November 18th 2020
The French SRI Label Committee thus underlines the impact of the shareholders’ engagement strategy as a responsible investment approach. For Denis Branche, Deputy CEO of Phitrust, “Obtaining this label is a recognition of the efficiency of the shareholder engagement strategy carried out by Phitrust for more than 15 years. We play an essential role as an alert launcher. We act concretely on the way companies are governed and challenge their strategic decisions and their environmental and social practices (ESG). »
> The first shareholder engagement fund to obtain the French SRI label (among 514 accreditated funds)
The PAI France Sicav clearly meets the objective of funds benefiting from this public label “Acting for a more responsible world”. It was obtained thanks to:
> Its benchmark expertise in engagement, at the strategic level, with the executives and chairmen of the boards of directors of the CAC40 companies;
> A clearly defined engagement strategy:
> a. Acting on the strategic governance of companies: its quality conditions the company’s ability to effectively initiate the transition of its business model, while respecting the balance between the various parties involved with the company. It guarantees that social and environmental issues are properly taken into account.
> b. Strong principles of action to run a responsible exercise of shareholders’ engagement (a longterm holding of shares – no lending of shares – direct, regular and documented dialogue before launching any public action)
> A unique internal qualitative database that gathers all the engagement initiatives carried out by Phitrust since 2003, and the responses obtained from companies ;
> A proven management process recently enriched thanks to the use of an artificial intelligence system developed internally, designed thanks to this database. It enables the most decisive ESG criteria to be defined and facilitates the trade-offs made by the management team.
> Bringing together investors, particularly institutional investors, to develop an independent shareholder’s engagement pool.
In 2020, two measures requiring investors to publicly report on their commitment policies and the exercise of their voting rights came into force: the European directive on shareholder rights and the Pacte law in France. “Phitrust’s challenge is clear: we must involve the stakeholders concerned, and in particular these institutional investors, to invest in our Sicav in order to develop a solid and independent pole of shareholder’s engagement. In only one purpose: in front of social and climate stakes, to promote a vision of the company as a collective object and to support the environmental and social transition of companies.” said Olivier de Guerre, Chairman of Phitrust.
Since its creation in 2003, Phitrust has been investing in order to act with large listed companies so that they improve their E, S, and G practices (Phitrust Active Investors) – and with innovative social enterprises to give them the financial and human resources to change scale and deploy their impact (Phitrust Partenaires).
Two activities, one mission: acting as a shareholder engaged for impact.
> The decisions of large companies on the allocation of the wealth created and the use of capital in the economy have an impact well beyond their scope. They have become key players in finding solutions to social and environmental challenges. By mobilizing institutional investors, Phitrust fully exercises its role as a committed, constructive and demanding shareholder. With a single objective: to alert to the risks and to encourage them in changing their business models.With more than 15 years of experience and direct relations with the managers of large companies, Phitrust is the only independent management company to have filed more than 45 resolutions in AGMs.
> By mobilizing private and institutional investors towards innovative, committed and inclusive entrepreneurial business projects, Phitrust opens a new space between private equity and philanthropy: beyond the financial contribution, we seek to create around entrepreneurs a network of experts and committed investors who will accompany them over the long term in order to leverage their impact for society. The economic profitability of their model is a measure of their sustainability. Patient capital, support and partnerships are an integral part of our business to build an economy that integrates the environmental and inclusion issues without setting them against each other. More than 30 social enterprises are supported by our teams, including Simplon, Lita, LemonTri, Alenvi, La Varappe,…