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Thinking sustainable. Thinking long-term finance.

ESG Research

Internal & External Resources

Exclusions

Firm wide exclusions

Strategy specific exclusions

 

ABOUT THE SUSTAINABLE FINANCE DISCLOSURE REGULATION

 

 

OUR APPROACH TO SUSTAINABLE INVESTING

Our ESG tools and analysis were implemented to protect and enhance returns, and this is to be distinguished with strategies where sustainability is the primary alpha driver of investment decisions,

as defined in the new Regulation.

With our ESG process and our integration methodology, our objective is to ensure that different investment teams can make forward-looking decisions with the highest level of information available, both in terms of financial information and non-financial information.

OUR APPROACH TO ESG RISK INTEGRATION

All of our strategies involve a level of risk - a financial one as well as a non-financial one, as we believe that the value of investments is linked to both types of risks. 

Our investment team together with our ESG Committee work alongside to make sure effective processes are in place in order to anticipate, monitor, screen, process and evaluate those different potential ESG risks.

For more information, please refer to our ESG Integration Policy.

ESG Integration 

From stock-picking to firm monitoring and exit strategy

Engagement & Voting

Engaging with companies on ESG issues

Committing to 100% votes to AGMs

(undertaken by our ManCo AFFM)

OUR STORY

From a basic negative screening approach,

to a multi-sourced positive screening and a thorough ESG integration process

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THE CASE FOR ESG INTEGRATION

“Who Cares Wins”

Over the past few years, Alken witnessed and welcomed the growing trend of ESG issues being deeply intertwined with business and financial ones. Believer of the new mantra “Who Cares Wins”, Alken sees the integration of ESG factors within the business’ DNA as a catalyst for forward-looking solutions.
From the management’s investment decisions to its relationship with key stakeholders, ESG issues are now incorporated in every aspects of an institutional investor’s core business culture and are on their way to becoming part of investors’ fiduciary duties.

DIFFICULTIES IN ESG RATING

Despite the soar increase of ESG criteria to assess companies’ performance across nonfinancial factors, ALKEN likes to carefully use ESG-rating methodologies and avoid relying on a simple final score for investment decisions.
If some criteria, such as carbon emissions, can be objectively measured, a number of other ESG factors trigger a rather subjective analysis, often generating different ESG scores across the same companies.

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ALKEN’S VIEW

Alken doesn’t want to dilute what ESG means nor include ESG just as a marketing tool. If we are a believer that overall, firms with good performance on material sustainability issues will outperform firms with poor performance on those issues, we also came to recognise that the robustness of ESG’s definition can sometimes be questioned. We therefore like to implement what we believe constitutes a sustainable investment which will be capable of adding value in the medium and in the long-term.

OUR ESG TEAM

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Emmanuelle Haack 

Compliance & ESG Officer

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CLIMATE CHANGE

The role of asset owners in financing the transition

The OECD estimates that, globally, EUR 6.35 trillion a year will be required to meet the Paris Agreement goals by 2030. As public-sector resources will not be sufficient to meet this challenge, the mobilisation of institutional and private capital is fundamental.

Alken Commitments: UNPRI, TCFD, Paris Agreement

We have been a UNPRI signatory since 2013 and we support the TCFD since March 2020. Alken has a long-term investment approach which seeks to guarantee that the growth of companies is compatible with a more sustainable global economy. More precisely, we are committed to work towards the decarbonisation of the global economy, in line with the goals set by the Paris Agreement. For this, we encourage corporates to disclose their climate-related risks, we encourage further research and R&D to be made on the different climate change opportunities and we encourage further regulatory developments to clearly define the framework for asset managers. 

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SDGs: Example of our SDG contribution and integration 

CASE STUDY: Company unnamed 

SDG TARGET 11.1: By 2030, ensure universal access to affordable, reliable, and modern energy services: 

  • “Well positioned to compete in global markets with 39 electrified vehicles available by the end of 2021. Significant scale with well-established commercial positions in Europe, North America and Latin America.”

  • The company portfolio is uniquely suited to offer distinctive, sustainable mobility solutions to meet its customers’ evolving needs, as they embrace electrification, connectivity, autonomous driving, and shared ownership.”

SDG TARGET 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse.

  • « […] Stay in line with a product strategy that promotes better recovery and recyclability of its vehicles, the Group’s manufacturing plants are committed to developing a circular economy wherever they are located. The Group also wants to avoid wasting natural resources and only use the quantity of raw materials necessary.”

  • “This strategy also extends into waste management, through the achievement of zero landfill waste and by encouraging the use of recovery and recycling channels.” 

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Antony Vallee

Fixed-Income PM

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Reda Karkar

Senior Analyst

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