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Sycomore Asset Management

PRI reporting framework 2020

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(B) Implementation: Thematic

LEI 07. Types of sustainability thematic funds/mandates

07.1. Indicate the type of sustainability thematic funds or mandates your organisation manages.

07.2. Describe your organisation’s processes relating to sustainability themed funds. [Optional]

Sycomore Shared Growth

The fund aims to invest in companies that have a positive impact on society. The stock selection process takes into account two dimensions of societal impact: the societal contribution of goods and services, which reflects how a company’s business is aligned with major societal issues, and corporate citizenship, which reflects how a company conducts its business and the more or less positive externalities that these choices entail for society. 

When assigning a rating for the societal contribution of goods and services, we review the company’s sales revenue in order to assess the contribution of each business line to the four pillars that we have defined : Access & Inclusion, Health & Safety, Human and Economic Progress and Employment. These pillars cover the priorities defined in the UN Sustainable Development Goals as well as broader human development themes.

The corporate citizenship grade is based on 7 qualitative criteria, such as business ethics, tax responsibility, relationships with local communities..., identifying both risks and opportunities arising from corporate behaviour. 

 

Sycomore Eco Solutions

We concentrate on businesses and sectors that interact strongly with the environment and analyse the environmental impact of each company's products and services. Therefore, Sycomore Eco Solutions focuses on five key areas: mobility and transport, the circular economy, renovation and construction, energy production and management, and ecosystem-related businesses. Our proprietary methodology relies on an environmental quantification process that measures, for each business, the extent to which companies align with the energy and environmental transition. The fund may invest only in companies that have a positive Net Environmental Contribution.

Also, the fund systematically steers clear of businesses that destroy natural capital. The investment approach is based on strong exclusion criteria (coal, intensive farming, minimum ESG rating...) and on a strategic stock selection process.

In addition to SRI labels, the fund has the French environmental label Greenfin. 

Sycomore AM also set up a strategic environment committee of experts with academic, institutional, corporate and NGO backgrounds. This committee is a venue for members to exchange critical and constructive views on complex environmental issues.

 

Sycomore Happy@Work

Sycomore Happy@Work was launched in 2015. It aims to invest in companies that recognise employee engagement and well-being as a key performance driver (several studies indicate that well-being at work reduces absenteeism, work accidents, turnover and drives creativity, engagement, sales and productivity).

We have identified five key pillars that enable employee happiness and engagement, at an individual level: equity, autonomy, sense of purpose and meaning, evolution and development and a good working environment.

A full assessment includes:

  • an analysis of how companies perform on the five pillars and how it is organised to manage human capital,
  • an assessment of other ESG metrics, since a minimum ESG score is required for a company to be eligible to the fund.

It is based on:

  • public documents and meetings with operational management (Human Resources teams for example) where we seek both quantitative and qualitative information,
  • on-site visits and employees’ interviews when possible for small companies when representative and relevant,
  • interviews of experts and ex-employees,
  • anonymous testimonies on specialized websites,
  • controversies assessments related to human capital management.

Sycomore Selection Responsable and mandates following the same investment strategy: 

Sycomore Sélection Responsable is a conviction-driven SRI multi-thematic fund. This concentrated portfolio invests in companies for their sustainability credentials, with a particular focus on those whose products and services contribute positively to solving environmental and social challenges in keeping with the Sustainable Development Goals (SDGs). Three criteria are used for stock selection: Net Environmental Contribution (NEC), Societal Contribution (SC) and SPICE Leadership. As a result, around 80% of the portfolio is exposed to companies that have a positive environmental or social contribution.


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