News

Nicolas Chaput
Global CEO and Co-CIO
ODDO BHF Asset Management

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Our societies are facing two major challenges: integrating technological transformations that gain new momentum by artificial intelligence, and addressing the potential limitations brought on by the climate emergency and by the need to reduce inequalities – all the while aspiring to building a more sustainable and responsible model of development.

The importance of climate change, some of whose well-known consequences are rising sea levels, weather disruptions and population displacement, is accepted by a consensus of scientists, politicians and ordinary citizens. The World Meteorological Organization wrote on December 3rd, 2019 that “the year 2019 concludes a decade of exceptional global heat, retreating ice and record sea levels driven by greenhouse gases from human activities.”

There is no doubt that the combined impacts of technological transformations and the climate emergency will transform our public and private organisational models, our modes of consumption, social lives, biodiversity, habitat, and our very identities.

The investment world must make an active contribution to this shift, as it is both a necessity and an opportunity. We are convinced that integrating environmental, social and governance criteria into our investment decisions will make a positive contribution to this change. Public authorities are right to join in. The European Commission, for example, is working on the definition of a system of classification or “taxonomy” of economic activities deemed “environmentally sustainable” for investors, to better steer financial flows.

While the “environment” dimension is currently drawing most attention, let’s not overlook the “social” and “governance” components. From gender policy and diversity to human rights to the alignment of interests between shareholders/bondholders, managers and employees, sustainable investment strives to understand and assess all the extra-financial aspects of the issuers in which we invest.

We believe our role is also to provide the information to all our clients and employees that is necessary for properly understanding responsible investment.

Through our “Basics of sustainable investing” document, we aim mainly to guide those investors who are beginning to take greater interest in this issue and want to acquire some basic notions on sustainable investment.

ODDO BHF Asset Management has been a sustainable investment player since 2010, when it signed the Principles for Responsible Investment (PRI*). Our main strategies now integrate ESG criteria, and seven of our open-ended funds have even been awarded the SRI** label and two the FNG*** label. In early 2019, we laid out an ambitious roadmap leading up to 2021, organised around four vectors: ESG coverage, ESG integration, climate strategy and training.

* PRI: The Principles for Responsible Investment (PRI) were launched by the United Nations in 2005 to encourage investors to take sustainable investment principles into account in their investment processes. ** SRI (“ISR”) label: Created and supported by the French Finance Ministry, the SRI label aims to shed light on socially responsible investments (SRI) for investors in France and Europe. The SRI label, which is awarded after a rigorous process conducted by independent bodies, constitutes a unique benchmark for investors wishing to take part in a more sustainable economy. *** FNG: The FNG label is issued by the German Sustainable Investment Forum (Forum Nachhaltige Geldanlagen). It guarantees the SRI quality of funds distributed in Germany. It was launched in 2015 following a three-year development process involving the main stakeholders. FNG certification is subject to renewal each year.

Disclaimer

ODDO BHF AM is the asset management division of the ODDO BHF Group. It is the common brand of four legally separate asset management companies: ODDO BHF AM SAS (France), ODDO BHF PRIVATE EQUITY (France), ODDO BHF AM GmbH (Germany) and ODDO BHF AM Lux (Luxembourg).

This document has been drawn up by ODDO BHF ASSET MANAGEMENT SAS for all market communication. Its goal is to present the ODDO BHF AM brand. Its investor communication is the responsibility of each promoter, distributor or advisor. Potential investors are invited to consult an investment advisor before investing in a strategy. Investor’s attention is drawn to the fact that all strategies are not authorised in every country. Should they decide to invest, investors are invited to acquaint themselves with the detailed nature of any risks incurred, in particular the risk of capital loss. The value of the investment may vary both upwards and downwards and may not be returned in full. The investment must be made in accordance with investors’ investment objectives, their investment horizon and their capacity to deal with the risk arising from the transaction. ODDO BHF AM SAS cannot be held responsible for any direct or indirect damages resulting from the use of this document or the information contained in it. This information is provided for indicative purposes and may be modified at any moment without prior notice. Investors are reminded that past performance is not a reliable indication of future returns and is not constant over time. Any opinions presented in this document result from our market forecasts on the publication date. They are subject to change according to market conditions and ODDO BHF AM SAS shall not in any case be held contractually liable for them.

From January 3, 2018, when ODDO BHF ASSET MANAGEMENT provides investment advisory services, please note that it’s always on a non-independent basis pursuant to the European Directive 2014/65/EU (so-called “MIFID II Directive”). Please also note that all recommendations made by ODDO BHF ASSET MANAGEMENT are always provided for diversification purposes.