SGSS is supporting Financière Arbevel for the production of ESG reporting
A fast-growing independent asset managerment company, Financière Arbevel has chosen Societe Generale Securities Services (SGSS) to provide it with an independent overview of its financial investments from an Environmental, Social and Governance (ESG) perspective.
Assessing and incorporating ESG criteria within investment portfolios is becoming a necessity for any responsible investor, notably driven by a number of French and European regulations1. However, implementing such criteria is both complicated and costly, especially as there are often a substantial number of companies to monitor in a portfolio. Few asset management players thus have the human, technological and financial means to acquire such analysis tools.
Driven by its desire to combine financial, social and environmental performance, Financière Arbevel has decided to benefit from SGSS’ Evergreen solution, which notably consists in the production of specialised “ESG” reporting. SGSS’ ESG reports are based on MSCI 2 methodology for assessing investments’ E, S, G factors and carbon footprint to understand portfolios’ performances from a non-financial perspective. MSCI methodology places a different weight on E, S and G criteria depending on the sector and enables asset managers to have a non-financial performance score, both absolute and relative, regarding 3 focuses of attention of portfolios: the ten largest and ten best and worst-rated positions in terms of ESG.
Already accompanied by SGSS with regard to Shareholder Meeting voting for the last year or so, following the mandate won by the Bank for an entire range of post-market services, Financière Arbevel is thus enhancing its set-up with access to an independent overview of its investments from an E, S and G standpoint.
“The purpose of the Evergreen solution is to support investors’ responsible investment approach, the ESG score underpinning the shareholder dialogue led by the asset management company in the companies in which it invests, and for a reasonable budget”, says Emmanuelle Choukroun, Global Head of Business Development for the pension fund and sovereign sectors at SGSS.
The development of SGSS’ reporting offer to meet its clients’ expectations has been able to capitalise on the Societe Generale group’s expertise in terms of ESG research, “green” financing and regulatory expertise, a consequence of having Social and Environmental Responsibility as part of the Group’s priority commitments.
1: Article 173 of the French energy transition and green growth law / IORP II directive relative to pension funds and SRD II directive relative to shareholders
2: MSCI: leading supplier of investment decision support tools aimed at institutional investors, with in-depth expertise in the field of performance and risk assessment backed by more than 40 years of academic research, field experience and collaboration with its clients.
Since it was taken over by its current directors end 2008, Financière Arbevel, an entrepreneurial asset management company, has seen its assets under management surge from 25 million to 2 billion euros (including almost €1,100 million in the PLUVALCA fund) amongst all client categories. As well as its domestic market, Financière Arbevel also markets its products in Switzerland, Belgium, Luxembourg and Monaco.
Financière Arbevel’s asset management philosophy is based on financial and strategic analysis, close relations with corporate bosses – more than 1,000 corporate contacts each year – and identifying structural growth themes. The Company is also about to launch a fund in the European non-listed Life Sciences sector.
The workforce is now 34 employees, mostly shareholders, including 15 analysts-managers in collective management.