Vigeo Eiris
Find out more about Responsible Investment (RI) and Corporate Social Responsibility (CSR).
“Eiris” comes from an acronym for “ethical investment research services” , but EIRIS evolved to offer much broader ESG research in addition to ethical screening.
In December 2015, Vigeo and EIRIS merged to create the Vigeo Eiris agency.
Less than 1% of the companies rated by Vigeo Eiris Rating are clients of Vigeo Eiris Enterprise
By renewing the agreement in 2015 regarding the capital raised, our shareholders indicated their support for the creation of a global extra-financial analysis agency which aims to promote market standards through a production which combines professionalism, quality and R&D.
The theoretical potential for conflict of interests is not ignored.
In order to avoid conflict, Vigeo Eiris limits the participation of any shareholders to 25% and to 2% for corporates that are not financial actors. At present, the participation of each company that is not a financial actor is between 0.22% and 0.95% and the participation of each financial actor is between 0.04% and 10.01%.
The Executive Board is composed of three Boards (reflecting the capital structure of the shareholder stakeholder groups i.e. companies, financial actors, civil society), with three members each, regardless of the level of capital contribution, and 3 independent Directors. Each Board has been given 2 seats on the Executive Board. Shareholders that have at least 9% benefit from an additional seat on the Executive Board.
Finally, Vigeo Eiris has established a Scientific Committee, composed of independent university academics and experts, contributing to the independence, professionalism and ethics of the company. The Scientific Committee advises and guides the agency as regards its methodological approaches and ensures the respect of these measures in products created for clients.
Internally, staff, particularly the Information Department, are attentive to the evolution of the standards and norms created by international organisations, in order to adapt our frame of references if necessary.
Vigeo Eiris has based its reference framework on these principles.
They can be consulted here.
“development which meets the needs of the present without compromising the ability of future generations to meet their own needs, and especially the most basic needs of the world’s poor […].”
The expression ‘sustainable development’ was coined in 1992 at the Earth Summit in Rio.
Such factors can alter a company’s reputation, development and its attractiveness in the market if they are not managed effectively.
Vigeo Eiris defines corporate social responsibility as a managerial commitment according to which the rights, interests and expectations of stakeholders are considered, and which aims at the continuous improvement of its performance and risk management.
Vigeo Eiris proposes a whole range of services and tools for the signatories of the PRI, enabling them to define and deploy a process for responsible investment.
PRI website: unpri.org
Vigeo Eiris Rating is member of the Global Compact and has developed a specific product for investors to identify companies that comply or do not comply with the principles of the UN Global Impact.
For example, it is possible to:
+ invest all or part of a portfolio in RI,
+ manage assets actively or passively,
+ use a formula,
+ define a management approach based on proprietary criteria.
According this same study, the biggest market remains Europe (63.7%) followed by the United States. Those two make the better progression (76%) between 2012 and 2014 against 55% in Europe.
GSIA study
In addition, a growing number of international finance players adhere to the Responsible Investment Principles based on the view that environmental, social and governance risks are likely to influence the valorisation of their investments and that it is part of their fiduciary responsibility. This initiative, launched in 2006, has gained more than 1400 international signatories from more than 50 countries, representing $59 billion of assets.
PRI : unpri.org
Brochure PRI
For more information, please consult:
+ GSIA : gsi-alliance.org
+ Novethic : novethic.fr
+ Eurosif : eurosif.org
In the long term, integrating ESG analytical elements into portfolio management should theoretically allow for better risk-adjusted performance insofar as such integration gives a better appreciation of the risks and opportunities associated with each investment.
+ from the company: in the first instance, analysts consult all publicly available documents (annual reports, sustainable development reports, press releases) before systematically contacting the company for further information,
+ from stakeholders: analysts rely on field actors and observers, such as trade unions, NGOs and international organisations, to cross-check the information received from the companies.
In its analysis process Vigeo Eiris does not include information from sources that cannot be traced or are given by non-identifiable stakeholders. As a consequence, non-referenced oral communications or anonymous letters sent to the agency are not taken into account.
The first such label was created by Novethic in 2009. Until 2016, this label was given each year to more than a hundred European funds integrating ESG criteria in their financial management.
The ISR Novethic Label
A second label, the FNG label, was created in 2014. As a result of a strategic partnership between the GermanSIF and Novethic this label aims at promoting and rewarding funds that integrate ESG criteria in German-speaking countries. This label was given for the first time in 2015.
The FNG Label
The first public SRI label was created in France in 2016. Announced on September 28th , 2015 by the French Minister of Finance during the opening day of the French SRI Week, this label was officially implemented when the decree and its order were enacted on January 8, 2016.
The requirements of this label, as well as its allocation procedures, are defined by public authorities.
Read more about the Public ISR Label in France
To know more: novethic.fr
