Risky sectors: exclude them or foster their responsibility?

Faced with a sector posing multiple ESG risks likely to worry shareholders, many responsible investors exclude it straight off. Other investors choose rather to initiate dialogue with companies to work together towards an improvement of their practices. The respective merits of these divergent strategies was debated as well as an account given on the work of the Extractive Industries Transparency Initiative (EITI)

David Diamond, Head of Sustainable and Responsible Investment, Allianz Global Investors (France) While Allianz GI is not a great supporter of sector exclusion, David Diamond explained his reasons for this and put forward instead his interest in engaging with companies, particularly by means of collective initiatives such as the EITI. He expounded Allianz’s exclusion approach for its SRI funds based largely on a respect for human rights which he considers to be an essential base for sustainable development.

Christophe Butz, Sustainability expert, Pictet Asset Management (Switzerland) One of the strategic objectives of Pictet is to implement and manage projects linked to sustainable development. Christophe Butz set out the different exclusion and engagement practices adopted by the asset management company. He also spoke of Pictet’s black list and the partnership with the Foundation Ethos who help implement Pictet’s engagement policy for its thematic funds. Un des objectifs stratégiques de Pictet est de mettre en place et de gérer des projets liés au développement durable.

Céline Louche, Teacher and researcher, co-author of « Dilemmas in Responsible Investment » (Belgium) Céline Louche addressed the question of exclusion from a theoretical angle, in particular speaking of a certain number of questions that investors have to ask themselves in order to establish their exclusion and engagement policies.

Rosl Veltmeijer, Head of Sustainability Research, Triodos Investment Management (Netherlands) Rosl Veltmeijer explained the reasons why Triodos has adopted a demanding funding and investment policy that put into practice, consists of the exclusion of numerous sectors and activities.

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