3 . ESG integration
We are convinced that integrating sustainability challenges requires adjusting business models
We want to be part of this transformation by incentivizing companies of our investments universe to adapt their practices and provide concrete solutions. Our exclusion framework We have set up an exclusion framework that is common to all our actively managed and open architecture investment vehicles. We favor engagement to any systematic exclusion mechanism for our discretionary exclusions : understanding the transition momentum is part of our responsible investor role, both for our clients and our stakeholders. Our products have adopted a common exclusion framework: ■ The Ottawa and Oslo conventions regarding controversial weapons (cluster bombs and landmines). We use the list developed by MSCI ESG Research. ■ International sanctions (UN, EU, OFAC, France, etc). ■ The fundamentals principles of the United Nations Global Compact (UNGC). ■ Our investment principles related to thermal coal sector which are based on Urgewald’s Global Coal Exit List. □ We no longer invest in companies developing new thermal coalmines or coal-fired power plants;
□ We no longer invest in, or provide any new financing to, companies of which: – More than 20% of revenues come from activities involving thermal coal; – More than 20% of the energy mix (per megawatt generated) is coal-based; □ We no longer invest in, or provide any new financing to, companies of which: – Annual production of thermal coal exceeds 10 megatons (MT) per year; – Installed coal-fired capacities amount to more than 5 gigawatts (GW);
Rothschild & Co Asset Management Europe | ESG policy
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