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 | Sustainable development | |
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| | Cheuvreux, a socially responsible investment research | |
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In 2005, Cheuvreux, Calyon's equity brokerage and research subsidiary, introduced a socially responsible dimension to its European financial research. By giving itself the resources to take into consideration extra-financial criteria, Cheuvreux has become even more exacting in its research.
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 Innovative approach
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Cheuvreux frequently wins awards for the quality and independence of its research. With some 100 analysts based in seven different countries across Europe, tracking nearly 800 stocks and organised by country and sector, Cheuvreux is able to provide institutional clients with both local and pan-European perspectives on investment opportunities.
Cheuvreux developed its socially responsible research in 2005, which is entirely integrated within "conventional" financial analysis. Its analysts are required to identify Sustainable & Responsible Investment (SRI) issues and challenges facing each company they cover. This extra-financial analysis assesses companies' commitments, policies and performances in terms of the social, environmental and corporate governance aspects of their operations.
The standard of our SRI analysis is reflected in the fact that we integrate the stakeholders' point of view and systematically consult experts and regulatory bodies on the issues considered. This unique approach, which has been designed to assist investors in grasping and mastering the new financial paradigm of the 21st century, has been recognised in 2006 by Thomson Extel.
Extensive SRI research | |
"Extending the horizon of 'conventional' research to include extra-financial considerations is of fundamental importance. In its analysis, SRI research takes into account new criteria such as companies' social and environmental performances, which have now become indispensable indicators in identifying tomorrow's leadership values," explains Stéphane Voisin, Head of Sustainable & Responsible Investment.
There are three aspects to the SRI approach taken by Cheuvreux.
- "Social Responsibility" analysis is designed for socially responsible or sustainable development funds and investors, a fast-growing category in Europe. It breaks with multi-criteria extra-financial rating systems to focus on the most significant sustainability issues via a specific matrix applied by sector and comprised of the following ten aspects: governance, regulations, environment, climate change, health, labour related, social, suppliers, customers and ethics.
- "Extra-financial Risk" analysis seeks to identify and assess the major sustainable development challenges for each sector that are the most likely to impact a company's performance and stock market valuation. These include renewable energy sources for the energy sector, bio-fuels for the oil industry, public heath for the chemical industry, etc. This research is intended for all investors and is increasingly taken into account by hedge funds, which appreciate our ability to identify the new risks of which the market is not always aware.
- "Sustainability players" research is a new approach to "products" which makes it possible to identify, assess and cover companies whose technology, products and services best meet the challenges of sustainable development. This research takes into account ten subjects including renewable energy sources, bio-fuels, energy yields, transport, pollution, water and waste management, recycling, safety, health and education. This effort was stepped up in 2006 with the arrival of sustainable development specialists.
Regular publications | |
Cheuvreux provides its clients with many reports on a variety of subjects in a variety of formats.
- Thematic reports present extensive analysis of the major challenges and trends in sustainable development by sector. Twelve reports have been published in 2006 (in particular 'Environmental Liabilities' in June 2006).
- Weekly SRI specific notes cover topics of special interest or individual stocks, deciphering SRI news and covering new companies (in particularly with respect to IPOs).
- Daily SRI flash analyses include "Sustainability" reports and "Corporate Governance" reports analysing company news from these two specific angles.
- Carbon research reports, among the most extensive in Europe, are greatly appreciated by investors and include notably 'Carbon Focus', an educational report on carbon market mechanisms, and 'Carbon Impact', which provides an assessment of the impact of carbon emissions in seven sectors (electrical power, energy, fuels, cement, oil, refineries and paper) and covers 28 companies.
Numerous conferences on major SRI issues | |
Throughout the year Cheuvreux organises conferences and discussions on the major SRI issues featuring speakers from companies, industry experts and the various stakeholders involved and providing an opportunity for individual meetings with French and other European companies.
The April 2006 Carbon Conference was a big success, bringing together scientists, members of the European Commission and around 100 investors for presentations on different aspects of the carbon market. Encouraged by this success, Cheuvreux has already scheduled a second conference for January 2007.
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