At ODDO BHF Asset Management, we are convinced that the financial community must actively contribute to this transformation, which creates tremendous opportunities. This is why we are committed to playing an active role in a positive revolution, through the sustainable management of our investments based on exclusions and ESG integration as well as through engaging with companies and other investors. Thus, our approach is based on 3 pillars.
FIRST PILLAR
EXCLUSIONS
At ODDO BHF Asset Management, we believe that responsible investing requires a clear framework to manage sustainability risks and align our investments with long-term societal and environmental goals. We have defined Exclusions as a fundamental pillar serving as a safeguard against actitivities that pose significant, ethical, environmental, or financial risks. Therefore, our Exclusion Policy reflects our active engagement on environmental and social issues by excluding sectors whose economic development model is contrary to our sustainable investing goals. Thus, we defined a common base of exclusions introducing evolving thresholds to follow a transition approach. This policy takes also into account sustainability label requirements and specific exclusions to green bonds.
Beyond risk management, exclusions are also a mean of signaling our commitment to encourage capital to flow toward companies that uphold high ESG standards and contribute positively to the transition.
Our Exclusion Policy is regularly reviewed to remain aligned with evolving regulations, investor expectations, and best practices in the industry.
SECOND PILLAR
ESG INTEGRATION WITH THE DOUBLE MATERIALITY
We have implemented an ESG integration approach based on the principle of double materiality for our investment solutions in listed assets. This approach involves assessing, on the one hand, the positive and negative impacts of companies and, on the other hand, the risks and opportunities related to sustainable development that they face.
This dual materiality approach is based on the use of ESG ratings, external ESG data, and internal and external research.
THIRD PILLAR
ACTIVE OWNERSHIP
We engage in dialogue with a variety of membership organizations and coalitions on this mission. More than 10 years ago, we started this journey by becoming a member of the FIR (Forum de l’Investissement Responsable). In 2010, we signed up to the Principles for Responsible Investment (PRI), strengthening the integration of ESG criteria. Since then, we have joined many coalitions, initiatives or working groups to harmonize sustainability practices, incite companies and/or financial institutions to improve their policies and practices, to promote and educate on sustainable investing, and to access and improve specific data, tools, and frameworks.
Active ownership can be summarized in three ways:
1. Dialogue with companies
2. Individual or collaborative engagement
3. Exercise of voting rights
By using these different actions, we seek to better understand companies’ approach to material ESG issues, strengthen our ESG analysis, and suggest areas for improvement. We also encourage companies operating in carbon-intensive sectors to implement decarbonization trajectories in line with the Paris Agreement, or those with a strong influence/dependence on natural capital to take the necessary measures aiming to reduce their impact and limit the associated risks.
The asset management industry is actively involved in the society’s transition towards a more sustainable development model. Our goal is to support the ecological transition through the selection of companies that benefit from the global economic transformation pathway.
