Our approach to responsible investment
Responsibility is embedded in everything we do, starting with our investment framework.
The right thing to do
Responsibility goes hand-in-hand with a long-term, partnership approach. It means having a sense of responsibility and integrity not only towards the present generation but also to future generations – and to the real economy and the wider world. This is true sustainable thinking.
We are convinced that Environmental, Social and Governance (ESG) considerations can help us make better long-term investment decisions for our clients.
We believe in responsible capitalism and take an enlarged view of the economy and its interactions with civil society and the natural environment.
We are committed to integrating material ESG criteria in our investment processes and ownership practices with a view to enhance returns and/or mitigate risks.
We embed ESG in our risk management and reporting tools in order to maintain high standards of transparency and accountability.
How are ESG risks integrated into fundamental research and day-to-day investment decisions?
Pictet Asset Management employees share their involvement in making responsible investment decisions.
Pictet Asset Management, November 2019
a Few ESG actions we have undertaken
Controversial weapons: a call to index providers
Laurent Ramsey, Managing Partner and CEO
October 2019
Our commitment to responsible investing
A few key facts
[1] as at 31.03.2020
Our approach to responsible investing
Our approach to responsible investing can be summarised in five key points:
- We incorporate ESG factors into all our investment processes
All of our active long-only equity and fixed-income investment strategies integrate ESG considerations. - We systematically exercise voting rights
Leveraging our power as investors to achieve positive change, we systematically exercise our voting rights in the best interests of our clients. - We engage with companies and governments on ESG issues
We engage directly with corporate boards and sovereign issuers so as to improve ESG practices, which we believe will lead to stronger long-term performance. - We act as stewards of responsible investing
We are committed advocates of responsible investing and play an active role in organisations that promote responsible finance and sustainable investments. - We are transparent with clients on our ESG actions
We believe that our transparency differentiates us from the competition. In our reports, ESG characteristics are measured at a portfolio level and compared with the benchmark. Our Impact Reports provide additional data on our environmental impact.
Our responsible investment strategies
Today, all our active long-only equity and fixed income investment strategies incorporate ESG considerations.
All our portfolio managers integrate ESG factors when making investment decisions.
For investors that want to go further, our sustainable strategies focus on companies with stronger governance, and cleaner operations and products.
And we have a range of thematic strategies that invest in companies helping solve environmental and social challenges such as water scarcity and climate change.
Not only ESG helps us make better investment decisions for our clients, we also take a responsible approach as we think it is the right thing to do.
Related articles
Controversial weapons: a call to index providers
Laurent Ramsey, Managing Partner and CEO
October 2019
Responsible investment: the evidence stacks up
Sébastien Eisinger, Managing Partner, Head of Investments
August 2018
Proxy voting
May 2020
The link between defensive stocks and ESG
Laurent Nguyen, Head of Quest Equities, Gabriele Susinno, Senior Client Portfolio Manager
August 2019
Investors: the new guardians of the environment
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Demystifying sustainable investing
April 2019
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This document is used for informational purposes only and does not constitute, on Pictet Asset Management part, an offer to buy or sell solicitation or investment advice. It has been established on the basis of data, projections, forecasts, anticipations and hypothesis which are subjective. Its analysis and conclusions are the expression of an opinion, based on available data at a specific date. The effective evolution of the economic variables and values of the financial markets could be significantly different from the indications communicated in this document.
Information, opinions and estimates contained in this document reflect a judgment at the original date of publication and are subject to change without notice. Pictet Asset Management has not taken any steps to ensure that the securities referred to in this document are suitable for any particular investor and this document is not to be relied upon in substitution for the exercise of independent judgment. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future. Before making any investment decision, investors are recommended to ascertain if this investment is suitable for them in light of their financial knowledge and experience, investment goals and financial situation, or to obtain specific advice from an industry professional.
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For US investors, Shares sold in the United States or to US Persons will only be sold in private placements to accredited investors pursuant to exemptions from SEC registration under the Section 4(2) and Regulation D private placement exemptions under the 1933 Act and qualified clients as defined under the 1940 Act. The Shares of the Pictet funds have not been registered under the 1933 Act and may not, except in transactions which do not violate United States securities laws, be directly or indirectly offered or sold in the United States or to any US Person. The Management Fund Companies of the Pictet Group will not be registered under the 1940 Act.
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