Responsible in our investments

As a signatory of the UN-backed Principles for Responsible Investment (PRI) initiative and a pioneer in the field of SRI (Sustainable and Responsible Investing), we have committed that we will increasingly integrate Environmental, Social and Governance (ESG) criteria into all of our investment processes. We strongly believe that doing so is vital to maximise the long-term performance potential of the assets that our clients entrust us to look after.

A long-term signatory of the PRI

Back in 2006 we became one of the first signatories of the PRI, and have renewed our commitment to the principles every year since.

We are committed to abiding by these broadly respected principles, which represent rules that responsible investors should adhere to. An important part of our commitment is providing our clients with access to a broad range of SRI solutions, while also increasingly integrating ESG criteria into our non-SRI investment processes.

Signatory of the UK Stewardship Code

Candriam supports the UK Stewardship Code and the principles of good stewardship that are set out in the Code. Detailed below is an overview on how we comply with the Principles of The UK Stewardship Code.

See Candriam UK Stewardship Code (in English)

An engaged investor

As a responsible asset owner, at Candriam we pursue an active proxy voting policy with the companies in which we invest. This means that we vote in the best interests of our clients at company shareholder meetings, paying close attention to a company’s corporate governance policies, structures and practices.

We also engage in regular dialogue with companies, particularly with respect to matters related to sustainable development.

And we believe that it’s vital to be fully transparent to our clients about our activities in this field. With this in mind, every year we outline our proxy voting policy and the positions we have taken at shareholder meetings in an annual review, and we also publish an annual engagement report providing details of how we have engaged with companies over the preceding 12 months.

Integrating ESG in our investment processes

We strongly believe that an assessment of ESG factors is vital if we want to be able to fully understand a company’s long-term performance potential and risk profile. For this reason, we encourage all of our asset managers to consider ESG factors when they are making investment decisions.

To this end, our mainstream asset class experts have access to a centralised database that contains detailed ESG data on each company that we cover as well as a range of in-house SRI research documents. What’s more, our analysts and portfolio managers are in regular contact with our SRI experts. This provides them with in-depth understanding of each company’s business model and the practices it follows.

With the increasing importance of ESG factors in company business models, we intend to integrate more ESG criteria throughout the investment processes of our mainstream products.

A pioneer in SRI

SRI has been at the heart of our business for nearly 20 years. Over this time we have built up one of the biggest dedicated SRI teams in Europe, with the result that today we manage a broad range of SRI strategies across geographic regions and asset classes, accounting for more than 20% of our total assets under management.