Our engagement policy
METROPOLE Gestion has established an engagement policy to encourage companies to improve over the long term in three main non-financial areas: Environment/Social/Governance.
Our engagement is expressed through:
- Exercising the voting rights attached to securities held in the portfolio, as part of a voting policy published on our website (under Our ESG Documentation).
- Direct thematic or collective dialogue with issuers as a means of detecting ESG risks and influencing the strategy of companies analysed.
METROPOLE Gestion works with the companies in which it invests when it identifies ESG risks or opportunities for improvement.
In concrete terms, this engagement can take three forms: individual engagement, thematic engagement and / or collective engagement.
Individual engagement covers the actions carried out directly by METROPOLE Gestion through dialogue with companies and exercising voting rights on ESG resolutions.
Thematic engagement is the result of reflection, carried out and reviewed each year internally, on very specific topics.
Collective engagement is realized collectively through groups or associations of investors in order to increase influence on companies. METROPOLE Gestion reserves the right to participate in collective actions concerning ESG matters whenever it deems it necessary in the interests of investors and stakeholders. As a signatory of the Carbon Disclosure Project, METROPOLE Gestion has joined the "Non-Disclosure Campaign", a collective engagement campaign that targets companies that do not respond to the CDP’s requests for information. This commitment aims at improving information transparency relating to climate change provided by companies. In addition, in 2020, METROPOLE Gestion joined the "CDP SBT campaign", a campaign asking companies to commit to fight climate change by setting science-based targets through the Science Based Targets initiative’s (SBTi).
METROPOLE Gestion implements its engagement by exercising voting rights on ESG matters in accordance with its voting policy.
METROPOLE Gestion has set up an organization that coordinates all the information needed to exercise the voting rights attached to the securities held by the portfolios for which it exercises voting rights.
As a matter of principle, METROPOLE Gestion favourably addresses any resolutions relating to ESG issues that are put to the vote.
We also intervene in advance of shareholders’ meetings in order to address and possibly influence the content of proposed resolutions on the agenda, to ensure that it aligns with the interests of minority shareholders and complies with our principles of governance.
Whenever it deems necessary, METROPOLE Gestion reserves the right to ask questions to companies, to refuse resolutions or to support external resolutions.
METROPOLE Gestion implements its engagement through dialogue with companies during interviews with CSR and company managers.
As part of its management process, METROPOLE Gestion conducts more than 450 company visits a year. Companies held in portfolios are seen on average 3 times a year. ESG discussions are held at least once a year.
Dialogue provides a good understanding of ESG issues at the company level, and the opportunity to look in greater detail at the identified risks, pinpoint unidentified risks during the rating process and develop the company’s strategy.
As part of this dialogue, METROPOLE Gestion encourages companies to be transparent about ESG issues, for example by publishing their ESG strategy, policies and results.
Moreover, in the event of significant controversy, proven ESG risk, absence or insufficient significant improvement within the company being examined, the portfolio management team may decide to reduce or liquidate its position as specified in our Policy of controversies prevention and verification.
Our engagement policy and engagement report are available to investors.