2nd Quarter 2024: Our active stewardship illustrated

Published on
11 September 2024
Read time
1 minute(s) read

As a long-term investor, we engage in regular dialogue with the companies in which we invest to encourage them to improve their practices for taking environmental, social and governance (ESG) criteria into account. Find out how our active approach to stewardship was borne out in Q2 2024.

11Engagements held
99%of meetings voted
62%of meetings where Carmignac voted against management at least once*

*This data refers to the number of meetings where Carmignac took a vote position against the recommendation of the board. In practice, this refers to votes cast against management-led resolutions and, in most cases, votes cast for shareholder-led resolutions (unless the shareholder-led resolution is supported by management).

Carmignac is committed to aligning its dialogue strategy with five types of engagement: engagement on ESG ratings, thematic engagement, impact engagement, engagement on controversial behaviour, and engagement on proxy voting decisions.

Over the second quarter of 2024, we initiated dialogue with investee companies 11 times and covered two types of engagement.
Over the second quarter 2024, Carmignac voted against the management of our investee companies at least once at 62% of meetings voted.

Find out how we specifically engaged with an investee company during the second quarter 2024.

Edenred SE

Sector: Financials
Region: France

The company is an equity holding in our funds1.

The company has been involved in a number of controversies relating to anti-trust and auction rigging. We engaged with them to understand how they managed the controversies and whether they strengthened their controls following these incidents. We also used this opportunity to ask some general ESG questions.

In May 2024, we held a videocall with the company’s investor relations representative.

The company’s controversies relate to historic events in the period of 2019-2022, relating to their paper-based solutions. Given that they have now switched to digital solutions, they do not anticipate similar issues occurring. They also explained to us that they began reviewing their tender process by hiring an external firm to provide them with recommendations, but the conclusions have not been finalised yet. We welcome the company’s commitment to address this issue, but note that as they operate a decentralized business model, changes may be difficult to implement.

We reviewed the company’s ESG approach more widely and we acknowledge their commitment and actions to improve employee retention by putting targets for management to reduce turnover rate and their strategy to reduce plastic waste by implementing cardless alternatives for customers.

Following the engagement with the company, we modified our START rating under the governance pillar from B to C. This was done to reflect the controversies the company has faced, and the fact that the redesign of the tender process has not been finalised yet. We will continue to monitor the company and engage where necessary.

1As of 30th June 2024: Carmignac Portfolio Grande Europe, Carmignac Portfolio Human Expérience, Carmignac Portfolio Patrimoine Europe, FP Carmignac European Leaders.

To find out more on our responsible investment philosophy, please visit our Sustainable Investment section:

Sustainable Investment

Share

Related articles

Sustainable investing • 10 July 2024 • English

Carmignac’s Article 9 funds: a sustainable investment?

3 minute(s) read
Find out more
Sustainable investing • 15 October 2021 • English

Carmignac receives the ‘Label ISR’ for five additional funds

1 minute(s) read
Find out more
All analysis

This is a marketing communication. This document is intended for professional clients.

This material may not be reproduced, in whole or in part, without prior authorisation from the Management Company. This material does not constitute a subscription offer, nor does it constitute investment advice. This material is not intended to provide, and should not be relied on for, accounting, legal or tax advice. This material has been provided to you for informational purposes only and may not be relied upon by you in evaluating the merits of investing in any securities or interests referred to herein or for any other purposes. The information contained in this material may be partial information and may be modified without prior notice. They are expressed as of the date of writing and are derived from proprietary and non-proprietary sources deemed by Carmignac to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by Carmignac, its officers, employees, or agents. Reference to certain securities and financial instruments is for illustrative purposes to highlight stocks that are or have been included in the portfolios of funds in the Carmignac range. This is not intended to promote direct investment in those instruments, nor does it constitute investment advice. The Management Company is not subject to prohibition on trading in these instruments prior to issuing any communication. The portfolios of Carmignac funds may change without previous notice. UK: This document was prepared by Carmignac Gestion, Carmignac UK Ltd or Carmignac Gestion Luxembourg and is being distributed in the UK by Carmignac Gestion Luxembourg. In Switzerland: the prospectus, KIIDs and annual report are available at www.carmignac.ch, or through our representative in Switzerland, CACEIS (Switzerland), S.A., Route de Signy 35, CH-1260 Nyon. The paying agent is CACEIS Bank, Paris, succursale de Nyon/Suisse, Route de Signy 35, 1260 Nyon.Copyright: The data published in this presentation are the exclusive property of their owners, as mentioned on each page.

CARMIGNAC GESTION 24, place Vendôme - F-75001 Paris - Tél : (+33) 01 42 86 53 35 Investment management company approved by the AMF Public limited company with share capital of € 13,500,000 - RCS Paris B 349 501 676

CARMIGNAC GESTION Luxembourg - City Link - 7, rue de la Chapelle - L-1325 Luxembourg - Tel : (+352) 46 70 60 1 Subsidiary of Carmignac Gestion - Investment fund management company approved by the CSSF Public limited company with share capital of € 23,000,000 - RCS Luxembourg B 67 549