A RESPONSIBLE MANAGEMENT

Seeyond's standard approach to the Responsible Investment involves the implementation of exclusionary policies, ESG integration approaches on specific portfolios and active ownership.

Seeyond applies the following regulatory exclusions to all its portfolios:

• Blacklisted states: Seeyond does not invest in countries subject to US or EU embargo, mentioned on the EU list of non-cooperative jurisdictions for tax purposes or which have been identified by the Financial Action Task Force as having strategic AML/CFT deficiencies.
• Anti-personnel mines and cluster bombs: exclusion of any companies involved in the production, use, storage, sale and transfer of anti-personnel mines and cluster bombs in accordance with the Ottawa convention and Oslo Treaty, to both of which France is a signatory.

In addition, Seeyond refuses to support sectors or issuers who fail to respect fundamental principles of corporate social responsibility. This is central to the credibility of its responsible approach and fiduciary duty to its clients. Seeyond applies the following exclusions to equities:

• Controversial weapons:
  • Biological and chemical weapons*: exclusion of all issuers involved in the in the production, use, storage, sale and transfer of biological and chemical weapons
  • Depleted uranium ammunition*:  exclusion of all issuers involved in the in the production, use, storage, sale and transfer of depleted uranium ammunition.

• Tobacco*: exclusion of tobacco producers

• Coal*: exclusion of issuers who earn more than 25% of revenue from either coal mining or coal-fired power generation.

• Palm oil* : exclusion of issuers who earn more than 25% of revenue from palm oil production and distribution and that are also involved in serious controversies related to land used plan and biodiversity.

• Non-conventional fossil fuel:
  • Shale gas or oil*: exclusion of issuers involved in the exploration or production of shale energy (gas and/or oil) and in the use of hydraulic fracturing or horizontal drilling as a method of extraction by more than 10% of their revenue
  • Oil sands*: exclusion of issuers involved in oil sand extraction by more than 10% of their total average oil production
  • Arctic region*: exclusion of issuers involved in oil and gas exploration in offshore Arctic regions by more than 10% of their revenue

• Worst offenders*:
  • exclusion of all issuers who fail to respect the principles of the UN Global Compact principles on Human Rights, Labour, Environment and Anti-Corruption.
  • exclusion of issuers that undergo the most severe controversies

  • Exclusion of issuers that undergo severe controversies related to land used and biodiversity

* excluding Index-linked portfolios which are constrained by their benchmark indices and client dedicated equity portfolios to which the client’s policy might apply

On the other asset classes, in view of their specific features, the incorporation of ESG criteria throughout Seeyond's active quantitative investment processes is currently being structured and work is under way on how they might be incorporated consistently to Seeyond’s quantitative investment approaches.

Seeyond has defined an Active Ownership policy that is consistent with its quantitative investment approaches on the one hand and its commitments as a signatory to the UN PRI on the other.
This policy comprises a voting policy and collaborative engagement reflecting the company's ambition to help promote a better incorporation of ESG issues in companies’ practices.

Voting policy:

Seeyond exercises its voting rights at general meetings over a broad universe and by taking environmental, social and governance issues into consideration.
Seeyond's approach consists in exercising its voting right in order to favor better incorporation of ESG issues in companies' strategic thinking. To this end, Seeyond has chosen Institutional Shareholder Services (ISS), the world's leading provider of corporate governance and responsible investment (RI) solutions, and the recommendations of its Sustainability Voting policy. This policy best meets the standards set by Seeyond’s IR and the company’s commitments as a PRI Signatory.  

Collaborative Engagement:

In order to reinforce Principle 5 of the UN PRI, Seeyond has chosen to complement its voting policy with a collaborative engagement approach. Through ISS' Collaborative Engagement service, Seeyond participates in initiatives selected based on the main international normative standards (OECD, ILO, UN Global Compact guidelines, etc.)