Responsible investing is (truly) part of Thematics Asset Management’s DNA

Responsible investing is fully integrated across Thematics’ business lines and strategic leadership priorities, from the investment team to client portfolio management, to operations support, and senior management. In order to meet our ambitions and commitment to support our clients’ demand for sustainable thematic investments, we have structured our responsible investing in a unique way we see fit and effective. This is also in line with our core belief that responsible investing is an integral part of our investment philosophy and thinking.

Our model for operationalizing our responsible investing framework is ‘portfolio manager driven-specialist supported’. It means that Portfolio managers own the implementation of RI approaches in each thematic strategy.

They ensure that all ESG-related strategies applicable at each stage of the investment process is followed, from exclusion to ESG integration (they perform their own ESG research and scoring), engagement, and voting. They are supported by our team of ESG and climate specialists who provide the expert guidance and support.

The Responsible Investment Committee

Thematics AM’s Responsible Investment Policy governs the way its responsible investment framework is integrated into its investment process. This applies to all investment products of the company. Governance and oversight is within the remit of the Responsible Investment Committee composed of the Chief Investment Officer, Head of Responsible Investing, ESG Specialist, Climate Specialist, and Head of Compliance. The implementation of all responsible investment strategies across the investment process is carried out by each portfolio manager.

The Responsible Investment Committee is responsible for:

•       •  Defining: As the governing body of its responsible investing framework, the RI Committee is in charge of defining the organization’s responsible investment objectives, strategy, and targets. To support this endeavor, the Committee also assesses necessary investment on capability building, including ESG and climate-focused trainings and other resourcing needs. An annual review is carried out to identify areas for refinement and enhancement integrating regulatory and market developments.
•       •  Monitoring: The Committee meets on a quarterly basis to review the ESG policy implementation across all investment strategies. It also assesses the performance of the funds across all ESG and climate metrics and identify any appropriate actions to be taken - divestment, position re-sizing or targeted engagement with relevant investee companies.
  

Data and Tools

Performance measurement and transparency

As part of our commitment to provide our stakeholders with transparent and consisten sustainability performance data, Thematics AM provides extra-financial (sustainability data) on all its strategies. On a monthly basis, through the funds’ ‘Monthly Factsheet’, the following information is presented:

·     the fund’s contributions to the Environmental and Social objectives of the Sustainable Development Goals (UN-SDG), as assed by third party data provider ISS research. Each company in the portfolio is assessed based on its percentage of revenues derived from SDG contributive, neutral, or obstructive activities;
·      the fund’s exposure to ESG controversies, based on third-party data provider Sustainalytics, as a means to demonstrate how it ensures that the fund does not do any significant harm;
·      weighted average carbon intensity and temperature alignment.

On an annual basis, through the ‘Being Responsible Report’ and funds’ Impact Report, Thematics AM provides the following:

·      the fund’s achievement of its sustainable investment objectives using the Investment Manager’s proprietary sustainable outcome measurement framework;
·      its performance across the mandatory Principal Adverse Impact indicators arketing, and risk and compliance.