Negative and positive screening - How we integrate ESG considerations in our responsible and sustainable investment solutions
Sustainable and responsible investing (SRI) is a major feature of Mirabaud Group’s Corporate Social Responsibility (CSR), which relies on four distinct pillars:
- an economic responsibility towards clients and business partners,
- a social responsibility towards the Group’s employees,
- an environmental responsibility,
- as well as societal responsibility for communities and the wider society.
To achieve Mirabaud Group’s economic responsibility goal of offering a comprehensive range of responsible and sustainable products and services, at Mirabaud Wealth Management, we aim to deliver high quality products and services that integrate ESG considerations. The management of ESG risks, as well as the promotion of ESG topics, are key drivers of our global SRI approach.
As explained in our Sustainable and Responsible Investing Policy, reflecting a pragmatic investment philosophy, our global ESG approach is based on both exclusion (negative screening) and inclusion (positive screening):
- While we favor inclusion rather than exclusion, it is our view that exclusion is a necessary step when it comes to tackling particularly non-sustainable areas. Our exclusion policy aims at systematically excluding from investment three activities that are considered extremely negative in terms of sustainable impacts. In this regard, the exclusion policy constitutes our main due diligence tool to manage ESG risks.
- For clients who are interested in investing in a responsible and sustainable manner, we offer investment solutions that fully integrate ESG considerations. By discussing with our clients, we are equipped to provide them a selection of different ESG investment solutions that best fit their expectations, values and ESG beliefs. This selection of ESG products is purely optional and tailored to our clients’ specific needs (bespoke approach).
Negative screening - Exclusion to avoid adverse sustainability impacts
At the Group level, the exclusion policy systematically applies to the three below-mentioned activities that are commonly known to generate adverse impacts on the environment and society. We consider that these three commercial activities not only entail unbearable sustainability risks, but may also cause important financial and reputational damage. Our exclusion policy allows us, in our role of financial adviser, to avoid contributing to significant adverse impacts.
In coordination with the Group’s two other entities, we establish a list of securities that correspond to these exclusion criteria. These securities cannot be invested within any discretionary mandate, or proposed to advisory mandates. This list is periodically reviewed.
We make sure that the equities and corporate bonds we recommend fully meet these standards.
Along with the systematic implementation of these exclusion criteria, other types of commercial activities may be excluded upon a client’s request. At Mirabaud Wealth Management, in discussion with our clients, we identify and exclude from portfolios companies and sectors that do not correspond to their values and convictions (e.g. fossil fuel production, production of armaments or defense products and services, alcohol production, animal testing, meat production, etc.). In the same spirit, always depending on the client’s sensitivity and in a non-binding manner, we also help identify and exclude companies that are involved in severe and recurrent ESG controversies (environmental pollution, human rights violations, corruption, etc.).
Positive screening – Integration of ESG considerations
We have developed a broad offer of ESG products, in different asset classes, to respond to clients’ demand for responsible and sustainable investment solutions. Such products are selected when clients express interest in a sustainable mandate. The final product selection takes into account the preferences expressed by our clients (for example, in terms of ESG themes to advance, such as climate change). This type of screening is therefore neither binding nor systematic.
- ESG Equities: all equities we recommend undergo an ESG analysis (key information on material ESG risks and the company’s ESG management).
- ESG Corporate Bonds: bond issuers in some sensitive sectors are subject to an internal analysis (key information on material ESG risks and the company’s ESG management).
- Funds and ETFs: we offer a broad selection of thematic, as well as active and passive funds exposed to different sustainability trends and themes.
- Thematic baskets: we offer thematic static or dynamic baskets with ESG features.
For all these different products, when analyzing securities or selecting ESG funds, we systematically look into ESG risks that are deemed material from a sustainability perspective. Through positive screening, our objective is to advance sustainability, in its many forms, in the economy and the wider society. In everything we do, we strive to serve our clients in the best possible manner, by understanding their needs and expectations, including in terms of responsible and sustainable investment solutions.