Thinking sustainable. Thinking long-term finance
SCORE 2020: A
Strategy & Governance
Listed Equity – Incorporation
Listed Equity – Active Ownership
Fixed-Income – Corporate Financial
Fixed-Income – Corporate Non-Financial
With our ESG internal methodology, we promote a combination of environmental and social characteristics and we make sure that companies in which investments are made follow good governance practices.
*All the strategies managed under the Alken Fund SICAV are Article 8 SFDR.
We incorporate ESG criteria throughout the entire investment process while screening 100% of the invested portfolio according to an ESG strategy and standards which have been recognised by LuxFLAG.
**Obtained for three of the client accounts managed in 2020 and 2021 again.
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.
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.
Our four pillars of ESG
Evolution of our ESG commitment
Our road to ESG
Alken becomes signatory of UN PRI
Alken contracts with ESG provider: VIGEO
Negative screening approach
Monitoring companies' ESG scorings,
Implementing a negative screening approach,
Drafting its own Responsible Investment Policy,
Engaging with invested companies on voting and corporate governance
Alken upgrades contract with VIGEO
Alken designates dedicated ESG Officer
Alken develops its internal ESG taxonomy and internal rating system
Three strategies are granted the ESG LuxFLAG Label in October.
Alken receive the score A for its annual UNPRI reporting
Alken develops its internal controversy and engagement monitoring platform
Alken adds a set of new exclusion lists based on all E, S and G considerations
Alken becomes signatory of TCFD
Alken integrates the UN Global Compact Principles
Alken integrates the SDGs objectives
Three strategies renew their ESG LuxFLAG Labelling.
Alken classifies all the strategies except one as Article 8 SFDR.
Alken publishes its first high-level Principal Adverse Impacts Report
Alken changes data provider to MSCI and upgrades its contract to include among other things all climate-related data fields
Alken reviews its internal screening and scoring process to include a thorough monitoring of its United Global Compact (UNGC) Watch and Fail Alerts
Alken explores the possibility of developing its Green Transition alignment Article 9 strategy, in line with the Taxonomy framework and objectives
*Depending on strategies
Our Approach to 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.
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.
Case study - Company unnamed
SDG contribution and integration
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.