1. Our approach
A sustainable approach to performance
100 % of ESG integration in our assets under management 96 % of our open-ended are Articles 8 or 9 SFDR
Initiated more than a decade ago, our approach to sustainability is consistent with our investment management DNA, i.e., creating value for our clients by anticipating structural evolutions in the market. As conviction-based fund managers, we are guided in our investment decisions by 3 key principles:
Integrating sustainability issues into financial analysis Sustainability criteria are not only extra-financial but must be integrated into the overall assessment of an asset as major contributors to the performance. That’s why we decided to combine both financial and ESG analysis. Having convictions means going beyond a regulatory vision or an “extra-financial process” to establish a more comprehensive evaluation of the robustness and relevance of a business model, the credibility of a strategy, and the ability to contribute to the transformation towards a more sustainable world. Supporting all economic players through a transition approach We believe that the transition towards a more sustainable world requires integrating all sectors, including the least virtuous. Even so, embracing a transition goal requires rigorous analysis combined with a long-term vision. We are convinced that by supporting companies from all industries we will achieve a more significant sustainable impact, which shall be associated with a significant increase in market value. Participating in the development of a more inclusive economy A long-lasting transition can only be achieved through a socially acceptable process Our approach intends to articulate the environmental and social dimensions consistently. We believe that a more sustainable model is based on a more inclusive economy in which all people, particularly the most vulnerable, are fully integrated and contribute to its development. We want to encourage companies in our portfolios to adapt their practices and steer their financial flows towards actors that integrate these challenges into their strategies and offer concrete solutions. At a time when investors are being encouraged to invest massively in sustainable themes, we have chosen to develop a transition approach that allows us to invest in all sectors and to combine our support to companies’ sustainable transformations of companies with our financial returns objectives. These three principles are applied to all our investment expertise according to investment strategies’ levels of sustainability integration.
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10 labelled funds
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Source: Rothschild & Co Asset Management Europe, 31/06/2022.
Rothschild & Co Asset Management Europe | ESG policy 5
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