2PM's APPROACH TO ESG

ESG - An effective tool for change !

What is ESG ?


ESG stands for :

ENVIRONMENT

SOCIAL

GOVERNANCE

(broader ethical approach than SRI)



The concept is often related to the term SRI :

SOCIALLY

RESPONSIBLE

INVESTMENT

(« Best in Class » approach, thematic, exclusions policy)



ESG integration is the analysis of all material factors in investment evaluation and investment decisions, including environmental, social, and governance factors.
This involves making investments with the aim of creating a measurable beneficial impact on the environment or society, as well as earning a positive financial return.

2PM positions itself on the main generic principles of Responsible Investment and Sustainable Development.

References made to the 17 United Nations Sustainable Development Goals, to the 6 goals of new directive of the European Taxonomy and to the 6 principles of PRI.
The adoption and application of ESG rules by corporates often lead to an active policy of Impact Investing.

 

ESG background and facts



The concept of ESG is not new (17th century in the US)


However it has too often been used for marketing purposes and not for real ecological purposes (recent new regulations should help to prevent trend towards Greenwashing)


A harmonious life of man is only possible in the LONG TERM if he/she fully respects his/her environment, the humans, the animals and the vegetal world. Without the ocean and the forests, any kind of life requiring oxygen is totally impossible


Global warming and the worrying degradation of the planet caused by human activity are slowly pushing the public authorities to adopt corrective measures (all COPs)


The Covid-19 crisis has prompted governments to speed up voting and provisioning budgets dedicated to financing sustainable businesses (European Green Pact)


Indirectly, the Asset Management Companies must necessarily integrate sustainability into their investment instruments as a tool for the ecological transformation/transition


ESG rules are a powerful tool for the structural transformation of our societies


Growing demand for the integration of ESG into the economy justified by:


Sharp rise in awareness on environmental issues among the public

Companies want to drastically reduce their reputational risk

Strategic business development decisions are made with a better understanding of environmental issues

Shareholders are more active in AGMs on ESG topics

Growing desire to have a positive impact on the life of our society


Integrating ESG instruments into portfolios allows:

To increase the defensive nature of portfolios

To include sectors / companies that are often rich in technological innovation and which therefore will offer strong growth prospects


ESG


The 6 environmental EU taxonomy goals


1. Climate change mitigation

Production and distribution of renewable energy

Improving energy efficiency

Increase clean and carbon neutral mobility

Switch to the use of renewable materials from sustainable sources

Carbon capture, storage and use

Strengthen the earth's natural carbon sinks through forest restoration, regenerative agriculture, etc.

Construction of energy infrastructure allowing the decarbonization of energy systems

Clean and efficient fuel production from renewable or carbon neutral energy sources


2. Adaptations to climate change

3. Protection and sustainable development of water and marine resources

4. Transition to a circular economy

5. Pollution control and prevention

6. Protection and restoration of biodiversity and ecosystems



ESG

Independence

The capital of the companies of 2PM Group is held by a set of stable private shareholders which guarantees its independance of action.
The tripartite operating model (Client-Custodian Bank-2PM) ensures that 2PM's interests are aligned with those of its clients.

Transparency

Whether it is the management policy, remuneration or even relationships with counterparties, the companies of 2PM Group promote transparency.
2PM adopted this position even before the entry into force of the Mifid regulations at the end of 2007.

Quality

The 2PM Group offers personalized solutions combined with quality service and always strives for excellence.

Continuity

Because 2PM Group's interests are aligned with those of their clients, 2PM are able to build solid long-term relationships based on trust and to advise its clients at all important stages of their lives.

ESG

2PM commits to ESG !


ASSET MANAGEMENT :

A team of committed Portfolio managers maintains a continous dialogue with ESG specialised fund managers for the selection of the most appropriate ESG financial instruments.

2PM DOES MORE THAN TALK ABOUT SUSTAINABILITY – IT IMPLEMENTS IT INTO ITS DAILY LIFE!


200 ESG investment professionals
+25 employees dedicated to ESG
25 years of SI history



 

 

OFFICE

Not only in their investments but also in their offices have they shown an environmental commitment, making them an inspiration towards their customers and co-workers.


In 2PM’s offices, all employers have their own stainless-steel water bottle and the offices use glass water jugs and glass bottles for their clients. The water is purified in a water fountain. The offices use recycled paper, and waste including ink cartridges are carefully sorted and recycled.


IMPACT INVESTING

In addition, 2PM is actively supporting an environmental conservation NGO (TAF- The Animal Fund) since its launch in 2015. ''We have chosen a smaller active local player with real honest commitment and without financial ties to bigger operations''.


2PM's support to TAF means financial contribution and personal commitment of the employees through attending several activities such as educational work for schools/universities, educational stands at events, environmental conferences, and large clean ups in various countries.


Please find below some images of 2PM's engagement to protect the environment.










Our ESG philosophy


2PM group offers investment solutions to each individual client, while ensuring a consistent integration of ESG criteria


Integrity and solid engagement in our investment processes together with our endless commitment to our environmental partners


Those who respect the ESG today are those who will earn tomorrow!


Successfully committed to sustainable, transparent and long-term oriented investment


POSITIONING AND INVESTMENT IN ESG

ESG investment came naturally to 2PM because it fits perfectly with its values


The implementation of ESG is in total differentiation from Greenwashing, which still devalues too much the noble character of honest ESG


The 2PM approach to ESG is based on convictions and transparency


2PM offers its clients ESG solid financial instruments and solutions


2PM always invests in funds that all have a solid ESG "Momentum“


2PM is committed to inform its clients about the importance of ESG


2PM only invest in financial instruments that present the same ESG convictions as its own


Values-based investing requires an allocation of capital to responsible companies with sound governance and respectable social practice



Globe

THE ESG PORTFOLIO CONSTRUCTION PROCESS

Clarity AI in the 2PM ESG approach


A financial instrument may have a lower ESG score and may nevertheless be part of the portfolio if and only if :


It is totally in line with the objectives of substainable developement and positive impact


It has a strong and favorable ESG Momentum


This same rule is applicable in the case of individual securities and also to a fund when the manager selects securities that offer ESG Momentum


Definition of personalized impact measures based on the 2PM corporate ESG sensitivities



Did you know ?