METROPOLE Gestion implements its engagement by exercising voting rights on ESG matters in accordance with its voting policy.
METROPOLE Gestion has set up an organization that coordinates all the information needed to exercise the voting rights attached to the securities held by the portfolios for which it exercises voting rights.
As a matter of principle, METROPOLE Gestion favourably addresses any resolutions relating to ESG issues that are put to the vote.
Whenever it deems it necessary, METROPOLE Gestion reserves the right to ask questions of companies, reject resolutions or support external resolutions.
We also conduct engagement actions prior to shareholder meetings in order to address or even influence the content of resolutions to be put on the agenda to ensure it is in line with the interests of minority shareholders and is in accordance with our governance principles.
During its weekly management committee meetings, METROPOLE Gestion discusses issues relating to exercising voting rights and in particular considers ESG topics. In this context, in the event of significant controversy, proven ESG risk, absence or insufficient significant improvement within the company being examined, the management team may decide to reduce or liquidate its position.
As regards exercising voting rights, since 2005 METROPOLE Gestion has subscribed to the voting rights service offered by ISS.
The scope of this service includes companies whose securities are listed on the main global stock exchanges. METROPOLE Gestion therefore benefits from 100% coverage rate through this service.
This service provides decision-making support by studying draft resolutions submitted to shareholders and makes it possible to clearly identify and monitor ESG related resolutions.
METROPOLE Gestion also engages with companies in which it invests under three ways: individual engagement, thematic engagement and / or collective engagement.
Individual engagement covers the actions carried out directly by METROPOLE Gestion through dialogue with companies and exercising voting rights on ESG resolutions.
Thematic engagement is the result of reflection, carried out and reviewed each year internally, on very specific topics (for example reducing carbon emissions, water consumption, waste recycling, etc.).
Collective engagement is realized collectively / together through groups or associations of investors in order to increase influence on companies. METROPOLE Gestion participates in collective actions concerning ESG matters whenever it deems it necessary in the interests of investors and stakeholders.
To support the dialogue with companies, METROPOLE Gestion has set up analysis and monitoring tools that are operated by the management team.
Following each company visit, a company factsheet is completed covering financial, extra-financial and balance sheet analysis. About 1200 factsheets are held in a library kept up to date by the fund management team. These factsheets identify ESG topics, ensure they are taken into account, monitor controversies and see how the measures taken by the companies evolve over time.
As part of our ESG research on companies, we use the Eikon database (Refinitiv, formerly Thomson Reuters), one of the largest non-financial databases (5,000 companies worldwide), with stable data over time, bringing together official corporate data (annual reports, sustainable development reports) and controversies originating from news agencies.
As a signatory of the CDP, we participated in 2019 to the " Non Disclosure Campaign", a collective engagement campaign in order to prompt companies for more and better disclosures on climate related risks and opportunities.