Our commitment to transparency :
With a culture of transparency and information sharing, we strive to encourage and foster a clear, consistent, comparable dialogue on ESG issues taking into account regulatory, and market-related implications. We focus on establishing a better context and more transparency for ESG investing in line with regulatory and market-specific requirements.
The need for transparent and intelligible ESG information
In accordance with the requirements set out in the Sustainable Finance Disclosure Regulation “SFDR” (2019/2088), and in order to best meet the needs of our clients, we provide them with in-depth ESG reporting. The objective is to ensure corporate transparency on Environmental, Social and Governance aspects in order to better assess the management of these risks. The monthly reporting produced by ODDO BHF Asset Management provides our clients with a quantified assessment of the portfolio in terms of ESG criteria on the following aspects:
- The average ESG rating of the portfolio, compared to that of the benchmark index.
- The carbon footprint of the portfolio and its benchmark (measured in tons of CO2 emitted per million euros of revenue).
- The main ESG positions.
- ESG ratings in detail.
- ESG characteristics.
- Beyond the regulatory and non-regulatory imperative (Article 173 of the Law on Energy Transition for Green Growth in France / French decree 29).
Illustration of ESG characteristics for one of our funds incorporating ESG criteria.
|Feb 2021||Feb 2020||Coverage||Feb 2021||Feb 2020||Coverage|
|Fossil fuel exposure||-||-||99.5%||0.0%||0.0%||96.1%|
|Carbon solution exposure "green part"||35.5%||30.4%||99.5%||29.6%||29.0%||96.1%|
|5Y Employee growth (%)||3.2%||2.5%||90.7%||2.8%||2.5%||80.6%|
|UN Global Compact signatory||69.1%||75.8%||64.4%||73.1%||74.0%||66.8%|
|Board members' independence||71.8%||73.7%||86.7%||72.4%||72.1%||78.6%|
|Implementation of Human rights policy||99.0%||99.4%||65.0%||98.7%||98.8%||68.0%|
Climate reporting has become an essential part of an ESG integration investment strategy. Beyond the regulatory and non-regulatory imperative (Article 173 of the Law on Energy Transition for Green Growth in France, French decree 29), developing relevant indicators and quality reporting also helps to raise awareness among management teams of the financial risks of climate change and also encourages them to allocate more investment flows toward the sectors and companies that contribute positively to the transition to a low-carbon economy.
Labels: a guarantee of transparency
Today, there is a wide range of funds that incorporate ESG criteria, and it is sometimes
difficult to compare them. To offer some guidance, there are several independent
ESG labels, each of which meets strict requirements and provides objective standards,
credibility and transparency for investors looking for ESG solutions.
At ODDO BHF AM, more and more funds meet the high requirements of leading independent ESG labels. We favour 4 independent labels. The awarding of labels recognizes our funds’ ability to achieve true ESG integration in their investment process. For these funds, an external auditor conducts regular audits to ensure compliance with these objectives.
|Label Name||Created in||Country||Key features|
|Towards Sustainability (Febelfin)||2019||Belgium|