Our approach as responsible investor
Since 2007, LFDE has developed its own methodology for ESG analysis of companies, which has been enriched over time. In 2023, LFDE entered a new phase when the company joined forces with LBP AM, its new shareholder. Since January 1, 2025, the ESG analysis of companies in the portfolios has been based on the LBP AM group's proprietary GREaT tool, a methodology in line with LFDE's values as a responsible investor. This approach can be complemented by a qualitative analysis of corporate governance.
A policy of sectoral and normative exclusions
Our responsible investment approach is based first and foremost on a policy of sectoral and normative exclusions. By refusing to finance certain controversial sectors and practices, we avoid the negative social and/or environmental impact of the companies concerned. A common set of exclusions applies to all managed funds, covering, for example, controversial weapons, tobacco and thermal coal, gambling. From a normative point of view, LFDE may exclude companies for which there is an unacceptable risk - that they cause, contribute to or are linked to - particularly serious breaches of the LBP AM Group's fundamental ethical standards such as the United Nations Global Compact, the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights. Stricter exclusion policies apply to our SRI funds, especially our impact funds. Sectors such as alcohol and GMOs may be excluded on this basis.
Find out more about our exclusion policy
Company valuation
Sustainable resource management
The energy transition
Regional development
Analyzing a company on the basis of Environmental, Social and Governance criteria is essential to our investments, both to gain a better understanding of the companies in which we invest, and to better assess the risks associated with them. Our proprietary GREaT analysis methodology, developed by our shareholder LBP AM and the result of several years' research, is based on four pillars: Responsible Governance, Sustainable Resource Management, Energy Transition and Territorial Development. Adapted to the specificities of different asset classes, this analysis method aims to assess companies on two dimensions: the responsibility of their practices and the contribution of their products and services to solving sustainability issues. It can be complemented by a qualitative analysis. The strength of our model lies in :
Proprietary methodologies
We can also draw on the complementary methodologies and exacting expertise developed by our shareholder LBP AM, particularly GREaT. Adapted to the specific features of different asset classes, this SRI analysis method aims to assess companies on two dimensions: the responsibility of their practices and the contribution of their products and services to solving sustainability challenges. Nearly 11,000 issuers have received GREaT quantitative analysis.
SDG contributions
To identify companies that make a positive contribution to the UN Sustainable Development Goals (SDGs). A core methodology within the Echiquier Positive Impact Europe management process, which is based on an in-depth analysis of companies’ products and services and the impact of their CSR initiatives.
Climate transition
To assess the maturity of companies in how they address climate and biodiversity issues. This “Climate & Biodiversity Maturity” methodology is central to the Echiquier Climate & Biodiversity Impact Europe management process.
Responsible practices
To analyse the non-financial rating of the funds and the commitment of the management companies, and to select only those whose approaches seems to us the most rigorous. This “SRI Maturity” methodology has developed from a partnership between our RI research and asset allocation teams.
Beyond the analysis, a shareholder dialogue
Shareholder dialogue is an integral part of our approach as a responsible investor. For all our funds, we aim to vote systematically at shareholders' general meetings, thereby making our contribution to improving corporate governance. For several years now, we have also adopted a shareholder engagement approach, sharing progress on ESG issues with the companies we invest in, and monitoring their progress over time.
In addition, we participate in collaborative engagement initiatives alongside other investors, with a single objective: to support companies in improving their ESG practices! Find out more about our approach in our Voting Policy and Engagement Policy.
Transparency
Transparency is both a challenge and a fundamental requirement. It is crucial that we report on our methodologies and investments with the utmost transparency. We make every effort to share our know-how and insights. We produce clear and precise content. We are in favour of increased transparency on climate-related financial risks, and therefore support the Task Force on Climate-related Financial Disclosures (TCFD). All the documentation we produce is readily accessible on our website.