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

Our fundamental values

''Grow your portfolio while reducing your environmental footprint''

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.

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.

ENVIRONMENTAL IMPACT

The 2PM Group actively collaborates with the Danish company GOODWINGS to reduce the environmental impact of its employees' travels. GOODWINGS is 2-in-1 travel and ESG solution that helps track and reduce the business travel emissions by investing in areas with very high climate added value such as biofuels and/or participation in a reforestation programme in Uruguay.

Reducing the environmental impact of our activities is fundamental and Goodwings allows us to achieve this ambition through concrete and measurable actions.

WHEN 2PM MAKES A SOURCE OF POLLUTION A SOURCE OF SOLUTIONS

EVENTS/ACTIONS

2PM often joins beach clean operations organized by TAF The Animal Fund

2PM participates actively at European Week for Waste Reduction (EWWR)

Please find summary report of the EWWR action

Philanthropy

As part of its philanthropic policy, the 2PM Group is proud to announce that it has been able to financially support three organisations 100% active in the Environment and Social fields (support 2023 on fiscal year 2022).

Two of them are committed to protecting marine and terrestrial biodiversity. The third in improving the living conditions of orphaned children in Kenya.

This financial support comes from part of the annual management fee (25%) generated by the sub-fund of the 2PM Group's Golden Peak Greentrack Sicav (LU0375790176), a multi-asset class fund that replicates the 2PM Group's ESG values.

2PM has helped:

The French Association Lebao’s Kids Association (LBK)

The Association TAF The Animal Fund

The Belgian Company Zuko SA

We sincerely thank these 3 organisations for their efforts and contribution to making our planet healthier and more human.

AT 2PM, WE HELP MAKE OUR PLANET HEALTHIER AND MORE HUMAN

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

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

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