As the financial world is playing a key role in the emergence of a sustainable economy, BDL Capital Management uses an ESG framework in its fundamental analysis of companies.
A fourth industrial revolution has started in order to substitute fossil fuel energies with renewable energies that do not produce Green House Gas emissions (GHG emissions). This revolution has implications for all industries, changes consumers’ behaviours and put new requirements on providers of goods and services.
Cette révolution industrielle touche l’ensemble des secteurs de l’économie, change les pratiques des consommateurs, imposent de nouvelles exigences aux fournisseurs. Des investissements très importants en découlent et sont sources de risques et d’opportunités.
Companies need to adapt to continue to strive in this new world.
Our proprietary ESG method, our ongoing discussions with companies’ management teams and our letters to CEO’s are initiatives that we take to help us select the companies that will strengthen their practices and contribute to the emergence of a more sustainable growth model.
To help us, we have signed partnerships with the following organizations :
We also support the below initiatives :
Helping change things is also about not investing in certain areas :
- No financing of anti-personnel mines
- No companies in the tobacco sector*
- No companies with more than 25% of their revenues dedicated to civil arms
- No companies with more than 25% of their revenues dedicated to coal
- No companies with more than 25% of their revenues dedicated to adult entertainment
Finally, building a more resilient world is also about reducing inequalities. BDL Management has set up the Rempart Foundation which donates to non profit organizations dedicated to help people with disabilities.
Our ESG approach
BDL Capital Management has built a proprietary ESG method called QIRA.
QIRA stands for : Quality Investing Responsible Analysis. This summarizes our approach: selecting companies that make sure to strengthen their practices to make their business model more sustainable.
QIRA is built upon a 50 question Questionnaire inspired by the Sustainable Development Goals.
Through our ongoing dialogue with companies and reading their sustainable and annual reports along with other sources, we score each company in which we invest on the transparency of their ESG information. We then score the companies on the quality of their ESG practices using our sector expertise and our partnership with CDP. By adding the 2 scores we get to our QIRA score (out of 20).
Example of a company's QIRA rating:
« L’approche ESG de BDL : au-delà des bases de données »
Our letters to CEO’s
To contribute to the emergence of a carbon neutral world, we send letters to corporate management making clear our expectationsas long-term shareholders..
We want companies to:
- complete the CDP questionnaire on their climate strategy, and make it public
- undertake to publish scientifically validated greenhouse gas reduction targets
- work towards “leader” status « leader » and an A rating from CDP
These three goals are concrete and measurable.. If all companies complete them it would ensure great transparency, speedier initiatives and a decarbonisation of the economy in line with the objectives of the Paris Agreement.
Our ESG partnerships
BDL Capital Management has been a PRI (Principles for responsible Investment) signatory since 2017.
Our QIRA method and our ESG approach are inspired by the Sustainable Development Goals.
Our voting policy and our energy transition report uses the data provider ISS.
BDL Capital Management has been working with Sustainanalytics since 2018, a world leading provider of ESG data on thousands of companies.
Since 2019, BDL Capital Management has partnered with CDP, the world biggest NGO on disclosure of environmental information by listed companies.
As shareholders, we need information that is comparable across companies and industries. As a result, we support the TCFD initiative that issues recommendations about environmental disclosure.
We want companies to set ambitions goals to reduce their GHG emissions. More specifically we want these goals to be aligned with the goals of the 2015 Paris Agreements to limit the rise of world temperature to well below 2 degrees Celsius by 2050. Consequently, we support the Science Based Target initiative.
The ESG letter
In month, in our ESG letter, we summarize what a company is doing in order to contribute to a more sustainable economy. This is a good way to make things concrete and highlight key initiatives and best practices.
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