Our non-financial analysis method

We created the proprietary GREaT analysis method in response to the wishes expressed by our clients to give meaning to their investments by addressing current social and environmental challenges. GREaT defines the whole of our research and asset management philosophy. 

GREaT: a unique and demanding approach 

Our SRI philosophy focuses on four criteria: responsible Governance, sustainable management of natural and human Resources, the Energy and economic transition, and development of Local and Regional Territories. 

Our constantly-expanded GREaT matrix covers all asset classes and is used to analyse 9,000 issuers automatically and consistently. Thanks to GREaT, we can dissect the practices of all our investment targets from an ESG perspective, and in their regions of establishment, which is a strong marker of La Banque Postale’s corporate citizenship DNA. 

Promote responsible governance

We examine the composition of decision-making and supervisory bodies to ensure they are made up of active, varying, competent and independent profiles, which encourages high-quality deliberations. Executive compensation should be contingent on value creation and not encourage excessive risk-taking. Distribution of the wealth created by companies should reconcile the need to maintain financial strength, investment needs and shareholder remuneration. At LBP AM, we believe it is vital for businesses not to employ practices that distort competition and run the risk of disrupting the normal operation of the markets, while also keeping close track of fiscal practices. 

Strongly promote sustainable management of human and natural resources

The GREaT investment philosophy stresses the importance of companies sustainably managing their human and natural resources. In terms of human resources, we take into consideration HR management, sustainability of work, observation and empowerment of union rights, respect for Human Rights in regions of establishment and all along the supply chain, prevention of all forms of discrimination, etc. In terms of natural resources, we verify that companies act responsibly towards the planet, and that resources are used efficiently without being over-exploited. 

Make the economic and energy transition a factor of sustainable growth.

We target companies that strategically position their products or services in the least energy-intensive solutions. In all sectors, we assess the incorporation of energy transition issues in their choices of energy supply, investment or financing, in their strategy and in the shift to new modes of responsible and sustainable consumption. 

Favour companies actively participating in local and regional development 

The GREaT approach places a premium on companies helping to promote employment and training, create and develop local activities, and in general the transfer of technologies and skills to developing countries.

Our goal is to identify companies that manufacture products generating a positive impact on society and the economy: products and services accessible to disabled persons, establishment of Bottom of the Pyramid strategics, etc. We examine how they integrate the social and economic impacts of their activities on their stakeholders, particularly including local communities. For companies restructuring their operations, we look closely at how the restructuring plan is implemented, especially through the quality of social dialogue. 

Combine sector, quantitative and qualitative analyses

The goal of our approach is to identify sustainable solutions and investment opportunities, and to provide an analysis of each entity’s risks.
The unique value of our GREaT non-financial analysis method lies in the following guidelines:

     Innovative – four pillars to analyse risks and opportunities
•     Forward-looking – identification of companies geared toward the future
•     Rigorous – a single set of standards to analyse, measure and score all asset classes
•  Flexible – adaptation to investor sensitivities, to asset classes


A transparent investment process

We have chosen to work with a clear and demanding set of standards: those established by the public SRI certification (“Label ISR”). By taking such a proactive strategy, we are able to guarantee transparent and audited SRI processes, with the significant and binding integration of non-financial analysis in accordance with our proprietary GREaT analysis method.