At QUAERO CAPITAL, investing responsibly is at the centre of our investment philosophy and process. If you want to know more about investing responsibly at QUAERO CAPITAL, including major achievements at a corporate level and fund specific actions implemented in 2019, please refer to our first “Annual Sustainability Report” by clicking here.
The 4 pillars of responsible investment at QUAERO CAPITAL
We take steps to avoid companies that are exposed to highly controversial weapons or are to be shown to be in severe and systemic breach of international norms. We don’t believe these companies pursue a sustainable strategy, and therefore would prefer to seek long-term performance opportunities elsewhere.
We believe that our clients will benefit from the integration of ESG criteria into our investment research, which will ultimately enhance their investment performance and success. Across our funds, we are convinced that integrating ESG factors into our financial analysis will support making better investment decisions for our clients. This is not just a question of ethics. By integrating these factors, we gain a better understanding of operational, financial and reputational risks for a firm as well as business opportunities. Additionally, ESG insights contribute to reducing negative surprises with target companies and can provide us with increased confidence about the long-term prospects for a business. This enables a better understanding of the risk / return profile of an investment which results in better portfolio construction.
As a responsible investor, we also believe that we can drive positive change by providing feedback to companies’ management teams, whether through direct dialogue or through our votes. Across our funds, the investment teams spend thousands of hours every year meeting companies’ management of both current and prospective holdings, providing us with an opportunity, when feasible, to press certain issues and encourage greater transparency. We believe this is much more powerful route to sustainable corporate behaviour, as it focuses on positive engagement and ultimately influence on these key issues. Additionally, we take our role as stewards of capital seriously and have implemented a voting policy across our public equity funds.
We continue to look for opportunities to align the interests of our investors with the transformation taking place in business and industry as a result of growing attention on environmental and social concerns as highlighted by the Sustainable Development Goals (SDGs). We see great opportunity in infrastructure assets where there is growing demand, for example in renewable energy, communication infrastructure and health facilities.
We also offer an Accessible Clean Energy investment strategy, which aims to maximise total return by investing in companies operating across the renewable energy value chain, offering investors an alternative energy sector allocation.
United Nations Principles for Responsible Investment (UN PRI)
In 2015 QUAERO CAPITAL became a signatory to the UN PRI (United Nations Principles for Responsible Investment) to demonstrate our commitment to responsible investment. The PRI acts in the long-term interests of its signatories, of the financial markets and economies in which they operate and ultimately of the environment and society.
QUAERO CAPITAL scored ‘A+’ for Strategy & Governance in the 2020 PRI annual assessment. For active ownership and for the incorporation of ESG in listed equities, QUAERO CAPITAL has achieved ‘A’. The full assessment report can be provided upon request.
Institutional Investors Group on Climate Change (IIGCC)
QUAERO CAPITAL is a member of the IIGCC (institutional Investors Group on Climate Change) as we look to influence corporations to address long term risks associated with climate change.
The IIGCC is the pre-eminent European forum for investors to collaborate on climate change and the voice for investors acting for a prosperous, low carbon future.
Carbon Disclosure Project (CDP)
QUAERO CAPITAL is a signatory to the CDP, as we look to influence companies to disclose their carbon footprint and address risks associated with climate change. The platform also provides us with a wealth of environmental data reported by companies.
CDP is a not-for-profit charity that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. Over the past 15 years they have a created a system that has resulted in unparalleled engagement on environmental issues worldwide.
We strengthen our commitment with the creation of a dedicated ESG team of two analysts who work alongside the investment teams assisting in the integration of ESG criteria into research analysis, structuring our dialogue with company management, and spearheading further developments in ESG policy.
We also launched an ESG Committee, which has oversight and responsibility for the development and integration of the ESG policy and for driving progress. As the industry continues to evolve, with companies reporting more ESG data and client expectations changing, we’ll adapt and develop our policies and approaches in order to continue to deliver financial return for our clients in a responsible and impactful way.
Quaero Capital (France) SAS complies with article 173 of the French Energy Transition for Green Growth law of 17 August 2015 (see information document).