BPCE - 2018 Registration document

NON-FINANCIAL PERFORMANCE REPORT A range of services to meet the challenges facing our customers

Asset manager Seeyond, a subsidiary of Natixis Investment Managers, applies ESG criteria to equity investments Seeyond implements active quantitative strategies aimed at optimizing the risk-reward ratio. The investment team relies on Mirova’s ESG research expertise to incorporate ESG criteria into its equity investment policy. One of its equity funds already incorporates ESG criteria by allocating investments based on issuers’ ESG risks and excluding the riskiest issuers. This fund totals € 653 million, or 8% of Seeyond’s total assets under management. Ecofi: assets for the future Ecofi Investissements is a Crédit Coopératif subsidiary that applies an SRI filter to its investment funds based on environmental, social and governance (ESG) criteria. The SRI investment universe includes 4,500 analyzed securities from around the world. Ecofi Investissements applies the following two-step SRI investment process: an assessment of an issuer’s ESG performance using data provided ● by the ESG ratings agency Vigeo Eiris ( e.g. greenhouse gas emissions policy, frequency and severity of workplace accidents, percentage of women in management bodies). We enhance this assessment with “Touche ECOFI” indicators, which overweight quantitative results – to compare the company’s announced policy with their actions – and criteria that reflect our values (balance of powers, responsible relations with customers and suppliers, fiscal responsibility and diversity/equal opportunities); an assessment of ESG controversies involving the issuer. This ● second filter excludes or reduces investments in companies involved in significant incidents (pollution, corruption, money laundering, violation of human rights, etc.). Ecofi Investissements also excludes issuers whose registered office is located in a tax haven and sovereign issues from tax havens from all its investments. Since June 1, 2011, Ecofi Investissements has also undertaken to exclude companies involved in the production or sale of cluster bombs and anti-personnel mines from all its investments. Its SRI policy is rounded out by a strict voting and dialog policy that was updated in 2018. As of the end of 2018, Ecofi Investissements had voted in 354 Shareholder Meetings and on 5,232 resolutions. It voted against 52% of resolutions proposed by management. Ecofi Investissements supported 92 resolutions submitted by minority shareholders. In 2018, it maintained dialog with seven companies on several topics including the energy transition, respect for human rights in the supply chain, corruption and product safety. Ecofi Investissements participated in twelve collective dialog initiatives coordinated by international responsible financing networks such as the Principles for Responsible Investment (PRI), the Carbon Disclosure Project (CDP) and Shareholders for Change (SFC) in 2018. It also took part in five investor dialog initiatives with institutions.

Asset manager DNCA, a subsidiary of Natixis Investment Managers, is switching to SRI After signing the UNPRI in 2017, DNCA refocused on SRI in 2018, intending to develop its product range and expertise in this key investment segment. It started by converting three existing funds, representing nearly € 500 million in assets under management, to SRI funds. The responsible investment funds in the DNCA Finance range aim to select responsible, sustainable investments. This involves incorporating ESG analysis when building the investment universe and in the stock picking process. DNCA believes that ESG analysis complements traditional financial analysis. By looking at financial statements differently, with a long-term approach, ESG analysis provides a framework for anticipating external risks (new regulations, disruptive technologies, etc.) and internal risks alike (industrial accidents, strikes, etc.), and for identifying long-term growth drivers. The goal is to enhance our fundamental knowledge of companies so we can choose the best stocks for our portfolios. All DNCA Finance analysts and fund managers have access to ESG research and in-house software tool ABA. Important information is systematically circulated by e-mail and at Investment Committee Meetings ( e.g. major controversies, major changes in governance, industrial accidents, etc.). For DNCA, SRI is an investment approach that does more than simply incorporate ESG criteria when analyzing companies. DNCA places great importance on building proprietary models, with a constant aim of delivering tangible added value to the investment selection process. For example, DNCA Finance’s ESG analysis model assigns an ESG rating to each potential investment, and each of the model’s inputs are fully controlled by DNCA. Most of the data used for our ratings derives from information provided by companies. Dialog with Management and on-site visits give us a fuller picture of the company’s business and operations, making them invaluable sources of added value. The model comprises four independent, complementary analyses: Corporate Social Responsibility; ● sustainable transition; ● The aim is to produce a detailed analysis offering real added value alongside traditional financial analysis. This analysis is performed internally by DNCA's Finance teams and mostly draws on data provided by companies. DNCA’s ambition is to offer a distinctive, innovative approach that adapts as new considerations arise. To this end, the responsible investor policy draws a distinction between Corporate Social Responsibility (CSR) and the sustainable economic transition. This policy derives from an in-depth analysis of economic and social trends as well as its renowned expertise in SRI. controversies; ● engagement. ●



Registration document 2018

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