Monday 15 March 2021

Expert updates

Measuring impact at CPR AM: not just setting goals, meeting them as well

Impact investment began at CPR AM in 2017 with the launch of CPR Invest – Food For Generations. Since then, strategies in education and reduction of inequalities have emerged in 2018 and 2019.

FOOD FOR GENERATIONS, THE INDICATORS WITH A MONTHLY COMMUNICATION

This international equity fund aims to meet the global food challenge, with the world facing a growing population amidst scarcer and scarcer resources and climate change. To do so, our responsible approach to the agro-food value chain is integrated at various stages of the investment process: a) defining the thematic universe (e.g., tobacco and alcohol exclusions); b) an ESG analysis of companies in general and a selection of criteria chosen for their materiality regarding the challenges of the thematic; c) follow-up of controversies; and d) introduction of impact targets in portfolio management.

The three impact indicators – water intensity, carbon intensity, and waste recycling rate – have been chosen for their relevance to the fund’s philosophy, their homogeneity with the portfolio as a whole and their satisfactory level of coverage. The portfolio aims to outperform its investment universe before applying the sustainable approach.

The results have been calculated and released monthly since the fund’s launch. Follow-up, improvement and transparency are to us the keys to positive investments' contribution over time.

EDUCATION: RELEASE OF THE 2ND ANNUAL IMPACT INVESTING REPORT IN 2021

In January 2020, CPR AM released its first annual impact report dedicated to its Education strategy. Then came the report on its Climate Action strategy. We are back early this year with the 2nd edition of the Education report, enriched with new data. We urge you to discover it in its entirety on our website. An executive summary is nonetheless provided as an appetiser. Not only is it unique in the thematic, it is also one of the few impact reports on ESG’s social dimension. The major challenge remains access to quality data. To do so, we first defined relevant and homogenous criteria of each type of activity in the investment universe. We then contacted all portfolio companies. When they failed to reply, we supplemented the data by relying on official documentation.

The impact indicators released in the report now cover 77% of the portfolio, with at least one criterion for each of 54 companies. Coverage of each criterion extends to the level of the companies concerned by this criteria. For example, 100% coverage is provided on education and student services (transports, housing, and restaurants) stocks. The contribution to the Sustainable Development Goals, the ESG profile and the engagement policy have also been released.

Find out more about the methodology by downloading the full report on our website

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