We can apply your chosen ESG filters to listed asset classes – only available for discretionary asset management mandates and certain amounts.
Investing in a positive and sustainable way
Understand your needs
Investing in SRI implies adding Environment, Social and Governance (ESG) factors to standard financial criteria.
Our approach is twofold. First, we exclude the companies running activities incompatible with a sustainable future (e.g. controversial weapons and coal). Second, our investment experts select the instruments from issuers most involved in environmental, social and governance causes.
- We select the funds combining both our financial and extra-financial criteria.
- We help you have a positive societal impact via charity-based structured products* designed by Societe Generale.
(*) These products include a donation to partner charities fighting cancer or poor housing conditions, or supporting disabled people or disadvantaged children.
Why us ?
We offer turnkey solutions rigorously chosen by our external fund selection platform.
You have access to innovative structured products developed by our teams and exchange-traded funds issued by Lyxor, Societe Generale’s asset management subsidiary*.
(*) An ETF is a listed financial instrument that tracks an underlying stock-market index.
Step by step
We discuss your investor profile, including the level of risk you are prepared to take to achieve your expected return and ESG requirements.
We suggest solutions matching your investor profile.
A very dynamic market…
In Europe, assets that incorporate ESG criteria grew by 60% between 2016 and 2018, representing assets under management of over 4 trillion euros*.
… that will become the dominant market in coming years.
Every two years, the Global Sustainable Investment Alliance (GSIA) publishes a report compiling global responsible investment data. The latest report dating from 2017 shows that ESG investments totalled 22.890 trillion dollars in early 2016, up 25% from the 2014 figure
(*) See the 2018 eurosif study: www.eurosif.org/wp-content/uploads/2018/11/European-SRI-2018-Study-LR.pdf
Are ESG investments less profitable or riskier than more standard financial products ?
Many academic studies* have shown that SRI offers similar returns to other investments. The inclusion of extra-financial risk factors often reduces volatility. However, as the saying goes, past performance is no guarantee of future performance. By investing in ESG-compliant companies, you contribute to long-term sustainability.
(*) Source: www.lelabelisr.fr and notably the reports on ESG AND FINANCIAL PERFORMANCE (Article by Gunnar Friede, Timo Busch & Alexander Bassen (2015)), Journal of Sustainable Finance & Investment. FINANCIAL PERFORMANCE OF SRI (Revelli-Viviani article (2014)) – Business Ethics: A European Review
Does the inclusion of ESG criteria increase fund management costs ?
ESG investment requires specific skills and expertise. However, this should not increase costs.
What’s the difference between ethical investment and ESG ?
Actually, the first stage of ESG filtering is based on ethics. It consists in excluding companies doing business in sectors incompatible with the investor’s values (e.g. tobacco, weapons). There also exists a more global SRI approach called “best in class”, where only the issuers with the highest ESG ratings are selected, whatever their economic sector.
What is the difference between SRI and ESG ?
It’s the same. Socially responsible investments (SRI) take ESG criteria into account. France has created two labels for funds: the SRI Label based on the United Nations’ Principles for Responsible Investment (UN PRI)* and the TEEC label (Transition Energétique et Ecologique pour le Climat, or Energy and Ecological Transition for the Climate). However, funds tend to be called “SRI funds” in both cases.
(*) UN PRI definition of SRI: Responsible investment is an approach to managing assets that sees investors include environmental, social and governance (ESG) factors in their decisions about what to invest in, so as to better manage risks and generate sustainable long-term returns.
How does ESG support sustainable development ?
First, there is a direct impact, as asset managers don’t limit their involvement to selection. They also encourage issuers to improve their ESG practices and, when possible, they vote at shareholder meetings (they can even oppose resolutions that do not meet their ESG requirements).
Second, there is a more indirect impact. The issuers the least ESG compliant will now struggle to raise money on financial markets.