A responsible vision of finance

GROUPAMA ASSET MANAGEMENT CLEARLY POSITIONED

From the outset, Groupama Asset Management has positioned itself in the camp of responsible investment, since from the early 2000’s the group has conducted studies on the practice of its profession as asset manager in harmony with its goal of sustainable development, with the aim of establishing SRI as an integral part of a long-term strategic vision of generalized integration.

Pioneer of RI

Groupama Asset Management has been actively committed to Socially Responsible Investment (SRI) for more than fifteen years, and it now reaffirms its conviction that the integration of environmental, social and governance (ESG) criteria into the heart of an issuer’s strategy can only improve the issuer’s performance.

Groupama AM’s expert analysis and research reports, its management products and its mobilization in numerous French and international decision-making bodies make the company today one of the recognized market leaders in the field.

The expectations of clients, who are now seeking more stable and sustainable finance, have played a part in this development, and Groupama Asset Management has naturally established itself as a reference for clients who desire a combination of high performance with respect for the criteria of CSR.

The evolution of the law in France (successively the “Loi Grenelle II” followed by the law on energy transfer for green growth) has without doubt accelerated the consideration of these criteria by all stakeholders.

In this new, favourable context, Groupama AM has decided to reinforce its responsible investment strategy by introducing a clear vision based on two major aims: integration of environmental, social and governance (ESG) criteria and the commitment of the company to all stakeholders.

Deeper corporate commitment

The company’s commitment is reflected firstly in its willingness to improve ESG practices by means of dialogue with issuers. The way to improve ESG practices is by establishing and maintaining more regular and more structured discussions with issuers concerning their ESG practices.

At the same time, Groupama AM is working with its clients to raise awareness and in some cases to provide support and consulting. Awareness raising consists in encouraging clients to share their convictions as responsible investors.  Support is provided, where necessary, in the implementation of specific ESG charters or commitments.

 

Dialogue with issuers

At Groupama AM, shareholder commitment, is not a question of activism but reflects a deliberate and constructive approach on the part of one or more investors to demand that certain companies make real efforts to improve their ESG practices.

This commitment of the Group manifests itself in three major ways:

  1. Frank and recurring discussions with the senior management of major European companies;
  2. A rigorous voting policy (in place since 2001), which is systematically exercised and now covers 154 general shareholders’ meetings in 7 European countries;
  3. In addition to its votes at general shareholders’ meetings, the ability for Groupama AM discuss draft resolutions in advance with the companies before they are presented at the meetings.

Commitment to clients

Commitment to clients

To be a responsible investor means facing an altogether new challenge: how to manage an SRI and RI approach within a structured process.  Today, Groupama AM has met this challenge, as it demonstrates every day in the transparency of its reporting.

Groupama AM proposes the gradual, pragmatic integration of ESG criteria into a management mandate, and will assist in outlining and calibrating relevant operational criteria for investors wishing to define their RI/SRI approach

In the context of article 173 of the French law on energy transition, Groupama AM will provide support to its institutional clients in their specific reporting.  In addition, technical and educational support can be provided to the decision-making bodies of the investors.