Sustainable Finance 
  • The signature of new collaboratives initiatives

 

Key performance indicator

          number of participations to collaborative initiatives
        

Progress achieved

In 2019 we improve our engagement collaborative process. We defined three objectives and three priority areas of our shareholders commitment. A methodology for selecting, validating and implementating each collaborative commitment was reinforced.  Each initiative should meet at least one of our objective and possibly match with at least one of our priority area. In the end, each new commitment must be signed directly by our CEO.

We then signed six engagements through the PRI collaborative platform: 

  • Global Investor Statement to Governements on Climate Change
  • Climate Actions 100+
  • Alphabet Investor Letter on Board Oversight of Sosietal Impact
  • SEC Petition
  • Investor Expectations on Climate Change for Airlines and Aerospace companies
  • Investor Statement on Access to Medicine

Key performance indicator

          Share of outstandings amount incorporating ESG criteria
        

Progress achieved

Increase from 1/3 in 22018 to 2/3 in 2019

          Develop new range of ESG products
        

Key performance indicator

          Launch of new ESG funds
        

Progress achieved

Another main objective of our ESG Strategy is to develop new ESG products. For that, we started working in 2018 within a two dedicated working groups, composed of portfolios managers, analysts, and the marketing team. These  working groups met every week and achieved the work for two new funds.

1/ thematic fund : G Fund Futur for generations
2/ ESG impact fund : G Fund Global Green Bonds Fund

Financial performance of investments

ESG characteristics of investments

Key performance indicator

          Improve access of portfolio managers to ESG data
        

Progress achieved

In 2019, ESG quantitative ratings and the carbon footptrint of companies were made available in the portfolio managers tool, SimCorp Dimension, so they now directly access this ESG data alongside with the financial data concerning their portfolio.  

 

Key performance indicator

          Improving our internal ESG ratings
        

Progress achieved

In 2016 we have developed a proprietary and evolutive tool. This tool, called "NotesESG", collects all ESG data sent by ESG providers and then calculate internal ESG rating using our in-house ESG methodology. This tool is used by both fund managers and analysts.

In 2019 we worked :

1/ On extension of the coverage of ESG data and environmental data to worldwide

2/ On the implementation of new ESG quantitative ratings

2/ To continue to  improve the calculation method 

Key performance indicator

          Calculation of carbon footprint on portfolios
        

Progress achieved

1/ Groupama AM is measuring the carbon footprint of our all ESG funds :

  • SRI portfolios, Euro Capital Durable and Euro Credit SRI  : the carbon footprint is measured since 2015, with a goal of having a better carbon footprint than their benchmarks. Their carbon footprint are better then their benchmark by 20%-30% in, average.
  • Thematic fund "G Fund Future for Generation" :  the evolution of carbon footprint is measured each month with a goal of reducing the carbon footprint year on year.
  • ESG impact fund "G Fund Global Green Bonds : the evolution of carbon footprint is measured each month with a goal of having permanently a better carbon footprint than its benchmark

2/ Other portfolios : carbon footprint calculation is made on client's demand

3/ Asset Liability Management :  we measure the carbon footprint of our direct equity and corporate bonds investment. 

Other activities

Key performance indicator

          Organization of the work of different  committee, related to the RI matters
        

Progress achieved

The Director of Research and ESG Strategy is :

  • Chairwoman of AFG (French Fund Managers Association)  RI committee. We participate in several working group. 
  • Member of the Finance For Tomorow initiative

  • Chairwoman of the Non-Financial Commission of the SFAF until December 2018 (French Association ot Financial Analysts)

other description (1)

          Improve knowledge of retail-clients on sustainable finance
        

Key performance indicator

          Publication of a Sustainable Finance Guide for retail customers
        

Progress achieved

The guide was published in october 2019. This guide This guide is distributed through Groupama's distribution networks

https://www.groupama-am.com/wp-content/uploads/2530-Guide-p%C3%A9dagogique-de-la-finance-durable-GROUPAMA-AM.pdf

06.2. Additional information.


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