Summary of responses to the PRI reporting and assessment tool 2008

Groupama Asset Management

Organisational Overview
1. What were your organisation's total assets under management as of 31 December 2007 (in millions)?87903
Please select currencyEuro (EUR)
1a. If 'Other' was selected, please specify the other currency hereNo Answer
4. Please provide an overview of your asset mix as of 31 December 2007 (in %):
Listed equity (developed market, active)21.25
Listed equity (developed market, passive)0
Listed equity (emerging market, active)0.52
Listed equity (emerging market, passive)0
Fixed income - developed markets60.23
Fixed income - emerging markets0.1
Real estate or property0
Private equity0
Hedge fund1.5
Infrastructure0
Currency0
Commodities0
Cash16.4
Other (Please specify): 0
5. Please indicate what percentage of your assets are managed internally and what percentage are managed externally (in %):
 
Internal
External
Listed equity (developed market, active)1000
Listed equity (developed market, passive)00
Listed equity (emerging market, active)8515
Listed equity (emerging market, passive)00
Fixed income - developed markets1000
Fixed income - emerging markets8020
Real estate or property00
Private equity00
Hedge fund1000
Infrastructure00
Currency00
Commodities00
Cash1000
Other (Please specify): 00
6. Please provide the following contact details for your main PRI contact:
URL for webpage outlining the specific services and products your organisation has to assist signatories in fulfilling their commitments to the Principleswww.groupama-am.fr
Principle 1
8. Do you have a statement that makes specific reference to the integration of responsible investment (RI) or environmental, social and governance (ESG) issues within investment decision making and ownership practices?Yes, it is integrated into a broader statement and there is an independent RI/ESG statement
9. In what year were RI/ESG issues first formally addressed in a policy statement (integrated or independent)?2007
10. Has your statement that makes specific reference to the integration of RI or ESG issues been disclosed publicly?Yes
11. Please indicate how this statement that makes specific reference to the integration of RI or ESG issues can be obtained (a URL would be sufficient):http://www.groupama-am.fr/front.aspx?SectionId=226
12. For what percentage of your internal assets under management do you integrate RI/ESG issues into your internal investment decision-making processes? (in %)
Listed equity (developed market, active)70
Listed equity (emerging market, active)0
Fixed income - developed markets35
Fixed income - emerging markets0
Hedge fund0
Cash15
13. To what extent have you integrated RI/ESG issues into your internal investment decision-making processes?
Listed equity (developed market, active)To a large extent
Listed equity (emerging market, active)Not at all
Fixed income - developed marketsTo a small extent
Fixed income - emerging marketsNot at all
Hedge fundNot at all
14. For what percentage of your external assets under management are RI/ESG issues integrated into the investment decision-making processes of your external investment managers? (in %)
Listed equity (emerging market, active)0
Fixed income - emerging markets0
15. To what extent have RI/ESG issues been integrated into the investment decision-making processes of your external investment managers?
Listed equity (emerging market, active)Not at all
Fixed income - emerging marketsNot at all
16. What proportion of your assets involve screening out or excluding stocks or sectors based on ethical (rather than long-term financial) criteria? (in %)
17. Do you have any staff dedicated to RI/ESG issue analysis and/or implementation?
 
Dedicated
Combined full-time equivalents
Investment analyst00
Research analyst43.5
RI/ESG issue policy advisor00
(proxy) Voting specialist10.5
Engagement specialist00
Portfolio manager42
Other (Please specify): Macro Research 10.5
18. Which Board committee or other executive body has overall responsibility for RI/ESG issues?Directory committee
19. Do you assess the capabilities of internal investment staff to incorporate RI/ESG issues?Yes
20. Do you assess the capabilities of external investment managers to incorporate RI/ESG issues?Yes
21. Approximately what percentage of your internal non-ESG-specialist investment management staff received RI/ESG training in 2007? (in %)65
22. What forms of RI/ESG training or awareness raising have been invested in, encouraged or provided for internal staff (investment and other)?Informal internal training,Formal internal training,Conferences,Regular briefings on key issues
23. Did you support the development of nonproprietary RI/ESG issue-related tools, metrics, analysis or academic research in 2007?To a large extent
24. Please indicate how the results of nonproprietary RI/ESG issue-related tools, metrics, analysis or academic research development you supported can be obtained if they have been disclosed publicly (a URL would be sufficient):Rating firms (Vigeo, Riskmetrics) Brokerage studies Academic Chair sponsorings : - FDIR (Sustainable Finance and Responsible Investment) http://www.enseignement.polytechnique.fr/economie/chairefdir/mission.php - FIR Prize http://www.frenchsif.org/en/activities/events/ Participation in most SRI thinktanks and working groups (UNEP FI, Paris Europlace, AFG SRI commission, French SIF and EUROSIF, ORSE, AFGE ...)
25. Have you advocated/supported/ encouraged/participated in RI/ESG issue-related industry-wide training for investment professionals during 2007?Sponsored industry events,Spoke at or attended conferences,Had dialogue or exchanges with peers,Other (please specify): 'spoke at universities and graduate schools'
26. What was your most significant achievement in 2007 in relation to your implementation of Principle 1?Integration of ESG issues in the overall fundamental analyses of sectors and firms. ESG Database implementation to screen European states' sustainability policy. Set up a SRI Bond process (credit and aggregate) Updating of SRI methodology
27. What was your biggest barrier in 2007 with relation to your implementation of Principle 1?Lack of accurate indicators and insufficient transparency of firms' sustainability reporting Poor integration of economic impacts by extra financial rating agencies "Natural" period of time for financial analysts and fund managers to get familiar with and integrate new concepts in their analyses/fund management decisions. Difficulty to assess the impact of ESG issues on performance Financial constraints
28. Please add any overall comments and clarifications related to Principle 1 here.In 2007, we started to systematically integrate the key ESG related issues into fundamental analysis Hiring a new SRI analyst
Principle 2
29. To what extent did you employ the following approaches in your 2007 active ownership strategy for listed equities?
(Proxy) votingTo a large extent
Direct engagement conducted privatelyTo a moderate extent
Direct engagement conducted publiclyNot at all
Collaborative engagementTo a small extent
Filing shareholder resolutionsNot at all
Co-filing shareholder resolutionsTo a small extent
Other (Please specify):No Answer
30. To what extent did you employ the following approaches in your 2007 active ownership strategy for all asset classes other than listed equity?
(Proxy) votingNot at all
Direct engagement conducted privatelyNot at all
Direct engagement conducted publiclyNot at all
Collaborative engagementNot at all
Other (Please specify):Not at all
31. Do you have a (proxy) voting policy?Yes - disclosed publicly
32. To what extent does your (proxy) voting policy direct action on ESG issues? For each issue, please indicate the extent of direction.
EnvironmentalTo a small extent
SocialTo a small extent
GovernanceTo a large extent
33. Does your (proxy) voting policy apply to all voting regions (where possible)?Some (please specify regional differences): 'on a case by case basis'
34. Please indicate how your (proxy) voting policy can be obtained (a URL would be sufficient):www.groupama-am.fr/front.aspx?SectionId=236
35. Do you ensure that voting is done in accordance with your (proxy) voting policy?Yes for all
36. What percentage of total votes cast were against management? (in %)30
37. What percentage of shareholder resolutions relating to environmental, social or governance issues was supported? (in %)
Environmental0
Social5
Governance65
38. Do you conduct (proxy) voting on behalf of your clients?Yes - According to our own policy or client-specific policies
39. How many shareholder resolutions related to RI/ESG issues did you participate in during 2007?
As lead filer0
As co-filer4
Planning to be lead filer in 20080
Planning to be co-filer in 20083
40. How were portfolio companies engaged with in 2007? Please check all that apply.External investment managers engaged portfolio companies collaboratively
41. Do you systematically bring RI/ESG issue-related engagement opportunities to your clients?To a moderate extent
43. How many portfolio companies did you engage directly/were engaged on your behalf on ESG issues in 2007?
 
Extensive engagement
Moderate engagement
Basic engagement
Environmental40200
Social40200
Governance40200
44. What RI/ESG-related issues were addressed in your shareowner engagement initiatives? Please check all that apply.Benefits and compensation,Bribery/corruption,Climate change,Distribution of fair trade products,Environment,Governance,Health,Health and safety,Human rights,Labour issues,Nanotechnology / novel technology
45. How were RI/ESG issue-related engagement targets and topics identified? Please check all that apply.Client directive,Sector exposure,Risk profile,Focus issue
46. Do you set RI/ESG issue-related engagement objectives and attempt to evaluate success?Not at all
47. Have you sought evidence relating to the effectiveness of your active ownership strategy? Please check all that apply.Governance practices changed,Improved disclosure,Collaborative work with a company on a specific ESG issue,Shareholder resolutions withdrawn after successful negotiations with portfolio companies
48. What was your most significant achievement in 2007 in relation to your implementation of Principle 2?Extension of voting to four new countries Increase of participation rate when voting on firms' resolutions Improvement of dialogue with companies Biannual meeting with clients at Eurôka ! Club Lobbying at investor relations' conference
49. What was your biggest barrier in 2007 with relation to your implementation of Principle 2?Diversity of European governance legislation and pratices Proxy services providers not in compliance with requirements Lack of tools to file and monitor the proxy voting policy execution & efficiency
50. Please add any overall comments and clarifications related to Principle 2 here.not answered
Principle 3
51. Have you asked that investee companies (or other investment entities) produce standardized reporting on their RI/ESG issue policies, practices or performance (within annual financial reports or other formats)?To a large extent
52. What format of standardized reporting on RI/ESG issue policies, practices or performance have you requested?Integrated with regular financial reports,Standalone corporate social responsibility or sustainability reporting,Global Reporting Initiative (GRI),Other (please specify): 'Selected ESG criteria'
53. Have you provided feedback to investee companies (or other investment entities) on their reporting on RI/ESG issues?To a small extent
54. Have you sought information from companies regarding their adoption of/adherence to norms, standards, codes of conduct or international initiatives related to RI/ESG issues?
AdoptionTo a small extent
AdherenceTo a small extent
55. Which norms, standards, codes of conduct or international initiatives related to RI/ESG issues have you sought information about from companies, with regard to their adoption of/adherence to?UN Global Compact,Equator Principles,International Labour Organization standards,OECD guidelines for multinational enterprises,Universal Declaration of Human Rights,Other (please specify): 'Governance national codes of conduct'
56. What was your most significant achievement in 2007 in relation to your implementation of Principle 3?Improvement of the quality of direct dialogue with companies
57. What was your biggest barrier in 2007 with relation to your implementation of Principle 3?Lack of material indicators from Sustainability Directors
58. Please add any overall comments and clarifications related to Principle 3 here.Difficulty to dialogue with the right person addressing the issue (such as : Head of HR, Head of Environment, etc).
Principle 4
59. Are you considering RI/ESG requirements when searching for and selecting the following?
External investment managerYes
Investment consultantNot applicable
Proxy votingNot applicable
Engagement overlayNot applicable
Investment researchYes
Internal operations (for example, purchasing, travel, office space etc.)Yes
Other (Please specify):Not applicable
60. Have you linked the following to performance on RI/ESG issues?
Investment monitoringYes
Incentive structure (internal investments)No
Incentive structure (external investments)No
Contractual relationships with external investment managersNo
61. Are the default pension funds or retirement plans offered to your employees also signatories to the PRI?Not applicable
62. To what extent do you encourage your service providers to become PRI signatories?To a small extent
63. To what extent do you encourage your clients to become PRI signatories?To a moderate extent
64. To what extent do you encourage peer organisations to become PRI signatories?To a moderate extent
65. Do you have evidence that you have played a role in the improved integration of RI/ESG issues by external investment managers?To a small extent
66. Does your broker evaluation process include an ESG component or do you have a budget to pay cash for ESG broker research?Yes
67. Have you revisited any relationships with service providers in light of RI/ESG issue-related capabilities?Yes
68. Have you engaged in dialogue, lobbying or initiatives pertaining to government policy and/or industry regulations (for example, stock exchanges, accounting standards) related to RI/ESG issues in 2007?To a large extent
69. What was your most significant achievement in 2007 in relation to your implementation of Principle 4?Dialogue with other asset managers and asset owners to become signatories of PRI at different events Lobbying governmental and professional organisations
70. What was your biggest barrier in 2007 with relation to your implementation of Principle 4?SRI definition SRI lisibility/transparency
71. Please add any overall comments and clarifications related to Principle 4 here.Not answered
Principle 5
72. Did you use the PRI Engagement Clearinghouse in 2007?No
73. Did your use of the clearinghouse result in subsequent action or collaboration with other signatories?No Answer
74. Please elaborate on how the PRI Engagement Clearinghouse could be made more useful:The Engagement Clearinghouse initiative is still of great interest for us. Due to temporary understaffing, we have not been able to take part more actively in it but we will definitively re-think our position in 2008.
75. To what extent do you participate in the following RI/ESG issue-related collaborative engagement initiatives and/or industry associations? For those not listed, please use the "other" field:Regional social investment organisation (for example SIF or UKSIF),United Nations Environmental Program Finance Initiative (UNEP FI),Other (please specify): 'FIR/EUROSIF, AFGE, ORSE'
76. Please indicate the three RI/ESG issue-related collaborative engagement initiatives and/or industry associations that you participated in most extensively and indicate how you did so:
United Nations Environmental Program Finance Initiative (UNEP FI)Materiality of ESG issues to Equity pricing (2004) Freshfields (2005) Fiduciary two (2008)
Regional social investment organisation (for example SIF or UKSIF)Shareholders engagement working group
Other (please specify)
AFGE Coporate Governance practices
77. What was your most significant achievement in 2007 in relation to your implementation of Principle 5?FIR working group on engagement with companies Working group on cluster bombs issues with French and Belgian asset managers ORSE Working group on GRI translation into French ORSE Working group on SRI promotion & distribution Paris Europlace SRI commission on SRI development.
78. What was your biggest barrier in 2007 with relation to your implementation of Principle 5?Diversity of cultural approaches various priorities on ESG issues Competition
79. Please add any overall comments and clarifications related to Principle 5 here.We are committed to principle 5 more specifically through thematic asset managers working groups.
Principle 6
80. Have you disclosed how RI/ESG issues are integrated into your investment processes?Yes - to clients or beneficiaries
81. Please indicated how this disclosure of how RI/ESG issues are integrated into your investment processes can be obtained (a URL would be sufficient):The integration of ESG issues is twofold at Groupama AM - SRI specific funds (EURO CAPITAL DURABLE, Groupama Evolution dynamique... and various institutional SRI mandates): The integration of ESG issues in the investment process is disclosed in marketing material and regularly presented to investors and clients. - Concerning mainstream investment management, the integration of ESG issues is formalized within equity and credit analysis process (all new fundamental recommendations now integrate ESG issues), made available to fund managers and regularly presented to clients and investors.
82. To what extent do you disclose your annual (proxy) voting record?Disclose votes and guidance explaining votes
83. Please indicated how your (proxy) voting record can be obtained (a URL would be sufficient):The voting rights policy is applied systematically and is available on our website. We perform a detailed analysis of our votes (Yes and No ratios and classification of resolutions approved or rejected...) on an annual basis on http://www.groupama-am.fr/front.aspx?SectionId=241
84. Do you systematically report (privately and/or publicly) on your RI/ESG issue-related engagement activities, results and progress?To a small extent
85. Please indicate how your reporting on RI/ESG issue-related engagement activities, results and progress can be obtained (if it is publicly available, a URL would be sufficient):Only internal disclosure on a case by case basis
88. Are you undertaking any additional efforts to raise awareness of the PRI and RI/ESG issues amongst stakeholders?To a large extent
89. What evidence do you have of the impact on external investment manager practices? Please check those that apply.Not applicable
90. Have you sought to determine what impact your overall RI/ESG issue-related efforts (voting and engagement, investment decision making, disclosure, etc.) have had on corporate behavior or performance?To a small extent
91. Have you sought to determine what impact your RI/ESG issue-related approach has had on the performance of your portfolio?To a small extent
92. Have you sought to determine what impact your RI/ESG issue-related efforts, requests and guidance have had on the consideration of RI/ESG issues by your external service providers excluding external investment managers (for example: research providers, consultants, etc.)?To a large extent
93. Do you report on progress and/or achievements relating to the PRI or RI, and how would you like to publish your response to this assessment?Please automatically publish our responses to the reporting and assessment tool in full on the PRI website
94. What was your most significant achievement in 2007 in relation to your implementation of Principle 6?Groupama AM discloses Principle 6 on its website as well as in our marketing presentations to clients and in various speeches at conferences biannual ISR meeting with clients : Euroka Club, Investors meetings : AFGE, Global Institutional Forum, Grenelle de l'environnement, ORSE Club Finance, France Investissement (CDC), Business Schools : ESSEC, EDC, Engineering Faculty : UTC)
95. What was your biggest barrier in 2007 with relation to your implementation of Principle 6?Our SRI policy integration within fundamental analysis, which is now the main part of our effort, is qualitative with a long term time horizon and difficult to report on.
96. Please add any overall comments and clarifications related to Principle 6 here.Did not answered
Emerging Markets
97. To what extent have you actively thought about how to integrate RI/ESG issues within investment decision making and ownership practices with regards to emerging markets investments?Not at all
98. Please describe your activities with regards to integrating RI/ESG issues within investment decision making and ownership practices with regards to emerging markets investments.not applicable : main assets under management are in Europe
99. To what extent do you believe the integration of ESG issues in emerging markets is as relevant as the integration of ESG issues in other markets?To the same extent
100. To what extent did you employ the following approaches in your 2007 active ownership strategy in emerging markets?
(Proxy) votingNot Applicable
Direct engagement conducted privatelyNot Applicable
Direct engagement conducted publiclyNot Applicable
Collaborative engagementNot Applicable
Filing shareholder resolutionsNot Applicable
Co-filing shareholder resolutionsNot Applicable
Other (Please specify):Not Applicable
101. To what extent have you developed a comprehensive RI/ESG engagement capability regarding business activities in emerging markets?Not Applicable
102. Please list the three most often addressed RI/ESG-related issues in your shareholder engagement initiatives in emerging markets?
1.not applicable : main assets under management are in Europe
2.
3.
103. Have you sought information from companies regarding their adoption of/adherence to norms, standards, codes of conduct or international initiatives related to RI/ESG issues in emerging markets?
AdoptionNot Applicable
AdherenceNot Applicable
104. Do you take RI/ESG considerations into account when selecting and approving emerging markets external investment managers?Not at all
105. Do your consultants factor RI/ESG issues into their short listing of emerging markets external investment managers?Not at all
106. Do you have evidence that you have played a role in the improved integration of RI/ESG issues by external investment managers investing in emerging markets?Not at all
107. To what extent have you worked together with other investors to improve the effectiveness of implementing the PRI in emerging markets?Not at all
108. Are you undertaking any additional efforts to raise awareness of RI/ESG issues in emerging markets?Not at all
109. Have you sought to determine what impact your RI/ESG issue-related efforts (voting and engagement, investment decision making, disclosure, etc.) have had on corporate behaviour or performance in emerging markets?Not at all
110. Please add any overall comments and clarifications related to the PRI in emerging markets here.not applicable : main assets under management are in Europe
111. What is your top PRI-related goal/priority for emerging markets in 2008?not applicable : main assets under management are in Europe
Closing Comments
112. Why did your organisation join the PRI?The ESG integration approach started as early as 2003 within Groupama AM focusing initially on equity and credit analysis. Hence Groupama AM was one of the earliest players in France to contribute to the drafting of the PRI. Those principles match Groupama AM's long term vision of SRI. Moreover Groupama AM strongly believed that SRI development needed an institutional framework and public engagement of major institutional investors and asset managers
113. Please describe the benefits you have enjoyed as a result of signing the PRI:More credibility with clients A better quality of dialogue with issuers
114. To what extent do you believe the PRI has succeeded in changing investor behaviour and/or raising awareness or capacity on RI/ESG issues? Do you have any examples you could share?The large numbers of investors who signed the PRI contributes to increasing SRI awareness (example: questions about PRI in RFPs)
115. What are the top three activities the PRI Secretariat could undertake to enhance and encourage further implementation of the PRI by current and prospective signatories?
1.Enhance discussion and benchmarking through interactive meetings, conferences and workshops
2.Improve dialogue between asset owners and asset managers
3.Contribute to the dialogue between issuers and asset managers as well as asset owners
116. What are your top three PRI-related goals/priorities for 2008?
1.We will continue to push the ongoing integration process of ESG issues within equities, credit and fixed income research and fund management, and develop investment management tools
2.Finalize the fixed income SRI process
3.Contribute to SRI working groups, participating to engagement activities Raising SRI awareness of students, clients, issuers, stakeholders...
117. Please rank the six principles from most difficult to implement to least difficult to implement:
Most difficult
1
Principle 4
2Principle 5
3Principle 6
4Principle 1
5Principle 2
Least difficult
6
Principle 3