Our ESG approach
Vivienne Investissement is a management company that is concerned about the impact of its activity on society and the environment. In line with our values, we are a signatory of the United Nations PRI.
What is ESG?
Environment
Refers to issues related to the quality and proper functioning of the environment and natural ecosystems, such as: loss of biodiversity, greenhouse gas emissions (GHG), climate change, renewable energy, energy efficiency, air and water quality, depletion or pollution of water or natural resources, waste management, depletion of the ozone layer, new land uses, ocean acidification.
Social
Refers to issues related to the well-being and interests of individuals and populations, such as: the fight against inequality and poverty, the fight against unemployment, access to education, health and safety of employees, the fight against malnutrition, access to water, the fight against infectious diseases, the promotion of gender equality.
Governance
Refers to issues related to freedom of expression, child labor, the fight against corruption and organized crime, economic stability, the promotion of a strong judicial system, the promotion of peace in the world, commitments against discrimination, and respect for international conventions.
Our ESG approach in practice
In practice, we integrate extra-financial analysis into the investment process in negotiable debt securities or money market instruments issued by the most advanced OECD countries in terms of ESG criteria.
An external extra-financial data provider provides Vivienne Investissement with a basis for analysis of the investment universe in terms of environmental, social and governance issues. The management company remains the sole judge of the quality of the extra-financial ESG criteria. The model provided by our service provider uses 172 indicators from numerous governmental (Eurostat, etc.), supranational (OECD, World Bank, WHO, etc.) and NGO (Amnesty International, Transparency International, etc.) sources. The purpose of the extra-financial analysis model for governments is therefore to offer a synthetic view (in the form of a score) of the adherence of these issuers to universal values.
The evaluation of other public entities (MSBs, etc.) is based on their attachment to one or more sovereigns. Each entity is rated on 3 pillars: Environment, Social and Governance, themselves divided into categories. An overall weighted ESG score is then calculated.The extra-financial score (between 0 and 100) reflects an overall assessment of the ESG rating for the country being evaluated and the resources used. A high score corresponds to a more virtuous country in terms of ESG. Issuers are classified in three categories according to their rating level: Low (0 to 33), Moderate (34 to 67), High (68 to 100).From the eligible investment universe, ESG scores are used in the investment process to select issuers that combine an attractive ESG rating with good credit risk management prospects.ESG analysis is above 90% of eligible assets Debt securities and debts of governments or supranational entities that have not been subject to an ESG assessment may represent a maximum of 10% of the net assets. ESG criteria are not taken into account when using derivatives as a management technique.
