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Groupe Bruxelles Lambert SA

PRI reporting framework 2020

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

          Code of ethics
        

01.3. Indicate if the investment policy covers any of the following

01.4. Describe your organisation’s investment principles and overall investment strategy, interpretation of fiduciary (or equivalent) duties,and how they consider ESG factors and real economy impact.

As a patrimonial and engaged investor, GBL believes that effective management of ESG aspects by portfolio companies can have a positive impact on their long-term performance and their ability to create value in a sustainable manner. GBL consequently embeds ESG at all stages of its investment process and portfolio monitoring.

GBL incorporates the analysis of ESG aspects into its investment process with the aim to identify companies with sustainable business models over the long term. GBL believes that ESG compliance and commitments are drivers of sustainable growth and ultimately of long- term value creation for any company, and consequently contribute to maximizing its investments’ performance over the long run.

GBL thus invests in companies that share its principles and commitment with regards to the imperative need to behave responsibly and ethically as well as serve the whole of the community. GBL has an engaged ownership approach in the companies in which it invests and ensures through a direct engagement with their governance bodies that they are managed in a manner consistent with its responsible management philosophy, including its Code of Ethics and its ESG Statement.

 

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

Responsible investor commitment: As a patrimonial and engaged investor, GBL believes that effective management of ESG aspects by portfolio companies can have a positive impact on their long-term performance and their ability to create value in a sustainable manner. GBL consequently embeds ESG at all stages of its investment process and portfolio monitoring.

Investment process: GBL incorporates the analysis of ESG aspects into its investment process with the aim to identify companies with sustainable business models over the long term. GBL believes that ESG compliance and commitments are drivers of sustainable growth and ultimately of long- term value creation for any company, and consequently contribute to maximizing its investments’ performance over the long run.

In terms of ESG risk assessment, negative screening is conducted with the aim to exclude companies that do not comply with GBL’s responsible management philosophy, including its Code of Ethics and its ESG Statement. In this context, GBL will ascertain whether practices in relation to environmental, social and governance responsibility are consistent with international standards.

Positive screening of investment opportunities consists in taking into account ESG-related tailwinds forming part of GBL’s investment mandate.

Both screenings are based on due diligence work carried out by third party ESG specialists, as well as on research reports provided by independent tier 1 ESG-rating providers. Due diligence scope varies according to the business nature of the considered investment target and may include:

  • from an environmental perspective: Resource efficiency, pollution prevention and management, ecosystems and biodiversity, climate change, environmental supplier and procurement standards, environmental product responsibility, etc;
  • from a social and governance perspective: Labor rights and working conditions, human rights and livelihoods, social supplier and procurement standards, business ethics and governance, customer and product responsibility, etc.

GBL thus invests in companies that share its principles and commitment with regards to the imperative need to behave responsibly and ethically as well as serve the whole of the community.

Portfolio monitoring: GBL has an engaged ownership approach in the companies in which it invests and ensures through a direct engagement with their governance bodies that they are managed in a manner consistent with its responsible management philosophy, including its Code of Ethics and its ESG Statement.

Each portfolio company remains responsible for developing its own ESG policies, programs and key performance measures. This is monitored by GBL’s investment team as part of the asset rotation guidelines. GBL believes, however, that it is necessary to promote common guidelines on responsible management within its various shareholdings.

In case of an incident arising at the level of a portfolio company and being reported to GBL through its governance bodies, monitoring would be ensured by GBL’s representative(s) within the relevant governance body, with the assistance of the relevant advisers. Any significant incident would be discussed, reviewed and monitored by the relevant reporting levels at GBL (including the CEO, the Chief Legal Officer and the Head of Investments). This escalation process was followed for the Syrian case which arose in 2016 in relation to LafargeHolcim.

In order to monitor appropriately its portfolio from an ESG perspective, GBL conducts on a yearly basis an in-depth risk assessment focusing on its portfolio companies.

This risk assessment has been structured by GBL to combine information from third-party ESG-rating reports and market data with proprietary data derived from (i) GBL’s in-house Compliance questionnaire (see below for covered areas) and (ii) the knowledge and expertise of GBL’s investment team on the portfolio companies and, more generally, their sectors.

On that basis, GBL’s ESG risk assessment does cover a wide scope of ESG factors including:

  • from an environmental perspective: Resource efficiency, pollution prevention and management, ecosystems and biodiversity, climate change, environmental supplier and procurement standards, environmental product responsibility, etc;
  • from a social and governance perspective: Labor rights and working conditions, human rights and livelihoods, social supplier and procurement standards, business ethics and governance, customer and product responsibility, etc.

This assessment aims at identifying, for each portfolio company, its key ESG risks, and, if assessed as material, (i) translating them into potential adjustments to the investment theses, (ii) reporting them to GBL’s Audit Committee and ultimately to GBL’s Board of Directors, and (iii) ensuring their monitoring by GBL’s representatives through the governance bodies of the portfolio companies.

01.6. Additional information [Optional].

          
        

SG 01 CC. Climate risk (Private)


SG 02. Publicly available RI policy or guidance documents

 

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

URL/Attachment

02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

URL/Attachment

URL/Attachment

URL/Attachment

URL/Attachment

URL/Attachment

URL/Attachment

02.3. Additional information [Optional].


SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

The Code of Ethics provides guidance in conducting business activities in accordance with the highest legal, ethical and professional standards. It is made available to all employees and the Directors, and notably covers compliance, responsible management, conflicts of interest, anti-corruption and anti-bribery, relations with third parties, respect at work and non-discrimination.

03.3. Additional information. [Optional]


SG 04. Identifying incidents occurring within portfolios (Private)


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