Energy transition: La Financière de l’Echiquier’s carbon footprint measurement extended to its entire range
Paris, 28 March 2017
The French Energy Transition for Green Growth Act (Article 173-VI) introduced new disclosure obligations for certain institutional investors and asset management companies on the integration of environmental, social and governance criteria (ESG) and climate risks in investment activities. Asset management companies with more than €500 million in net assets at 31 December 2016 are required to publish this information.
Whereas only four funds of La Financière de l’Echiquier (LFDE) are subject to this law (Echiquier Agressor, Echiquier ARTY, Echiquier Major and Echiquier Patrimoine), the company has chosen to extend this legal obligation to virtually all its European equity funds or 80% of assets under management.
“The entry into effect of article 173-VI of this act is an opportunity to go even farther and again strengthen our SRI approach. In this first year, the management team will be able to continue to familiarize itself with climate risk management”, commented Sonia Fasolo, head of the SRI analysis team and manager of the Echiquier ISR fund. “The initial results are encouraging: our growth funds have a carbon footprint that is much lower than their benchmark. By way of example, Echiquier Major, one of our SRI certified funds is, for every million euros invested, six times less carbonated than its benchmark, MSCI Europe.”
“La Financière de l’Echiquier first integrated ESG analysis into its historic stock picking process in 2007. Since 2013, we have been formalizing progress areas for extra-financial issues, including environmental, as part of the dedicated interviews organized with companies with whom we meet. Our decision to go even farther in the area of ESG reporting seeks to reassert the engagement of our teams regarding this important dimension of our management”, stated Didier Le Menestrel, the company’s Chairman and CEO.
To measure climate risks – carbon footprint, contribution to respecting the international objective to limit global warming to 2°C –, LFDE has chosen the method and sustainability data of Trucost, an independent research firm specialized in environmental data and analysis.
The carbon footprint of LFDE’s funds will be available on our website no later than 30 April 2017.
To learn more about LFDE’s ESG methodology, click here.