We believe that a focus on long-term responsible investing is key to delivering lasting value, meeting the evolving needs of our clients, and reinforcing our commitment to active ownership.
OUR SRI PRINCIPLES
Pragmatism with conviction
Sustainable long-term value creation demands adaptation. As sustainability issues – including climate change – continue to evolve, so does our SRI framework.
Independently sustainable
Two centuries of independence give us the freedom to think and act for the long term – aligning our decisions, at every level, with the investment horizons of our clients.
Acting on our responsibility
We engage directly with companies on both financial and non-financial performance. That conviction runs through every investment decision and every client partnership.
Being adaptive to change
Responsible investing is not static. By identifying and measuring the issues that matter most throughout the investment process, we protect against downside risk and capture long-term opportunity for our clients.
PUTTING OUR PRINCIPLES INTO PRACTICE
We are committed to supporting the global goal of reaching net zero greenhouse gas emissions by 2050 or sooner.
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We strive to continually innovate and build on our stewardship framework.
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Our effort to respect internationally recognised human rights across our investments.
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We use our voting rights to help steer company decisions toward long-term stability.
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INTEGRATING ESG INTO OUR INVESTMENT PROCESS
To deliver on our commitment to responsible and sustainable investment, our professionals:
- Exclude companies fundamentally inconsistent with sustainability principles, or those that pose material financial risk due to social or environmental factors.
- Integrate Environmental, Social and Governance (ESG) considerations throughout the investment process.
- Engage with companies and stakeholders to improve ESG practices and support better long-term capital allocation.
WHAT WE LOOK FOR
- A holistic view of performance – financial and extra-financial, quantitative and qualitative.
- Research that guides our portfolio managers' direct engagement with companies.
- An understanding of how ESG issues can affect a firm's long-term value.
- Coverage across the full range of ESG factors, including governance, resource management, energy efficiency and human capital.
WHAT WE DO
- Source, analyse and engage on extra-financial information.
- Integrate material ESG and financial considerations into research, investment processes and portfolio construction.
- Hold a UN PRI 5-star rating.
- Apply the global standard for proxy voting through ISS.
INTEGRATING SUSTAINABILITY RISKS
Where relevant to the investment strategy, sustainability risks are integrated into our investment process through two primary mechanisms: ESG risk ratings, incorporated as part of our ESG integration approach, and the application of our exclusion criteria. Both are detailed in the sections below.
CONSIDERATION OF PRINCIPAL ADVERSE SUSTAINABILITY IMPACTS
Sustainable Investment Methodology
IDENTIFICATION AND ASSESSMENT
We consider the principal adverse impacts of our investment decisions on sustainability factors. Through our SRI strategy, we identify, prioritise and monitor the adverse impacts that companies have on sustainability factors – including climate, environment, resource use, labour and human rights, and business ethics.
ACTIONS TAKEN
To identify and monitor adverse sustainability impacts across our investment universe, we apply our holistic SRI strategy, built on four complementary pillars: Exclusion, Active Ownership, ESG Integration and Climate Policy.
ADHERENCE TO INTERNATIONAL INITIATIVES
As a signatory of the UN Principles for Responsible Investment (UNPRI) since 2010, we act accordingly to integrate and promote the internationally recognised principles for responsible finance.
We support the 10 principles of the United Nations Global Compact (UNGC) relating to human rights, labour law, the environment and the fight against corruption. We are committed to the promotion and development of sustainable finance, in particular through our partnership with the associations Swiss Sustainable Finance (SSF) and Sustainable Finance Geneva (SFG).
We are also a signatory of CDP (formerly the Carbon Disclosure Project), and supporter of the Task Force on Climate-related Financial Disclosure (TCFD). We collaborate closely with initiatives such as the Transition Pathway Initiative and Climate Action 100+.
OUR SRI STRATEGY IS CENTRED ON FOUR COMPLEMENTARY APPROACHES
1. EXCLUSION
1. EXCLUSION
Also known as negative screening, exclusion is traditionally considered as one of the primary Sustainable and Responsible investment (SRI) approaches. Some activities, products or services are deemed "controversial' when they pose major and global risks to the environment and the society. Indirectly, such activities also expose investors to severe financial and reputation risks.
Whilst we favour inclusion over exclusion, in line with our values and ESG beliefs, we apply restrictions to sectors and companies involved in controversial activities and facing critical ethical, social and environmental challenges. We also closely monitor ESG-related controversies and sensitive incidents that companies may face in the course of their business activities. Company failures to respond appropriately to controversies may trigger divestment.
In this context, Mirabaud has specific sector guidelines and business restrictions that seek to address those issues. These are:
CONTROVERSIAL WEAPONS
Companies involved in the dedicated research, development or manufacture of controversial weapons – defined as those causing harm and suffering and subject to international conventions and embargoes.
TOBACCO
Companies directly involved in the production of tobacco industry – constituting more than 5% of revenue.
THERMAL COAL
Companies deriving more than 10% of revenues from thermal coal mining.
2. ACTIVE OWNERSHIP
2. ACTIVE OWNERSHIP
We believe active ownership is a highly effective approach to contribute to good corporate governance and thereby enhances the long term economic and societal value of companies over time. As stewards of our clients' assets, we aim to use our active voice and enter into dialogue with companies on ESG matters to protect and increase the value of our assets. Such dialogue can also enhance our understanding of a company's sustainability, which can be fed back into investment processes.
As active, high conviction investors, our portfolio managers always take a dynamic approach to evaluating and interacting with companies to encourage best practices.
Our investment professionals perform three complementary types of engagement activities.
COMPANY ESG DIALOGUE
An informed, regular dialogue, through which the investment teams understand a company's corporate responsibility policy and identify their exposure to ESG risks and opportunities.
ADDRESSING MATERIAL ESG ISSUES
Dialogue and engagement on the adoption of best practices on material ESG issues we believe may ultimately benefit the companies, our clients and wider sustainability challenges.
COLLECTIVE ENGAGEMENT
We participate in collaborative engagement initiatives, which are aimed at mitigating investment risks, improving practices and seeking greater disclosure and transparency of information.
3. ESG INTEGRATION
3. ESG INTEGRATION
ESG integration is core to our investment activities and reflections. We explicitly interweave relevant and material ESG considerations and financial considerations into investment processes, portfolio construction and research.
More precisely, we aim to proceed to an in-depth ESG analysis of companies we manage in funds and mandates, or recommend for investment to our clients. ESG materiality is at the core of our approach. Financially material ESG factors are factors that could have a significant impact on a company's operations and value drivers, such as revenue growth, margins and risk. We want to understand what material ESG risks companies are facing and how they concretely respond to these risks and opportunities.
Our analysis draws from proprietary internal research we supplement with research from third party data providers.
We apply additional exclusions in specific investment strategies and upon client request.
4. CLIMATE CHANGE
4. CLIMATE CHANGE
Climate change challenges induces medium to long-term risks, with a complex quantification of impacts on economic and financial activities. Taking advantage of our role as a financial institution, at Mirabaud, we aspire to identity and manage the impact of climate related risks on our clients' assets. Climate Change considerations are a core dimension of our SRI efforts and as such, we are signatories of the Climate Action 100+, an investor initiative to ensure the world's largest corporate greenhouse gas emitters take necessary action on climate change.
IMPACT INVESTING
In selective private equity strategies, we actively place capital with companies that are seeking sustainable and achievable outcomes.
Impact investing can be seen as an evolution of responsible investing. In addition to integrating environmental, social and governance (ESG) criteria, and excluding certain assets from portfolios, Impact Investing aims at making investments that deliver positive financial returns and a benefit to society at the same time.
Impact investing must have clear, demonstrable and, most of all, measurable objectives.
APPLICATION OF MIRABAUD’S SRI APPROACH TO VARIOUS INVESTMENT STRATEGIES
Visit our legal disclaimer page to find out how our ESG strategy is applied to the various investment strategies through our Transparency Codes.
For our private assets funds:
Mirabaud Private Assets SCA SICAV-SIF – Mirabaud Grand Paris please find the sustainable Investment thesis here.
Mirabaud Private Capital SCA SICAV-SIF – Mirabaud Lifestyle Impact & Innovation please find the ESG protocol here.
Visit our Group’s CSR webpage or contact us to learn more about our Corporate Social Responsibility strategy and our Responsible Investing approach.
