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Quarter 3 2025: Our active stewardship illustrated

Published on
29 October 2025
Read time
1 minute(s) read

As a long-term investor, we engage in regular dialogue with the companies in which we invest to encourage them to improve their practices for taking environmental, social and governance (ESG) criteria into account. Find out how our active approach to stewardship was borne out in Q3 2025.

21
Engagements held
98%
of meetings voted in Q3 2025
34%
of meetings where Carmignac voted against management at least once*

*This data refers to the number of meetings where Carmignac took a vote position against the recommendation of the board. In practice, this refers to votes cast against management-led resolutions and, in most cases, votes cast for shareholder-led resolutions (unless the shareholder-led resolution is supported by management).

Carmignac is committed to aligning its dialogue strategy with five types of engagement: engagement on ESG ratings, thematic engagement, general information engagement, engagement on controversial behaviour, and engagement on proxy voting decisions.

Q3 2025 Engagement activity

In Q3 2025, we initiated dialogue with investee companies 21 times and across four types of engagement. No ESG rating engagement was undertaken in Q3 2025.

Our engagements cover a full spectrum of environmental, social and governance topics. Engagements may be relevant to more than one category at the same time. The proportion of our engagements which had environmental, social and governance relevance in Q3 2025 was as follows.

Q3 2025 Engagement Topics

We engaged with our investee companies in a variety of ways, including direct engagement and as part of a group.

Q3 2025 Engagement Method

In Q3 2025, Carmignac voted against the management of our investee companies at least once at 34% of meetings voted.

Meetings voted for/against management

Find out how we specifically engaged with one of our investee companies in Q3 2025.

LVMH

Sector: Consumer Discretionary
Region: France

The company is an equity and fixed income holding in our funds1.

  • To understand the company’s approach and actions taken following recent supply chain concerns relating to human rights.
  • To request greater transparency around supplier due diligence processes.

In July 2025, we held a virtual meeting with the company’s sustainability manager.

After news that a Milan court placed Loro Piana under judicial administration due to findings of labour exploitation in its supply chain, we reached out to the company to discuss the matter.

The company highlighted that, following a previous incident involving Dior, it had already taken steps to strengthen supply chain due diligence. In the case of Loro Piana, the company reported that it promptly ended its relationship with the supplier once unauthorised subcontracting was discovered2.

ESG governance at the company is primarily managed at the Maison level. While this decentralised approach offers flexibility, it also presents challenges, such as the absence of a formal Human Rights policy—though the company indicated that one is currently in development.

We recognise the company’s efforts to enhance supply chain due diligence. However, we believe there is room for improvement in the transparency of disclosures on social topics, especially when compared to industry peers. We have continuously encouraged the company to provide more comprehensive information on audit results and related controls, however, to date the company has been reluctant to do so.

Following our recent engagement, we have revised the company's START social score and overall rating from a “B” to a “C.” This adjustment reflects our assessment that there is room for operational improvement, though the company remains eligible for inclusion in our funds.

1As of 30th September 2025: Carmignac Absolute Return Europe, Carmignac Portfolio Evolution, Carmignac Patrimoine, Carmignac Multi Expertise, Carmignac Sécurité, Carmignac Portfolio Absolute Return Europe, Carmignac Portfolio Patrimoine, Carmignac Portfolio Sécurité.
2Italy: LVMH-owned Loro Piana under judicial administration for subcontracting production to suppliers allegedly exploiting workers - Business & Human Rights Resource Centre.

To find out more on our responsible investment philosophy, please visit our Sustainable Investment section:

Sustainable Investment

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CARMIGNAC GESTION Luxembourg - City Link - 7, rue de la Chapelle - L-1325 Luxembourg - Tel : (+352) 46 70 60 1 Subsidiary of Carmignac Gestion - Investment fund management company approved by the CSSF Public limited company with share capital of € 23,000,000 - RCS Luxembourg B 67 549.