Sustainable finance

A COMMITMENT TO SOCIALLY RESPONSIBLE FINANCE

As the world continues to change, and as concerned citizens respond by upping their demands and expectations, the need for a responsible approach to finance has become more vital than ever. Having already adopted this approach many years ago, Groupama Asset Management is now determined to advance this cause still further every day. By including Environmental, Social and corporate Governance (ESG) criteria in its analyses and investment decisions, Groupama Asset Management enables its customers to direct their investments with absolute confidence towards companies that are making real contributions to building the world of tomorrow.
This is a conviction-based management approach, combining both performance and responsibility, and it has the ambition of making a practical impact on the major challenges faced by society. The establishment of sustainable finance will help to promote sustainable agriculture, support the reshoring of the production of essential goods, contribute to the progression of gender equality and foster the protection of our environment.

 

TO UNDERSTAND OUR COMMITMENT

ESG Report 2022 Article 29 – Disclosure concerning the incorporation of ESG criteria in the investment policy of Groupama AM

SFDR Sustainability‐related Disclosures in the Financial Services Sector

Guide to Sustainable Finance – 2022 Edition

Click below to see our voting and shareholder engagement policy

Policies

MEETING THE CHALLENGES OF THE 3 MAJOR TRANSITIONS

Additionally, this approach to finance, which takes into account the major transformations of our society, enables us to better identify risks and detect new opportunities for added value.

So, by including ESG criteria in its analysis, Groupama Asset Management is able to discern with precision the transitions that are today impelling deep modifications in corporate business models.

This is a demanding and visionary approach that aims to better evaluate the impact of these transitions on the future performance of the companies concerned.

A RECOGNIZED COMMITMENT

Anticipating, integrating and analyzing the impact of these transitions means having an “avant-garde” vision and being able to propose high-performing finance that is both inspiring and determined. Once again, this year, Groupama AM is ranked in the top 10 French companies in terms of brand commitment to sustainable finance, coming in 6th place in the Avant-Gardist category. Only 16 % of asset management companies are even included in this category (RIBI Index 2021)

Avant-Gardist-logo RIBI

As a pioneer in this sustainable finance approach, with the launch of its first responsible investment fund in 2001,, Groupama Asset Management today pursues a strategy of generalized incorporation of the approach, with 3 key goals:

  1. develop our fundamental issuer analysis method, to include the challenges derived from the three transitions,
  2. innovate, to further the development of our product range,
  3. satisfy the demands of customers in the field of sustainable finance.

A CONSTANT COMMITMENT

Accompagnement

At Groupama AM, we have observed increasing investor demand for made-to-measure services that meet specific requirements. This can concern certain aspects of the voting or shareholder engagement policy or the transparency of ESG information. We have industrialized several ESG report formats with one overriding condition: the data must provide an instructive spotlight for the customer. That is why we prioritize the quality of information over its exhaustiveness.

Today, our customer support ranges from bringing the prospectus into compliance with regulatory requirements all the way up to risk control and due application of ESG management rules.

SHINING A LIGHT ON INVESTMENT CHOICES

INCORPORATION OF ESG CRITERIA

Our approach aims to incorporate ESG into every asset class (equity, credit and sovereign bonds). This approach is based on research that culminates in one unified financial and ESG recommendation and in the identification of the highest-risk issuers in terms of ESG, by means of the List of Major ESG Risks. Proprietary tools disseminate our internal research to the relevant deciders, so that ESG criteria can be incorporated in investment processes, in accordance with the specific characteristics of each asset management mandate.

A unified recommendation: Through our combined 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.

With the fusion of the roles of financial analyst and ESG analyst under a single job description in 2016, the process of incorporating  ESG factors, begun in 2003,.reached a new milestone.

Proprietary tools: The ESG ratings and research are available to all Groupama AM portfolio managers . For example, our managers have access to proprietary tools that can display the results of analyses per sector and security.

SHAREHOLDER ENGAGEMENT AT GROUPAMA AM

For Groupama AM, shareholder engagement signifies a proactive 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.

Individual engagement:

  • Direct and recurrent dialogue on ESG subjects with the top management of European large caps, combined with specific initiatives with target companies;
  • A rigorous voting policy (in place since 2001), which is updated annually. Our exercise of voting rights mobilizes managers, analysts and middle office and covers more than 330 general meetings in all the countries of the European area.
  • In addition to voting at shareholder meetings, Groupama AM is able to hold upstream discussions with these companies on the draft resolutions to be presented at their General Meetings.

Collaborative engagement:

  • Since 2018 Groupama AM has joined 19 collaborative action initiatives, concerning in particular climate, health and living and working conditions in retirement homes.

Voting policy 2021

Report on voting 2020

Shareholder Engagement Policy 2021 and Annual Report 2020