Our CSR approach retrospective 2023
ENVIRONNEMENT
SOCIAL
GOVERNANCE
Ludivine de Quincerot Head of Sustainable Investment Team, Diversified Fund Manager
As investors, we are convinced that we have a role to play in directing financial flows towards companies that integrate sustainability issues into their strategies. As a company, it seems consistent to us to be as demanding with ourselves as we are with the companies in which we invest. The aim of this first report is to present the practices, ambitions, and initiatives specific to Rothschild & Co Asset Management in terms of CSR, in addition to those developed by the Group and published in Rothschild & Co’s sustainability report. This project, the result of collective work, has been led by our employees: we are committed to showing that behind the acronyms and abbreviations lie concrete actions. It also responds to the expectations of our clients as part of their evaluation process when selecting asset management firms during tenders. Last, it contributes to enhancing the attractiveness of asset management careers for our employees. We consider this project as an exercise in transparency towards our stakeholders. It is a snapshot of the practices implemented within Rothschild & Co Asset Management, which we will continue to enrich over the years. Starting in 2025, we will launch our CSR committee, composed of volunteer employees from different business areas, to define our roadmap for the years to come.
“ We are committed to demonstrating that behind the acronyms
and abbreviations there are concrete actions.”
2
Rothschild & Co Asset Management - 2024 CSR Report
Contents
1. Environnement
4
1.1. Limiter notre impact environnemental
5
1.2. Agir sur notre bilan carbone opérationnel
6
1.3. Adopter une gestion durable des ressources
7
1.4. Favoriser les achats responsables
7
2. Social
8 9
2.1. Faire de l’équité un moteur de succès
10 11 12 13 14 15 15
2.2. Développer un environnement inclusif
2.3. Veiller au bien être de nos collaborateurs
2.4. Accompagner la carrière de nos collaborateurs
3. Gouvernance
3.1. Criminalité financière
3.2. Confidentialité et protection des données
3.3. Organisation
3
Rothschild & Co Asset Management - 2024 CSR Report
SOCIAL
GOVERNANCE
ENVIRONMENT
Rothschild & Co Asset Management - 2024 CSR Report E 1.
Environment
5 6 7 7
1.1. Reduce Our Environnemental Impact
1.2. Act on our Operational Carbon Footprint Report
1.3. Responsible management and use of resources
1.4 Ethical and Sustainable Procurement Practices
4
SOCIAL
GOVERNANCE
ENVIRONMENT
1.1 Reduce our environmental impact Across all its divisions, Rothschild & Co is committed to reducing the environmental impact of its operations by lowering its carbon footprint and promoting the sustainable use of resources. Several key measures have been identified to achieve this.
Reduce
Replace
- Réduce
- Monitoring
Reduce our greenhouse gas emissions and impact on natural resources
Meet environmental requirements and standards, particularly in our communication materials Measure our environmental performance and raise awareness among our teams
- Replace
Prioritize a sustainable resources consumption
Monitoring
Compensate
- Compensate Offsetting our greenhouse gas emissions by supporting high-impact projects
Rothschild & Co Group’s operational environmental impact objectives are consulted in Rothschild & Co’s Sustainability Report.
5
Rothschild & Co Asset Management - 2024 CSR Report
SOCIAL
GOVERNANCE
ENVIRONMENT
1.2 Act on our opera- tional carbon report In order to achieve the objectives set by our Group regarding the reduction of our carbon footprint, we proceed in three stages.
We also adopt a sustainable travel policy and promote rail travels and the use of digital collaborative tools such as video conferencing. Compensate Rothschild & Co has been offsetting its operational greenhouse gas emissions since 2019 through the purchase of carbon credits, centralized at the Group level and financed by the Internal Carbon Price . The amount generated by this compensation scheme is allocated to finance three action levers: sustainable aviation fuel certificates (SAF), natural and technological storage and capture solutions. Through the centralization of carbon credit purchases, Rothschild & Co has set a target to compensate 100% of its emissions through carbon sequestration solutions by 2030. In 2023, the purchase of sustainable aviation fuel certificates by our Group to offset emissions from business air travel resulted in a reduction of 1,012 tonnes of CO2eq (4) .
18,586.5
business travel impact on GHG emissions (tCO2eq)
14,067.7
Scope 3 (FE BEIS 2022) Scope 3 (FE BEIS 2023)
Source: Rothschild & Co, 31/12/2023
2023
Evaluate Each year, Rothschild & Co estimates its greenhouse gas (GHG) emissions globally and per employee.
Business travels represent 68% (2) of carbon emissions of Scope 3 and therefore take significant portion of emissions per employee. Rothschild & Co Asset Management contribution on GHG should be moderated, our operations require less business trips compared to other divisions of our Group that work more on cross border transactions. We are committed to shortly conduct and communicate GHG carbon footprint per FTE (3) exclusively for our division. Reduce Rothschild & Co is targeting to reduce operational GHG emis- sions by -30% between 2018 and 2030 following the Paris Agreement. This commitment implies on changing how we operate to reduce Scope 1 and Scope 2 emissions, at a Group level, by more than 80% , and our Scope 3 operational emissions by 24% per FTE by 2030. To encourage these efforts to reduce operational GHG emissions, Rothschild & Co has set an Internal Carbon Price (ICP) charged annually to all entities (set at €72 per tonne of CO2 for 2023 (2) ).
24,961.3
Emissions Total GHG emissions (tCO2eq (1) )
20,442.5
2023
Scope 1
Scope 2 Scope 3 (FE BEIS 2022)
Scope 3 (FE BEIS 2023)
Source: Rothschild & Co, 31/12/2023
Scope 1 & 2 aggregate direct GHG emissions at a Group level, as well as indirect emissions from energy consumed. Our offices’ energy consumption is regularly measured to determine and implement energy saving actions and procure low energy equipment. At the end of 2023, 91% of Rothschild & Co’s total office electricity came from renewable sources, with the goal to reach by the end of 2025 (2) .
Emissions by Rothschild & Co employees
4,4 tCO 2 eq
(2)
(1) The equivalent tonne of CO2 is a reference unit for the emissions of the various GHGs. (2) Source: Rothschild & Co, 29/12/2023. (3) Full time equivalent. Measure proportional to the number of hours worked over a year by a full time employee. Please refer to the methodological notes on the calculation of greenhouse gas emissions reductions related to SAF purchases in Appendix Section 4.9 of the Rothschild & Co Sustainability Report. (4) 2023 ICP based on the total volume of operational GHG emissions calculated using 2022 GHG emission factors from the UK Department for Enterprise, Energy and Industrial Strategy.
6
Rothschild & Co Asset Management - Rapport RSE - 2024
ENVIRONNEMENT
SOCIAL
GOUVERNANCE
Sponsor of the Polar POD Expedition Since 2021, we have been a member of the Support Committee and signed a sponsorship agreement in support of the Polar POD expedition. This scientific project, led by Jean-Louis Etienne, aims to explore the largely unknown Southern Ocean, one of the planet’s main oceanic carbon sinks. To carry out measurements, recordings, and sample collections throughout the year, Jean-Louis Etienne and his team have designed a revolutionary ship, a true station drifting around Antarctica. As part of this partnership, we contribute a portion of the management fees from two of our funds focused on climate transition to the Océan Polaire association to help fund the Polar POD expedition
1.3 Adopting sustainable resource management
1.4 Promote responsible purchasing management
Following our Group policy, we are committed to the sustainable use of resources.
Each entity of our Group continues its efforts to reduce purchases of products from non-sustainable sources . The Group’s Responsible Materials Usage Guide outlines the obligations of our offices regarding the sourcing and use of sustainable materials and other supplies. Rothschild & Co’s efforts to make its supply chain more sustainable and avoid any indirect complicity in negative environmental practices are reflected in the Group’s Third-Party Relationship Management Policy and the Supplier Code of Conduct .
Paper Our Group has set a target, to reduce paper use per FTE by 25% by 2025, followed by the usage of sustainable sourced printing paper only. We have already reached 68% (1) of reduction, above our target. Waste management Our Group aims to achieve 80% recycling rates by 2025 and zero waste policy by 2030. For each office, we have assigned a ‘recycling officer’ , and sorting and recycling waste bins are made available to employees. To prevent the usage of disposable cups, all employees will receive “Wel- come Pack” upon arrival in the company.
To find out more:
1% for the planet We are members of the 1% for the Planet France collective, a global movement supported by companies that have committed to donating 1% of their revenue to environmental preservation organizations. Since 2022, 1% of the Net Banking Income from our ESG-focused fund range has been donated to projects identified by 1% for the Planet.
7
Rothschild & Co Asset Management - 2024 CSR Report
(1) Source : Rothschild & Co Asset Management, 29/12/2023.
ENVIRONNEMENT
SOCIAL
GOUVERNANCE
S
Social
9
2.1. Turning equity to a success factor
2.
10 11 12
2.2. Developing an inclusive environment
2.3. Ensure the well-being of our employees
2.4. Support our talents on their career
8
Rothschild & Co Asset Management - 2024 CSR Report
ENVIRONNEMENT
SOCIAL
GOUVERNANCE
2.1 Making equity a driver of success We pay particular attention to the principles of equity and gender equality through the implementation of dedicated initiatives. To measure the results obtained, we monitor the evolution of gender classifications with the aim of ensuring a fair progression between women and men at all company levels.
Balanced representativeness within the investment divisions As part of the French Rixain Law, which aims to accelerate economic and professional equality, we had set a target of 30% women by the end of 2022 among the teams, bodies, and leaders responsible for making investment decisions within our entity. A new target of 40% by 2026 has been established, with the hope of achieving balanced representation thereafter. Support systems for female employees To support female employees who wish to advance in their careers, coaching workshops and a mentorship program are offered starting at certain levels of responsibility through the “Shine” initiative . These programs, launched at the Rothschild & Co level, help share best practices, expand networks, and foster cross-functional collaboration between different business areas and offices.
Professional economic equality
We measure the gender pay gap within Rothschild & Co through the professional equality index , calculated accord- ing to the scale provided by the French Ministry of Labor, Health, and Solidarity. In 2023, our Group scored 82/100 . We achieved the maximum score on three indicators: individual salary increases gap, promotion gap, and the percentage of women receiving salary increases after returning from maternity leave. However, we need to make progress on two indicators: the pay gap and the number of underrepresented gender employees among the top ten highest salaries. To this end, objectives have been set in a collective agreement for gender equality signed in August 2022. Additionally, we strive to always present both female and male candidates at the start of the process and at least one female candidate during the final selection process, when possible.
9
Rothschild & Co Asset Management - 2024 CSR Report
ENVIRONNEMENT
SOCIAL
GOUVERNANCE
2.2 Developing an inclusive environment
Alongside Café Joyeux since 2021 We have been partners with Café Joyeux , the first network of socially responsible cafés-restaurants committed to the inclusion of people with mental or cognitive disabilities, since 2021. In fact, in 2021, when we evolved one of our areas of expertise, historically focused on social dimensions and human values, to specifically address the theme of inclusion and disability, this change was accompanied by a partnership with Café Joyeux. As part of this partnership, we donate a portion of the management fees from this strategy, through sharing shares, to the Emeraude Solidaire Endowment Fund, a non-profit organization and the sole shareholder of the Café Joyeux Group. In addition to financial support, we help raise awareness of the initiative and Café Joyeux products among our clients and teams through communications and specific events. Our employees are also encouraged to place coffee orders with the company, benefiting from preferential rates.
Facilitating the professional integration of people with disabilities We have structured our approach to the integration of people with disabilities around four key areas:
Equal opportunities We are members of the AFG Diversity Club , whose purpose is to promote diversity and inclusion in the asset management sector, raise awareness, share best practices, support initiatives, and measure progress in diversity and inclusion. As part of this, we contribute to the development of the AFG’s reference documentation on all these topics. We are also sponsors of Demos , an association that works to promote cultural democratization through orchestral music practice. It offers classical music education to children aged 7 to 12 who do not have easy access to this practice due to economic, social, or geographical reasons. Age diversity We have signed an agreement on Management of jobs and professional career paths with a reaffirmation of support for employees at the end of their careers and the organization of knowledge transfer . To better prepare for retirement, certain provisions are in place within our Group: retirement forecast assessments, retirement information meetings with one of the basic or supplementary pension schemes, meetings with HR to discuss future retirement plans, and more.
- Communication with our employees on this topic
- Raising awareness about the benefits of declaring one’s status as a disabled worker
- Supporting our employees through necessary workplace adjustments
- Recruiting people with disabilities In 2023, we appointed a disability reference person within the Human Resources department and created a dedicated section on disability on our Intranet. We also participated in three forums in partnership with 100% Handinamique organization that we also sup- port via the Apprenticeship Tax, and held a conference on Taking a New Look at Disability in Business . Finally, for service provision, our employees have been encouraged to work with adapted companies or establishments providing work assistance services , in order to promote the integration of people with disabilities into the professional world.
To find out more:
10
Rothschild & Co Asset Management - Rapport RSE - 2024
ENVIRONNEMENT
SOCIAL
GOUVERNANCE
Provide an environment conducive to well-being Our entity aims to foster team cohesion and provide an environment conducive to the well-being of its employees. At our Paris office, the main location of our entity, our employees have access to various facilities and services (cafeteria, gym, concierge service, company restaurant, fruit baskets, etc.). Employees working at our other locations also benefit from the services offered by Rothschild & Co at local level. Global people survey Since 2022, an anonymous survey has been conducted annually among all employees of our Group, with a breakdown by entity. The objectives are multiple:
Initiative ‘Impulsion’ As a result of the annual survey among our employees, working groups were launched in 2023 to allow them to contribute to discussions on topics such as digital innovation, the culture of feedback, mentoring, knowledge sharing, team cohesion, and CSR. Around sixty employees became involved in these various projects, with the goal of achieving tangible outcomes by 2024. This report is the result of reflections carried out through the working group dedicated to CSR and will be followed by the establishment of a CSR committee in early 2025. Investing through R&Co4Generations Foundation R&Co4Generations is the philanthropic foundation of Rothschild & Co . It supports associations and non-profit organizations fighting against the effects of social and economic inequalities and climate change. In 2023, 36 of our employees contributed to at least one initiative led by the foundation through actions benefiting younger generations, alongside associations such as Tada, Entreprendre pour Apprendre, Moi dans 10 ans, and Demos.
2.3 Ensuring the well-being of our employees
We strive to promote a healthy and balanced environment that allows for a good work- life balance. We place particular importance on the well-being of our employees and encourage them to actively contribute to initiatives on key issues related to the life of our company. Integration of Our Employees Individual support for new employees is provided by our HR department from the moment they arrive and at the end of their probationary period. They are also invited to participate in an integration day with representatives from each of Rothschild & Co’s entities, which ends with a social gathering. A mentorship program has also been implemented, allowing voluntary employees from different departments to guide new hires during the first few months after they join the company. Workplace Flexibility An agreement on remote work was signed in June 2021, allowing eligible employees to work up to two days per week remotely, with the possibility of occasional remote work subject to manager approval. Additionally, appropriate equipment is provided to employees to ensure quality remote working conditions .
- To ensure the balance between the personal and professional lives of our employees is respected
- Gather their opinions on the concept of diversity in its various forms within the Group
- Measure their sense of recognition and the value placed on their work and opinions
- Assess their alignment with the values of our Group
- Identify areas for improvement in these different aspects
- Provide everyone with the opportunity to submit ideas and best practices
- Encourage the implementation of actions in support of all the aforementioned dimensions
11
Rothschild & Co Asset Management - Rapport RSE - 2024
ENVIRONNEMENT
SOCIAL
GOUVERNANCE
2.4 Supporting the Careers of Our Employees
We aim to promote an environment in which each employee feels valued and can envision the development of their career. Listening, support, and training are the pillars of this approach. Therefore, we provide them with a catalog featuring nearly 400 training opportunities, updated annually, to support them in their development journey.
Professional training and soft skills In 2023, 95% of our workforce participated in at least one training session, and 28% completed a certification program (1) . The topics offered are diverse and expanded each year. Training needs can be expressed by employees or requested by managers, typically during annual evaluations or objective reviews, depending on individual aspirations, but also in response to career developments or structural and regulatory changes within our industry. For example, in 2023, 28% of our employees undertook training on Environmental, Social, and Governance (ESG) topics, and 33% completed at least one training on diversity and inclusion (1) .
Career development
The ‘RAM University’ All of our employees have the opportunity to enroll in the “RAM Universities”, an internal initiative designed to allow individuals to present their expertise, career path, or projects. In 2023, 48% of our workforce participated in at least one edition (1) . These sharing sessions contribute to the dissemination of knowledge and foster stronger relationships between departments. Health and Safety at work All of our employees have the opportunity to enroll in training dedicated to health and safety at work , such as First Aid Rescuer complemented by the Maintenance and Skills Update training, First Aid training, fire extinguisher handling, detection and management of psychosocial risks, etc.
Career progression is assessed as part of the career development plans, at least once a year . Human Resources and managers work together with employees to identify their growth needs, defining the necessary steps, skills to be acquired, and actions to be taken . Some career advancements are supported by coaching sessions or even networking opportunities with peers to guide the employee and foster the sharing of best practices.
19 %
100 %
of our employees obtained at least one ESG certificate training at the end of 2023 (1)
of our employees present as of 12/31/2023, participated in the Climate Fresk (1) .
12
Rothschild & Co Asset Management - Rapport RSE - 2024
(1) Source : Rothschild & Co Asset Management, 29/12/2023.
ENVIRONNEMENT
SOCIAL
GOUVERNANCE
Rothschild & Co Asset Management - 2024 CSR Report G 3.
Governance
14 15 15
3.1. Financial crimes
3.2. Data protection and confidentiality
3.3. Organisation
13
ENVIRONNEMENT
SOCIAL
GOUVERNANCE
3.1 Financial crime Our Group implements compliance rules governing financial crime for all its entities, as detailed in its Financial crime prevention statement. Furthermore, all of our employees receive regularly updated training to raise awareness of these issues and maintain their vigilance.
UN Global Compact (UNGC)
Our Group is a signatory of the United Nations Global Compact . In this regard, we are committed to upholding its fundamental principles in the conduct of our operations.
Anti-money laundering and counter-terrorist financing
Sanctions Under our Group’s Sanctions policy, we comply with the sanction regimes applicable in the countries where we operate. In addition to local checks, we verify the identity of clients, third parties, and transactions against the sanction lists issued by the European Union or any member state, the United Kingdom, the United Nations Security Council, and the United States. Fighting corruption Our Group maintains a zero-tolerance policy towards any form of corruption and is committed to complying with all anti-corruption laws and regulations applicable to our activities. All these rules and measures are outlined in Rothschild & Co’s Financial crime policy statement.
The policies in place within our Group regarding anti-money laundering (AML) and counter-terrorism financing (CTF) aim to ensure compliance with the requirements of the Prudential Supervision and Resolution Authority (ACPR), unless these requirements conflict with local legal or regulatory obligations. In such cases, the principles set at the Group level are supplemented by policies and procedures aligned with local regulatory requirements. Tax evasion We are fully aware of our role in the fight against tax fraud , and considerations related to this matter are included in our financial crime compliance framework, as outlined in our Group’s Financial crime policy statement.
All the measures against financial criminality can be consulted in the Rothschild & Co Financial Crime Policy Statement .
14
Rothschild & Co Asset Management - 2024 CSR Report
ENVIRONNEMENT
SOCIAL
GOUVERNANCE
Operational security management The IT Security and Information Security Risk teams at Rothschild & Co continuously monitor and ensure the proper implementation of technical security measures . These measures are applied to meet the requirements of the Information Security Program. 3.3 Organisation Various measures are in place to protect and support our employees, particularly in exceptional circumstances. Training sessions and reference documents are made available to raise awareness and guide them in the event they face such situations. Emergency and Business Continuity Plan Our Group has defined a set of measures aimed at ensuring the continuity of services or other essential or important operational tasks according to various crisis scenarios. These measures are outlined in an Emergency and Business Continuity Plan , which is made available to employees, who are also made aware of and trained on the subject.
Report concerns or irregularities (raising an alert) Our employees are required to report any observed misconduct to the appropriate authorities (supervisor, compliance department, etc.). They can also make an anonymous report through a dedicated hotline or contact a judicial or regulatory authority directly. Our Group ensures the protection of any employee who makes a report in good faith . A Whistleblowing Policy is available to employees, providing information on the protection mechanisms and local specifics.
3.2 Confidentiality and data protection Respect for confidentiality is an essential aspect of our relationships with clients. Our employees are required to exercise the utmost care when exposed to confidential information. These requirements are explicitly defined and communicated in Rothschild & Co’s Code of conduct. Data Protection We are required to inform our clients about the processing of their personal data . Our Group’s Data Protection Policy defines the fundamental principles of personal data protection, processed by or on behalf of Rothschild & Co. Information Security The security of the information held and stored about our clients, employees, activities, and business partners is a key aspect of our operations. Our Group has implemented an Information Security Program aimed at managing the associated risks, based on its Information Security Policy.
All measurements related to confidentiality and data protection can be found in the Rothschild & Co Code of conduct .
15
Rothschild & Co Asset Management - Rapport RSE - 2024
About Rothschild & Co Asset Management As the specialised asset management division of the Rothschild & Co group, we offer personalised asset management services to a broad client base of institutional investors, financial intermediaries and distributors. Our development is focused on a range of open-ended funds, marketed under four strong brands: Conviction, Valor, Thematic and 4Change, and leveraging our long-term expertise in active management with conviction as well as in delegated management. Based in Paris and established in 9 European countries, we manage more than 35 billion euros and employ nearly 170 people. More information at: www.am.eu.rothschildandco.com
Join us on LinkedIn
For further information am.eu.rothschildandco.com
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16Made with FlippingBook Learn more on our blog