ESG Integration Policy
As a responsible investor, we consider part of our fiduciary duty to actively manage ESG risks and opportunities when investing on behalf of our clients. We integrate ESG analysis into our equities and fixed income investment process via our proprietary ESG research system START (System for Tracking and Analysis of a Responsible Trajectory), which incorporates human insight and differentiated ESG data sources.
Exclusion Policy and Coal Exit Policy
We believe our investments should be made in companies with sustainable business models and which are exhibiting long-term growth perspectives. As such, we have compiled an exclusion list with companies that do not meet Carmignac’s investment standards, due to their activity in areas such as controversial weapons, tobacco, adult entertainment and thermal coal producers (1), or because they contravene global standards on environmental protection, human rights, labour standards, and anti-corruption. (2) Furthermore, Carmignac has committed to a total exit of coal mining and coal-fired power generating companies by 2030 across OECD countries and the rest of world.
(1) Thermal coal producers with +10% revenues from thermal coal extraction are excluded from all our funds. (2) Companies contravening global norms on environmental protection, human rights, labour standards and anti-corruption, based on the ISS-Ethix Norm-Based Research.
Engagement Policy and Reports
As part of our commitment to improve corporate governance practices, we actively engage with the companies we invest in. We assess their ESG behaviour, exercise our shareholder voting rights, help instil best practices, clarify our views and hold senior management accountable when issues arise.
As part of our commitment to ensure complete clarity of our investments to our clients, we welcome the European Sustainable and Responsible Investing Transparency Code, which aims to disclose the practices of our SRI (1) Funds and Thematic ESG Funds. These are the second statements of commitment for the European and Emerging Market Funds, and the first statement for our Global Equity Funds.
(1) Socially Responsible Investment funds.
Climate Policy and Carbon Report
We have made climate awareness a formal component of our investment process, joining the efforts undertaken as part of the Paris Agreement and applying article 173 on carbon reporting and ESG implementation across our Funds. (1) As of 31/12/2020, €21.8 billion were measured and monitored in terms of carbon emissions. (2) The carbon footprint of these investments was 53% lower than their reference indicators per million EUR invested.
(1) Article 173 of the French Energy Transition Law (Law n° 2015-992 of August 17, 2015 on energy transition for green growth). (2) Carmignac funds for which carbon emissions are measured and monitored.
Sustainability related disclosures
We welcome the Sustainable Finance Disclosure Regulation (SFDR) as it offers a fair and standardised approach applicable to sustainable investments. The SFDR is a new set of European standards on sustainability‐related disclosures in the financial services sector. In the scope of asset management, it aims to help investors better understand and compare the sustainability profile of asset managers and funds by classifying them according to specific Articles, which determine the level of sustainability related information that must be disclosed.
For the SRI and Thematic ESG funds, the documents are published on the fund pages.