The explicit inclusion of ESG Risks and opportunities into traditional financial analysis and investment decisions must be based on a systematic process and appropriate research sources. The integration process focuses on the company's management of ESG issues and the potential impact on company financials (positive and negative), which in turn may affect the investment decision.
LYXOR works in closed collaboration with its selected partners:
ESG rating agencies (MSCI, Vigeo...) and Index providers, index advisors (CBI, Equileap, Solactive, MSCI, RobecoSAM...)
Each partnership has been put in place following a rigorous selection based on request for proposals and due diligence processes addressing specific topics.
- ISS services (Institutional Shareholder Services) on voting recommendations in addition of LYXOR internal research on corporate governance. The voting recommendations are based on LYXOR's voting policy,
- MSCI services as ESG data provider,
- MSCI services on Climate data for listed issuers and sovereign assets,
- Vigeo Eiris services as part of LYXOR’s ESG evaluation applied to unlisted assets (SME/ETI),
- CBI, Equileap, Solactive, MSCI, RobecoSAM, etc as index providers or advisors.
Lyxor uses the services of ISS Ethix to identify companies that are considered in breach of its Defence Policy.
ISS-Ethix identifies companies that are at risk of being involved in controversial weapons by following several parallel research paths:
› Identification of risk countries and relevant weapons programmes
› Active screen of weapons programmes
› Active screen of companies in risk sectors Data mining for corporate involvement in controversial weapons, in particular information about the technical aspects of weapons programmes and their status, is carried out by our in-house experts supported by an extensive network of military and arms industry experts.
ISS-Ethix conducts a comprehensive review of open sources such as company publications, contract awards notifications by government authorities and military specialized magazines as well as publications by research organizations and NGOs.
The process and analysis can be found at: https://www.issgovernance.com/file/products/iss-ethix_controversial-weapons-screening.pdf