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
* 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.