Responsible Investment

ESG Integration Policy (1)

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 (2)

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 (4)

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.

We are reviewing our Engagement Policy to align it with the Shareholder Rights Directive (SRD II) and its effective transposition in the relevant countries that occurred along 2019. Our Voting Policy will be incorporated in our Engagement Policy, as a pillar of our Engagement Framework, so will the voting reports for the 2020 proxy voting season. We will also address factors such as how we monitor the strategy, financial and non-financial performance, risk and capital structure of our investee companies (where applicable) and how we co-operate with other stakeholders and co-ordinate actions. In accordance with our Conflicts of Interest Management Framework, we will also address how we manage actual and potential conflicts of interest arising from this updated Engagement Framework.

Transparency Codes (3)

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 (1)

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 31/12/2019, €12.6 billion or 38% of our assets under management were measured and monitored in terms of carbon emissions. (2) The carbon footprint of these investments was 63% 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.

Read about our responsible investment approach