Sustainability
Integrating Sustainability across the firm and investments
Sustainability
Integrating Sustainability across the firm and investments
Sustainability
Integrating Sustainability across the firm and investments
Sustainability
Chenavari believes that Environmental, Social and Governance (‘ESG’) considerations will increasingly drive economies and markets and that global issues and cross-cutting societal concerns such as climate change have ushered in a new era for responsible investment and corporate social responsibility. The Firm considers ESG as a core enabler for generating long-term, sustainable returns.
Governance
Chenavari is committed to upholding the highest standards of corporate governance and believes that company behaviour and the appropriate management of risk exposures are drivers of long-term performance.
Chenavari’s Governing Body regularly reviews sustainability matters and acts as a sounding board for the implementation of the Firm’s sustainability strategy.
ESG Committee
The ESG Committee oversees the implementation of Chenavari’s Policy of Responsible Investment and Environmental Policy and monitors existing and emerging legislative and regulatory developments in relation to sustainability policies (including for example the EU Sustainable Finance Disclosure Regulation).
ESG Training
Chenavari has undertaken a series of ESG training led by its in-house sustainability expert to enhance investment staff’s ESG integration skills. The Firm has a knowledge centre to help the investment team easily access ESG market intelligence.
Responsible Investment
In keeping with the Firm’s investment philosophy of navigating alpha-generating investment opportunities while dynamically managing risks, Chenavari recognises the importance of sustainability, namely Environmental, Social and Governance (“ESG”) considerations for its investment decisions and active ownership practices.
ESG matters can both drive financial performance and help identify risks which could negatively impact investments. As such, Chenavari is committed to integrating sustainability factors into its investment decision-making process.
Chenavari's Policy of Responsible Investment is available at this link
Policy of Responsible Investment
Chenavari’s Policy of Responsible Investment is intended to set out basic principles and guidelines as well as to promote and enhance the Firm’s culture of responsible investing.
Please follow the link to find out more.
Negative Screening and Exclusions
Chenavari excludes certain sectors, issuers or securities for poor ESG performance based on specific ESG criteria, e.g. avoiding particular products/services or business practices.
Chenavari also uses a materiality threshold (20%) based on revenues directly derived from thermal coal mining or the generation of electricity using coal. When applying the revenue threshold, attention will be paid to forward-looking plans from the entities in question to reduce their dependency on thermal coal operations over time.
For complex situations, the investment teams may refer to the ESG Committee, which deliberates on a case-by-case basis.
ESG Integration
In recent years, the industry has become more aware of methodologies for incorporating sustainability risks into investment research and decision-making. Chenavari acknowledges these developments and continues to refine its process in this area.
EU Sustainable Finance Disclosure Regulation
The Sustainable Finance Disclosure Regulation (“SFDR”) aims to reduce information asymmetries in principal‐agent relationships with regard to the integration of sustainability risks, the consideration of adverse sustainability impacts, the promotion of environmental or social characteristics, and sustainable investment, by requiring financial market participants and financial advisers to make pre‐contractual and ongoing disclosures to end investors when they act as agents of those end investors (principals).
Chenavari's Policy for Responsible Investment discloses specific information regarding our approaches to the integration of sustainability risks.
For more information please follow this link. about the Firm's consideration of adverse sustainability impacts as well as transparency about remuneration policies in relation to the integration of sustainability risks.
Policy of Responsible Investment
In keeping with the Firm’s investment philosophy of navigating alpha-generating investment opportunities while dynamically managing risks, Chenavari recognises the importance of sustainability, namely Environmental, Social and Governance (“ESG”) considerations for its investment decisions and active ownership practices.
ESG matters can both drive financial out-performance and help identify risks which could negatively impact investments. As such, Chenavari is committed to integrating sustainability factors into its investment decision-making process.
Chenavari’s Policy of Responsible Investment is intended to set out basic principles and guidelines as well as to promote and enhance the Firm’s culture of responsible investing.
Chenavari's Policy of Responsible Investment is available at this link.
Negative Screening and
Exclusions
Chenavari excludes certain sectors, issuers or securities for poor ESG performance based on specific ESG criteria, e.g. avoiding particular products/services or business practices.
Chenavari excludes companies whose principal business is directly derived from the production of or trade in controversial weapons (including anti-personnel landmines, cluster weapons, nuclear weapons, and chemical and biological weapons), or the manufacturing of tobacco products.
The Firm maintains absolute avoidance of companies which are known to be involved in the trade of products, services or activities involving pornography or prostitution, human trafficking, sexual violence against women, forced labour or child labour as defined by the International Labour Organisation (ILO) conventions, severe environmental damage, gross corruption, including extortion and bribery.
Chenavari also uses a materiality threshold (30%) based on revenues directly derived from thermal coal mining or the generation of electricity using coal. When applying the revenue threshold, attention will be paid to forward-looking plans from the entities in question to reduce their dependency on thermal coal operations over time.
For complex situations, the investment teams may refer to the ESG Committee, which deliberates on a case-by-case basis.
ESG Integration
In recent years, the industry has become more aware of methodologies for incorporating sustainability risks into investment research and decision-making. Chenavari acknowledges these developments and seeks to refine its process in this area.
As an example, the Lyxor / Chenavari Credit Fund portfolio managers are now able to apply their investment discretion in analysing issuers on both financial as well as non-financial characteristics, including ESG factors or criteria, to identify material risks or opportunities which may impair or enhance an issuer’s ability to service its debt obligations. We have contracted the services of a world leading ESG data provider to empower our portfolio managers with objective independent ESG research.
For private credit investments, we are developing policies and procedures to assist the pre-investment analysis as well as monitoring of relevant sustainability risks during the life of the investments.
EU Sustainable Finance
Disclosure Regulation
The Sustainable Finance Disclosure Regulation (“SFDR”) aims to reduce information asymmetries in principal‐agent relationships with regard to the integration of sustainability risks, the consideration of adverse sustainability impacts, the promotion of environmental or social characteristics, and sustainable investment, by requiring financial market participants and financial advisers to make pre‐contractual and ongoing disclosures to end investors when they act as agents of those end investors (principals).
Chenavari's Policy for Reponsible Investment discloses specific information regarding our approaches to the integration of sustainability risks. Please follow this link for more information about the Firm's consideration of adverse sustainability impacts as well as transparency about remuneration policies in relation to the integration of sustainability risks.
Negative Screening and
Exclusions
Chenavari excludes certain sectors, issuers or securities for poor ESG performance based on specific ESG criteria, e.g. avoiding particular products/services or business practices.
Chenavari excludes companies whose principal business is directly derived from the production of or trade in controversial weapons (including anti-personnel landmines, cluster weapons, nuclear weapons, and chemical and biological weapons), or the manufacturing of tobacco products.
The Firm maintains absolute avoidance of companies which are known to be involved in the trade of products, services or activities involving pornography or prostitution, human trafficking, sexual violence against women, forced labour or child labour as defined by the International Labour Organisation (ILO) conventions, severe environmental damage, gross corruption, including extortion and bribery.
Chenavari also uses a materiality threshold (30%) based on revenues directly derived from thermal coal mining or the generation of electricity using coal. When applying the revenue threshold, attention will be paid to forward-looking plans from the entities in question to reduce their dependency on thermal coal operations over time.
For complex situations, the investment teams may refer to the ESG Committee, which deliberates on a case-by-case basis.
Corporate Social Responsibility
Chenavari has implemented a number of initiatives to support its commitment to Corporate Social Responsibility. These include operational and environmental projects such as renewable energy in its office, recycling schemes, carbon offsetting for staff travel, cycle to work scheme. It’s HR team manages and supports a number of wellbeing programmes available to all staff, many on a confidential basis.
The Firm also has a Social Committee established to encourage social interaction between colleagues, as well as to promote socially responsibility activities at the Firm and to support staff wellbeing.
Chenavari’s Diversity and Inclusion Policy is available at this link.