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MONETA ASSET MANAGEMENT

PRI reporting framework 2020

You are in Direct - Listed Equity Incorporation » ESG incorporation in actively managed listed equities » Implementation processes

Implementation processes

LEI 01. Percentage of each incorporation strategy

01.1. Indicate which ESG incorporation strategy and/or combination of strategies you apply to your actively managed listed equities; and the breakdown of your actively managed listed equities by strategy or combination of strategies.

ESG incorporation strategy (select all that apply)

Percentage of active listed equity to which the strategy is applied — you may estimate +/- 5%
100 %
Total actively managed listed equities 100%

01.2. Describe your organisation’s approach to ESG incorporation and the reasons for choosing the particular strategy/strategies.

Within the framework of the French energy transition law and the regulatory obligation to publish an energy transition report reviewing our practices and the carbon footprint of our funds, we have carefully studied the subject of different measures and different approaches to sustainable development in portfolio construction. This work confirmed a number of intuitions that we had:

- Sectoral bias and exclusion short cut: highly carbon-intensive sectors such as Materials can be excluded from a portfolio to improve its carbon footprint, however this is too simplistic a short cut because these sectors remain necessary for the economy... and to other sectors with a better carbon footprint.
- The trap of a fixed image: businesses change and it may be preferable to value companies going in the right direction. The notion of trajectory is therefore key in our view.
- Disparate data quality: the quality of transparency and reliability of data published by companies remains uneven at present. Basing a portfolio construction on only quantified data and on "checked boxes" is therefore a pitfall for us to avoid.

As a result, none of our funds takes environmental, social and governance criteria into account in their investment policies in a systematic and binding manner. We wish to continue to choose investments on a case-by-case basis on their financial merits, with a strong desire to take part in financing innovative projects committed to sustainable development. The idea is not to pursue an exclusion policy or sectoral allocation determined by the various SRI labels.

We strongly prefer to develop a thoughful approach:

From these findings and our desire to remain stock-pickers, the concept of ‘innovative share’ was born. We will aim to prioritise investments in companies that have the following attributes:

- companies with highly innovative technology
- suppliers of innovation technology or energy services
- companies directly involved in the energy transition
- companies with a positive societal impact

Our ambition is therefore to increase this innovative share in our portfolios by studying more and more companies that could qualify in this group.

01.3. If assets are managed using a combination of ESG incorporation strategies, briefly describe how these combinations are used. [Optional]


LEI 02. Type of ESG information used in investment decision (Not Completed)


LEI 03. Information from engagement and/or voting used in investment decision-making (Not Completed)


(A) Implementation: Screening

LEI 04. Types of screening applied

04.1. Indicate and describe the type of screening you apply to your internally managed active listed equities.

Type of screening

Screened by

Description

We screen ESG score of all issuers of our investments.

04.2. Describe how you notify clients and/or beneficiaries when changes are made to your screening criteria.

Our methodology and results of our portfolio ESG score are annually updtaded in our TEE report (available on our website).


LEI 05. Processes to ensure screening is based on robust analysis

05.1. Indicate which processes your organisation uses to ensure ESG screening is based on robust analysis.

05.5. Additional information. [Optional]


LEI 06. Processes to ensure fund criteria are not breached (Not Completed)


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