5. Monitoring & Controls
Several teams are in charge of controls at Rothschild & Co Asset Management Europe. These departments are independent and are at the service of fund managers. Risk management Rothschild & Co Asset Management Europe has a permanent Risk Management function hierarchically and operationally independent of the operating units. It reports directly to the chief executive officer and is under the operating responsibility of the RMM group’s chief risk manager. Risk Management has the human and technical means necessary to carry out its tasks properly. The company does not outsource this task. Risk Management measures and monitors all risks arising from managing of portfolios, including sustainability risks. Within the framework of its purview, Risk Management draws up a map of financial and extra-financial risks that aims to identify and manage the risks that the portfolios are exposed to, including sustainability risks. Risk Management supervises limits on a daily basis, requirements and constraints specific to funds (AMF doctrine, SRI or Towards Sustainability certifications, SFDR). This mainly involves compliance with: ■ DProduct-specific exclusions ■ Weighted-average rating objectives, issuer minimum ratings ■ KPI and related objectives ■ Taxonomic alignment and sustainable investments minimums ■ Reinforcement/purchase bans in case of controversies ■ Calculation of PAIs (principle adverse impacts) In the event of breaches, risk management is in charge of disseminating the information within the organisation. Compliance The mapping of non-compliance risks, of operational risks and conflicts of interest take ESG risks into account. The compliance activity plan includes ESG actions and controls (in particular reviews of regulatory policies and reports, labels, etc.). On a daily basis, the department monitors compliance with the exclusions regarding: ■ Controversial weapons prohibited by the Oslo and Ottawa conventions ■ International sanctions ■ United Nations Global Compact (UNGC) ■ Investment principles for the thermal coal sector The Compliance team is in charge: ■ of regulatory monitoring to ensure that any new regulation has been addressed by the company; ■ of offering assistance and information to employees to ensure awareness regarding their professional obligations.
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ESG policy | Rothschild & Co Asset Management Europe
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