Responsible Investment
Our approach in practice
![[ISR pages] Picto Avoid](/uploads/logo/0001/13/1950e96486fe0ea309e146b74dbecc98f72d610c.png "[ISR pages] Picto Avoid"){kind=logo}
We avoid companies that conflict with our principles and values. Due to their activity, standards or behaviour, we exclude them from our investment universe. We choose to only invest in companies with sustainable business models that exhibit long-term growth perspectives.
![[ISR pages] Picto Analyse](/uploads/logo/0001/13/73bf16da363dd0316cf00942970087a4f91559a8.png "[ISR pages] Picto Analyse"){kind=logo}
We analyse the firm’s ESG practices alongside conventional financials. Our proprietary ESG research system helps us to assess the impact of a company’s business on the world – and the world’s impact on its business – to capture as many risks and opportunities as possible.
![[ISR pages] Picto Engage](/uploads/logo/0001/13/b971f963ade4ea65effca9688bba05cf5fb1952b.png "[ISR pages] Picto Engage"){kind=logo}
We engage with companies on ESG-related issues. This includes exercising our shareholder voting rights*, helping instil best practices, clarifying our views or holding senior management accountable when issues arise.
![[ISR pages] Picto Communicate](/uploads/logo/0001/13/4098bf56860237be81b65d2a8166741a53a9154d.png "[ISR pages] Picto Communicate"){kind=logo}
We communicate our actions and achievements with our clients. We provide full transparency related to ESG issues primarily through our website, where we publish fund documentation, reports, policies, and insights from our experts.
* We have set our target of voting participation to 100% across our entire equity fund range from 2020 onwards. Refer to our Policies and Reports page for more details.
Inside START, our proprietary ESG system
Effective management of ESG factors is inherently linked with long-term performance and risk management. Our latest ESG development is the implementation of our interactive proprietary system START (System for Tracking and Analysis of a Responsible Trajectory), systemizing the integration of ESG analysis in our Funds’ investment process.
START provides forward-looking ESG analysis that gives our investment team the insight they need to make appropriate investment decisions, to best serve our clients’ long-term interests.
ESG Indicators used in START
We analyse over 30 specific ESG indicators that we have defined as financially material for around 8000 companies, to which we add controversy and impact data. START allows our teams to add unique human insight and conduct company engagement surrounding these key indicators.
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Environmental
- Carbon Emissions
- Carbon Intensity
- Flaring of Natural Gas
- Total Energy / Revenues
- Renewable Energy / Total Energy
- Total Energy Consumption
- Total Waste / Revenues
- Waste Recycled / Total Waste
- Direct and Accidental Oil Spills
- Water Use / Revenues
- Water Recycled
- Total Fresh Water Withdrawal
- Carbon Emissions
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Social
- Employee Satisfaction
- Employee Turnover
- Incidence of Female Managers
- Employee Training Hours
- Lost Time Due to Injury
- Employee Fatalities
- CEO Salary Gap with Average Salary
- Gender Pay Gap
- Customer Satisfaction
- Employee Satisfaction
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Governance
- Audit Committee Independence
- Compensation Committee Independence
- Nomination Committee Involvement
- Board Size
- Independent Board Members
- Average Board Tenure
- Board Gender Diversity
- Highest Remuneration Package
- Long Term Objective-Linked Executive Compensation
- Sustainability Compensation Incentives
- Audit Committee Independence
The proprietary ESG system START combines and aggregates market leading data providers ESG indicators. Given the lack of standardisation and reporting of some ESG indicators by public companies, not all relevant indicators can be taken into consideration. START provides a centralised system whereby Carmignac’s proprietary analysis and insights related to each company are expressed, irrespective of the aggregated external data should it be incomplete.
