We believe that the economic performance and the resulting stock-market returns from companies in which we invest take extra-financial criteria into account, to better integrate long-term perspectives to invest in a 21st century, characterized by greater involvement of civil society.
The environment is a major challenge for the 21st century. We attach importance to the environmental impact of companies and to their capacity to propose solutions towards preserving and sustaining their environment and protecting against associated risks. CO2 emissions, pollution, waste and sustainable resource management, etc. are the environmental challenges facing companies today.
We also attach importance to companies' social responsibility, in terms of their internal impact and also with regard to their service providers. We believe that a company's human and social capital is an important factor and that employment, security and healthcare issues are part of its social responsibilities.
Corporate governance encompasses management issues and the role of deliberating bodies and shareholders, alongside risk management, financial communication and transparency, etc. The fight against all forms of corruption is also a core challenge of good corporate governance.
As a result, several measures have been put in place by Montpensier Finance in order to adapt its investment management processes and implement procedures and an organisational structure aiming to respect the Principles for Responsible Investment.
The 6 Principles for responsible investment:
- Incorporate ESG issues into investment analysis and decision-making processes;
- To be active investors and incorporate ESG issues into our shareholder policies and practices;
- Seek appropriate disclosure on ESG issues by the entities in which we invest;
- Promote acceptance and implementation of the Principles within the investment industry;
- Work together to enhance our effectiveness in implementing the Principles;
- Individually report on our activities and progress towards implementing the Principles.
Prohibed list and Themes taken into account:
Montpensier Finance has decided to prohibit the funds that it manages from investing in equities involved in the production of weapons as identified in the following conventions:
► Prohibited list:
- The Ottawa Antipersonnel Mine Ban Convention;
- The Oslo Cluster Munitions Convention.
Our investment criteria take into account the following main vigilance themes:
► Themes taken into account:
- Controversial weapons (antipersonnel mines, chemical and biological weapons, cluster bombs, depleted uranium weapons);
- Child labour and more generally the non-respect of human rights in working conditions;
- Deliberate deterioration of environmental performances.
In order to complement its investment procedure, Montpensier Finance has also adhered to the UN Global Compact and therefore supports the Declaration of Human rights.
ESG criteria are an integral component of the investment methods implemented by Montpensier Finance.
Montpensier Finance bases its SRI measures on the ESG research published by MSCI. Three MSCI ESG analysis components are integrated.
A note is thus integrated in the qualitative scoring.
The exercise of the voting rights is an important element of the dialogue with issuers. It encourages the dissemination of best practices in governance and professional ethics.
Montpensier Finance considers that the exercise of voting rights is an integral part of the investment management process and should be carried out in the best interest of its clients. The fund managers analyse unit/shareholder resolutions and decide how to vote. They may refer to the principles regarding corporate governance recommendations published by ISS Governance.
Montpensier Finance wants to increase the scope of its commitment to the companies in which the funds are invested. With this in mind, Montpensier Finance has decided to participate in the collective engagement actions implemented by ISS as part of its ISS Ethix program