Carmignac launches ESG tracking and analysis system

By Sunniva Kolostyak

Asset manager Carmignac has launched START – its System for Tracking and Analysis of a Responsible Trajectory – aiming to blend human insight and external data to integrate Environmental, Social and Governance (ESG) research into its investment processes.

The firm is combining third-party data sources with in-house human-driven assessment, and START provides formal, structured and forward-looking analysis on each company regarding its responsibility and purpose.

As a result, START produces a baseline ESG rating derived from headline ESG indicators, controversies and impact, mixed with the investment team’s assessments. The solution assists the analysts and portfolio managers in understanding potential ESG risks, while also assessing companies’ positive outcomes for the society and the environment.

Maxime Carmignac, Managing Director overseeing the Responsible Investment team at Carmignac, commented: “We are independent and not constrained by short-term results. This allows us to assess both companies’ current state of play for ESG criteria and future trajectories. START enables us to do so in a disciplined manner and is to become a cornerstone of our investment process. We are confident that our overall ESG approach will help us fulfil our primary mandate, which is to create value for our clients over the long-term.”

START is the result of in-depth work conducted over the past year by the responsible investment team, led by Sandra Crowl, Stewardship Director, to go the extra mile with Carmignac’s responsible investment approach.

“Being active, we believe our duty is to engage with companies and use our shareholder rights to drive them to improve their management of environmental-related risks, their human capital management and their governance,” Carmignac added.

“We are looking forward to empowering our clients by giving them access to our proprietary assessment capabilities through START. Making our process transparent and accessible will help drive impact and create a collaborative approach within the fund management industry.”