Our ESG approach

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Our approach to ESG analysis

The funds METROPOLE Gestion manages are subject to a 360 degree corporate analysis procedure that considers three aspects: extra-financial analysis, financial analysis, and balance sheet analysis.

Our analysis procedure is based on a multi-sector, Best-in-class / Best effort approach that encourages companies to improve on the three major non-financial ESG themes.

This is based on a solid methodological framework, developed through our academic collaboration with Université d’Auvergne.

A solid methodological framework

Since 2009, METROPOLE Gestion has been keen to establish a methodological basis independent of the major ESG rating agencies by establishing an academic collaboration with the University of Auvergne in order to produce an in-house company rating system proprietary to METROPOLE Gestion.

1. The frame of reference is the architecture of the rating system. It is organised into 4 orthogonal pillars:







2. Quantitative analysis: data metrics and aggregation
   
   
   • We use an extra-financial database (5,000 companies worldwide), which provides stable data over time, combining official corporate data (annual reports, sustainable development reports) and details of any controversies sourced from press agencies.
   
   
   • Using this data, we build 150 indicators to measure each element of our standards, favoring outcomes over drivers deployed (75% - 25%).
   
   
   • Each pillar is equally weighted.
   
   
   • Best in Class rating: each company is rated in relation to its sector to obtain a Best in Class rating.
   
   
   • Best Effort rating (1 to 5 stars): this takes into account the change in extra-financial rating over the past four years, with additional weighting given to the last year.
   
   
   • Ratings are reviewed annually.
3. Qualitative analysis: the quantitative rating is verified and supplemented by qualitative analysis.
   
   
   • Taking into account any ongoing controversies:
     
     • all controversies regarding stocks held in the portfolio are reported and monitored on a weekly basis.
     • in the case of new companies under consideration, in addition to the quantitative rating, controversies are analysed over the last three years.
   • Analysis of sector-specific risks.
   
   
   • Dialogue with companies through interviews with CSR managers and senior executives (at least once a year for companies in the portfolio), designed to explore in depth the risks identified, detect any risks not identified during the rating process and influence the direction of company strategy.