Convinced of the need to include Environmental, Social and Governance (ESG) factors in investment analysis and decisions, Groupama AM has put its full weight behind a rethink of its profession, in order to place Responsible Investment (RI) at the heart of a strategic vision for the long term, with generalized incorporation.
Groupama AM aims to offer its customers a resolutely active, conviction-based management approach, with an emphasis on medium to long-term investment. This conviction-based style of investment management requires a good understanding of the transformations taking place in our society, prompt and effective identification of risks and rapid detection of the new opportunities for generating added value. ESG provides a key to understanding the three transitions that are profoundly transforming today’s corporate models:
The Groupama AM strategy aims to meet three key requirements:
Groupama AM is one of the founding signatories of the Principles for Responsible Investment (PRI), a key initiative for responsible investment launched in 2006 in partnership with the UN. This initiative brings together the world’s leading asset owners and investors in support of six shared principles that aim to promote long-term responsible investment and the incorporation of ESG.
Every year, Groupama AM provides a report on our ESG strategy and our performance in the domain of responsible investment. This evaluation report is available to the general public.
Groupama AM proposes the gradual, pragmatic incorporation of ESG criteria into its management mandates and will assist in defining and calibrating appropriate operational criteria for investors wishing to take ESG factors into account in their investment management.
Our approach aims to incorporate ESG in every asset class (equity, credit and sovereign bonds). The approach is based on research that culminates in a single combined financial and ESG recommendation, with the identification of the highest-risk issuers in terms of ESG, by means of the List of Major ESG Risks. Proprietary tools disclose this internal research to the relevant deciders, so that ESG factors can be incorporated in the investment process, in accordance with the specific characteristics of each asset management mandate.
A single recommendation: With our fundamental financial and ESG analysis, we aim to identify the players that are best positioned or most at risk with regard to the three transitions – digital, demographic and environmental – that are currently causing upheaval in our societies.
2016 marked a further step in the incorporation of ESG, which was initiated in 2003 with the concentration of the roles of financial analyst and ESG analyst under a single job description.
Proprietary tools: The ESG ratings and research are available to all Groupama AM portfolio managers . For example, managers have access to the NotesESG© and AvisRecherche© proprietary tools, which enable them to display the results of analyses by sector and by value.
An SRI range composed of three funds:
For Groupama AM, shareholder engagement is a deliberate and constructive initiative by one or more investors to demand that identified companies make real efforts to improve their ESG practices. Our approach is based on both individual and collaborative engagement and on our strong presence on the Paris market.
Collaborative engagement: participation in collective actions to promote shareholder dialogue as part of the PRI platform. Since 2017, Groupama AM has taken part in the actions concerning cybersecurity.
Groupama AM has been one of the leading engaged influencers on the Market since the early 2000s. Groupama AM plays a key role in various working groups, in the aim of promoting and improving responsible investment practices. Most notably, Groupama AM has chaired the Responsible Investment committee of the French Asset Management Association AFG (“Association Française de Gestion”) since May 2015 and co-chaired the extra-financial committee of the French Society of Financial Analysts SFAF (“Société Française des Analystes Financiers”) since 2014.