Long term investment to act with our shareholders

All economic sectors are or will be impacted by climate change, digital transition and their social consequences. As shareholders, we have the power to encourage companies to accelerate their transformation, to become more ethical and sustainable. Only those who change their business models will still be around tomorrow and create value.

Shareholder engagement, a leverage for value creation

Voting at general meetings is essential but not sufficient. We believe that demanding and regular shareholder engagement is a powerful leverage for action and value creation in the long term. Our approach is constructive, based on direct dialogue with the leaders and chairmen of companies’ boards of directors. This dialogue takes many forms. It is a gradual build-up, from direct dialogue to public action, including the filing of resolutions. As an active – and non-activist – shareholder, we are committed to respect each stage.

Governance as a central means

Weak governance destroys value. The governance of listed companies is at the heart of financial and non-financial challenges. It is a means, environmental and social challenges are objectives.  For Denis Branche, Deputy CEO, “there is no E, no S, without a strong G”. We believe that it is from the perspective of strategic governance that shareholders can bring about sustainable change in the environmental and social practices of companies.

Socially Responsible Investment funds management

We are an emanation of the first ethical fund management company. We manage a range of funds invested in European equity markets on behalf of private and institutional investors. We have developed quantitative and qualitative management methodologies based on shareholder engagement and impact. They focus on companies that have good Environmental, Social and Governance (ESG) practices and that improve them by engaging in dialogue with shareholders. The SRI engagement strategy has been recognised since 2020 by the award of the SRI label for our main CAC40 equity fund.

A community of committed investors

We engage with our stakeholders in several ways.

• Prior to our shareholder engagement actions, we involve our technical committee and propose to the Board of Directors of our engagement fund the initiatives that could be implemented with portfolio companies.
• Once we have taken action, we engage in direct, systematic, demanding and constructive dialogue with the leaders of major companies before any public action is taken. We act in an ESG Improvement perspective. Our independence allows us to bring together other institutional investors and/or management companies for each resolution filing.

More than 50 resolutions filed since 2004

Respect for minority shareholders’ rights, well balanced governance, environment, social issues, corruption, merger of equals, …. These are all key issues on which we have been involved, with more than 50 public initiatives and resolutions filed at AGMs.