Carmignac launches its ESG proprietary research system with a focus on trajectory and outcomes

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Today Carmignac announces the launch of START (System for Tracking and Analysis of a Responsible Trajectory). This interactive proprietary research system blends human insight and differentiated external data to systematically integrate Environmental, Social and Governance (ESG) research into the investment process for all Carmignac’s Funds.

START is the result of in-depth work conducted over the past year by the Responsible Investment team, led by Sandra Crowl, Stewardship Director, to go the extra mile with Carmignac’s responsible investment approach.

Maxime Carmignac, Managing Director overseeing the Responsible Investment team, says: “We are independent and not constrained by short-term results. This allows us to assess both companies’ current state of play for ESG criteria and future trajectories. START enables us to do so in a disciplined manner and is to become a cornerstone of our investment process. We are confident that our overall ESG approach will help us fulfil our primary mandate, which is to create value for our clients over the long-term.

By combining a wide range of third-party data sources with in-house human-driven assessment, START provides formal, structured and forward-looking analysis on each company regarding its responsibility and purpose. This produces both a baseline ESG rating derived from information that is financially material - headline ESG indicators, controversies and impact - and a rating reflecting the Investment team’s assessment based on their in-depth knowledge of companies and industries. START assists the Analysts and Portfolio Managers in understanding potential ESG risks, while also assessing companies’ positive outcomes for the society and the environment.

Maxime Carmignac concludes: “Being active, we believe our duty is to engage with companies and use our shareholder rights to drive them to improve their management of environmental-related risks, their human capital management and their governance. We are looking forward to empowering our clients by giving them access to our proprietary assessment capabilities through START. Making our process transparent and accessible will help drive impact and create a collaborative approach within the fund management industry.