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Lyxor Asset Management

PRI reporting framework 2020

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You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income » Implementation processes

Implementation processes

FI 01. Incorporation strategies applied

Indicate (1) Which ESG incorporation strategy and/or combination of strategies you apply to your actively managed fixed income investments; and (2) The proportion (+/- 5%) of your total actively managed fixed income investments each strategy applies to.
SSA
2 Screening alone
0 Thematic alone
0 Integration alone
98 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%
Corporate (financial)
100 Screening alone
0 Thematic alone
0 Integration alone
0 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%
Corporate (non-financial)
48 Screening alone
0 Thematic alone
0 Integration alone
2 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
50 No incorporation strategies applied
100%

01.2. Describe your reasons for choosing a particular ESG incorporation strategy and how combinations of strategies are used.

  

On SSA : Lyxor will not invest for legally reason in sovereign debt of countries sanctioned by United Nations.
 Country' listed on the French list of non-cooperative states and territories or the GAFI list (jurisdictions with deficiencies in the standards for combating money laundering and terrorist financing).

On Corporate (financial & non-financial): LYXOR applies  exclusion lists :

- LYXOR has decided to divest of the most exposed actors by excluding companies whose turnover from activities related to the extraction of thermal coal is greater than 10% and companies that belong to the energy sector, of which more than 30% of electricity generation (energy mix) comes from coal.

- Exclusion list that aggregates the firms that are involvement in activities linked to prohibited or controversial weapons (anti-personnel mines, cluster bombs, depleted uranium weapons); wherever legally possible and independently enforceable by Lyxor.

- LYXOR is able to provide its clients with a "norm-based exclusion" list, used in some of its sustainable investment solutions, excluding companies associated with serious and repeated breaches of the principles of the United Nations Global Compact.

 

 

01.3. Additional information [Optional].

 

Regarding exclusion list: 

As of July 31st, 2019, LYXOR has taken the commitment 1 to divest itself from coal while strengthening its dialogue with the companies concerned in order to encourage them to be more transparent and to take into account the risks and opportunities associated with climate change. LYXOR has thus decided to divest of the most exposed actors by excluding companies whose turnover from activities related to the extraction of thermal coal is greater than 10% and companies that belong to the energy sector, of which more than 30% of electricity generation (energy mix) comes from coal.

These criteria are applied by the entities of the LYXOR's Group according to the notion of 'best efforts' and taking into account legal and commercial constraints.

Lyxor applies an exclusion list based on its Defense Policy and strives not to invest in companies identified as being involved in activities linked to prohibited and controversial weapons such as cluster-munitions and anti-personnel mines and depleted uranium weapons.

The list is applied to Lyxor's swap based ETFs ,its Absolute Return funds, Risk Based and Solutions business as well as its Managed Account Platform, wherever legally possible and independently enforceable by Lyxor

LYXOR is able to provide its clients with a "norm-based exclusion" list, used in some of its sustainable investment solutions, excluding companies associated with serious and repeated breaches of the principles of the United Nations Global Compact. These ten principles of the Global Compact are derived from international standards and guide corporate behaviour in the areas of Human Rights, Labour, Environment and Corruption.

Example :

LYXOR has developed for a French institutional, a dedicated mandate to finance French SMEs and intermediate-sized companies that incorporate an ESG focus. This SMEs mandate, includes before each investment decision, an ESG Pre-Check that aim to evaluate an ESG risk score (as well as exclusion of controversial sectors, tobacco, coal...). Moreover, after the initial investment LYXOR will carry out every year an ESG due diligences on these companies, to analyze their strengths and weaknesses and to encourage them to improve their ESG integration.  

 

 

 


FI 02. ESG issues and issuer research (Private)


FI 03. Processes to ensure analysis is robust

03.1. Indicate how you ensure that your ESG research process is robust:

03.2. Describe how your ESG information or analysis is shared among your investment team.

          An  ESG & Climate risk assessment is performed on  actively managed  Fixed Income funds. Monthly reporting are provided to investment staff and clients on demand.
        

03.3. Additional information. [Optional]


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