Our Responsible Approach

Our beliefs

Sharing the value we create with thos most in need has been at the heart of ELEVA Capital's purpose since inception. Our committed philantropic approach is fertile ground to go further. Through our investments, we have an essential role to play in protecting the planet and participating in the emergence of a more just society.

Eric Bendahan, Founder of ELEVA Capital

Founder of ELEVA Capital

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Our beliefs...
Invest in future-proof companies

At our scale, we can amplify our impact on society through our investments. Our goal is to deliver sustainable performance to our clients. We believe that the best way to do this is to invest in future-proof companies. Responsibly managed companies benefit from growth opportunities while managing their risks, both of which are powerful drivers of long-term performance.

Environmental, social and governance (ESG) criteria have financial consequences. We therefore believe that taking them into account in our management and investment process should contribute to the generation of alpha. This is an integral part of our fiduciary duty.

Our approach
A modern approach
In an increasingly demanding regulatory framework, our approach is based on modern and evolving proprietary methodologies. These aim to capture the most material issues for companies today and to identify their main challenges for the years to come. The entire ELEVA Capital management team is involved in this approach, making it relevant and effective.
Supporting companies in their transformation
Not all companies are at the same level of progress towards the sustainability of their model. Contributing to the improvement of ESG practices is an essential facet of our approach as a responsible investor. This takes the form of regular dialogue with management, systematic engagement following our internal analysis and active participation in general meetings. By allocating capital to the most virtuous companies, we also send a signal to others, encouraging them to redouble their efforts.
For us, responsible investment is about seeking performance by investing in companies that thrive over the long term by creating value for all of their 5 stakeholders (Shareholders, Employees, Suppliers, Society, Planet), while minimising their environmental impact. The framework of our approach includes 4 levers of action : Analyse, Select, Engage and Vote.
Sonia Fasolo and Matthieu Détroyat
ESG strategy managers
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Analyse
We have developed a proprietary analysis methodology based on the principle of double materiality*. This approach, in line with the new European regulations, focuses on the most material issues that are likely to have financial consequences.

The heart of our approach is based on the analysis of the relationships of companies with their 5 stakeholders, which are a source of risks and opportunities. It allows to have a 360° vision of the companies in which we invest.
The criteria and the weight of each are differentiated by sector. ELEVA Capital has used a materiality matrix inspired by the SASB (Sustainability Accounting Standards Board) matrix to rank the weight of each criterion within 11 different sectors. This allows us to focus analysis on the most relevant indicators and to eliminate the "noise" caused by too many indicators.
*Impact of the company's activity on its stakeholders (for example CO2 emissions) and impact of non-financial issues on the company (for example climate change)
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Shareholders
  • Quality of management team
  • Quality of board
  • Quality of the relationship with shareholders
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Planet
  • Climate change
  • Energy management
  • Water management & Biodiversity
  • Environmental impact of products
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Employees
  • Quality of HR management
  • Employer brand equity
  • Employees retention
  • Safety and security
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Suppliers
  • Level of risk embedded in the supply chain
  • Supply chain risk management and control
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Civil Society
  • Customers relationship
  • States relationship
  • Local communities relationship
This analysis is carried out internally by all analysts and managers in the investment team, who contribute via their sector expertise. It is comprised of an ESG rating (Environmental, Social and Governance criteria) ranging from 0 to 100, which includes a possible penalty in the case of controversy. It is revised approximately every two years.

The data used for this rating is primarily derived from information published by the companies (accessible directly or via data providers) and our exchanges with them. Additional external sources such as the CDP (https://www.cdp.net), Science Based Targets Initiative (https://sciencebasedtargets.org) or the Glassdoor website (https://www.glassdoor.com) enrich analysis.
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Selection

In our SRI funds, company selection and portfolio construction is based on ESG ratings. We select companies that make sustainability a driver of performance and avoid those that face structural challenges. We believe this is a potential source of long-term performance. For SRI funds, minimum ESG ratings are in place, below which we do not invest. The inclusion of ESG criteria leads to a reduction in the investment universe of these funds.

Some activities or practices are excluded from ELEVA Capital's investment scope. These are formalised in our policy of sectoral and normative exclusions. This is particularly the case for companies in the tobacco sector, companies involved in the manufacture and/or distribution of non-conventional weapons or companies exposed to extreme controversies (violation of the UN Global Compact). ELEVA Capital also has a coal policy.

Be an active owner

Establishing a constructive dialogue on ESG issues with the companies in which we are shareholders is an integral part of our responsibility as investors. We believe in companies that make progress on ESG issues, because they improve their risk management, become more attractive employers, are more resource-efficient and attractive to their consumers, in turn improving their financial performance. They also become investable for a growing number of investors. ESG analysis allows us to identify areas where companies need to make progress. It is the basis for relevant engagement with companies.

Voting at general meetings is an integral part of our responsible approach. It is a unique opportunity to send signals on what we consider acceptable or not in terms of ESG, particularly in terms of governance. Therefore, ELEVA Capital is committed to systematically voting at all general meetings of companies invested in all its funds.

Our commitments
PRI : Principles for Responsible Investment

The PRI is the world's largest responsible investment initiative. It works to understand the stock market implications of environmental, social and governance (ESG) factors and aims to encourage its international network of signatory investors to integrate these factors into their investments and ownership decisions.

Tobacco Free Portfolios

Tobacco Free Portfolio is a non-profit organization that works with the world's leading financial organizations to drive global change toward tobacco-free finance.

CDP : Driving sustainable economies

The CDP is a non-profit organization considered to be the benchmark for environmental reporting with the richest database on corporate and city action.

For further information
To know more about our responsible investment approach ...
Voting and Engagement policy
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ELEVA Capital ESG Annual Report (Article 29 and SFDR)
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Transparency code
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PRI evaluation report
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Coal Policy
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Information related to SFDR regulation and AMF 2020-03 doctrine
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Voting ang engagement report
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