Description of the service
Shareholder engagement refers to a set of investor practices aimed at incorporating ESG issues into their shareholder practices (voting rights, dialogue, etc.). EthiFinance mainly supports its clients in their shareholder dialogue activities, aimed at engaging in dialogue with issuers on ESG issues, in order to better understand their approach regarding CSR. Shareholder dialogue also contributes to expressing investors' expectations to companies in terms of transparency and practices. Shareholder dialogue enhances the consideration of ESG criteria in investment decisions by providing qualitative insight into ESG data and allow for impact into investment.
EthiFinance has developed expertise in shareholder dialogue with listed companies of all sizes and geographical locations. EthiFinance has even more significant experience on small and mid-cap companies, as per the DNA of the Group since its creation. EthiFinance adopts a proportionate approach to dialogue. The constructive and transparent approach promoted by the engagement processes conducted by EthiFinance also encourages the progress of companies.
Examples of missions and deliverables
EthiFinance offers three different offers in terms of shareholder dialogue:
- Dedicated engagement
EthiFinance assists investors in the definition and implementation of their engagement processes, whether these are one-off or regular. Thus, EthiFinance consultants can support investors through all stages of an engagement campaign, from the identification of issuers to the engagement report.
- Collective engagement
EthiFinance has developed a collective engagement service allowing several investors to participate in the same engagement process. Thus, investors can increase the impact of their shareholder dialogue activities while pooling the cost. This collective engagement service focuses on the universe of French small and mid caps, the core business of EthiFinance.
- Support for ESG integration in shareholder practices
EthiFinance supports investors in incorporating ESG issues into their shareholder practices. Thus, EthiFinance consultants assist its clients in defining their shareholder engagement and voting policies. These missions can be carried out in several contexts: regulatory compliance (Shareholders' Rights Directive II, SFDR), preparation for the SRI label or even definition of a responsible investment policy.