Your browser is not up to date and is not able to run this publication.
Learn more

20 19 NFR

27INTERVIEW | ODDO BHF CORPORATES & MARKETS

The ODDO BHF ESG research team is celebrating its 15th anniversary this year. How has your work changed over the years? JEAN-BAPTISTE ROUPHAËL → We have inte- grated governance into financial analysis (power relations, management authority, etc.), as this is a particularly significant to- pic. In response to the demand for socially responsible investments (SRI), we have also extended our analysis to social and envi- ronmental aspects. The climate emergen- cy is leading to very high demand for ESG research among traditional asset ma- nagers. For this reason, we are working to eliminate the divide between financial and non-financial analysis in order to achieve full integration.

MARC LAVAUD → We are using our gover- nance expertise again this year by expan- ding our historic study, from now on to be called Effective and Sustainable Gover- nance , with social and environmental go- vernance topics. In addition to the traditio- nal criteria, we now rate companies ability to cover these topics in their management boards (presence of a board member who specialises in one of these topics, stipula- tion of environmental and social criteria for CEO remuneration, etc.)

What does a normal working day look like for you? JEAN-BAPTISTE ROUPHAËL → Every Monday, we send our clients a document with the week s ESG news: regulations, new develop- ments, controversies. We then consider the data and thinking on ESG discussed in the financial analyses in this light. In addition, we report regularly on important issues. In 2019, we looked at the topic of CO2 for aviation and the steel and cement industries. We also compile precise analyses of other to-

pical issues such as blockchain or the desa- lination industry. Finally, we organise events, such as our sustainability forum in Paris eve- ry July, which is aimed at large enterprises, and the ESG info stand at the annual ODDO BHF Forum in Lyon in January. We also orga- nise events that allow companies to present their CSR strategy to investors in the pre- sence of competitors.

What method do you use for your analysis? JEAN-BAPTISTE ROUPHAËL → Our analysis me- thod is to identify companies key ESG to- pics, to investigate more-sustainable pro- duction models and to evaluate companies ability to use them on the basis of the op- portunity/risk model. We use our access to the companies managements to obtain a more informed overview of the involvement of organisations and individuals in these is- sues, as well as the expertise of our ana- lysts, who have many years of industry and management experience. The alignment of companies long-term strategy to a sustai- nability approach is crucial for our evalua- tion and we do not have to weight E, S and G performance individually.

MARC LAVAUD → To monitor governance, we use input from financial analysts and bene- fit from their in-depth knowledge about the management and strategy of the compa- nies they cover. We combine their extensive knowledge as sector specialists with our ex- pertise in tools for governance analysis.