Reportings November 2020
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Responsible investment, a conviction
“Dôm Finance is convinced that companies that incorporate sustainability at the heart of their strategy, stand out as visionary organizations, focused on creating long-term value and performance.” – Vincent Priou
In an environment where the climatic, social and economic dimensions are in full mutation, Dôm Finance places itself at the heart of sustainability issues to promote a better world. Our long-term vision has given rise to the desire to reconcile two worlds that have been opposed until now: capitalism and sustainability. Our teams of investors strive to value good social and environmental practices in order to favor a fair allocation of capital. Investing in certain themes, such as the pharmaceutical industry or digital technologies, allows us to improve access to health care, to facilitate the autonomy of the elderly, and more generally to have a positive impact on both the social and environmental levels. On our scale, this allocation allows us to contribute as much as possible to the Sustainable Development Goals (SDGs). Ultimately, Dôm Finance allocates its clients’ capital to create equitable value for all stakeholders: shareholders, employees, suppliers, consumers, etc.
Dôm Finance offers the possibility to give meaning to its investments by promoting a sustainable and long-lasting performance. The analysis of extra-financial criteria enriches the traditional financial analysis. The study of key indicators constitutes an essential complement of information for the investor, allowing him to materialize risks and seize opportunities. Our responsible investment process allows us to visualize risks that traditional financial analysis cannot highlight.
Which car manufacturer respects the carbon emission thresholds imposed by the European Union? What are the consequences?
The Stellantis Group complies with the carbon emission thresholds. As an investor, Dôm Finance protects itself from several risks:
- regulatory risk related to unmet objectives
- financial risk related to the purchase of carbon credits (and asset valuation)
- physical risk related to the climate
- reputational risk related to consumers
- risk of controversy.
Dôm Finance aims to prove the true value of its investment process. On a monthly basis, we focus on transparency in order to communicate reliable and readable sustainability indicators through detailed and consistent reporting.
Our commitment
Dôm Finance is a committed player with companies. The implementation of a recurrent dialogue with companies aims to improve the less good practices of certain companies and thus to raise their awareness so that they integrate sustainability criteria, including environmental, social and governance criteria, into their strategy.
Dôm Finance places commitment at the heart of its analysis, evaluation and selection process, but also in its approach aimed at influencing companies on certain areas of improvement. Dôm Finance’s commitment is expressed through dialogue with companies, but also through votes at general meetings. This commitment is an essential part of Dôm Finance’s fiduciary responsibility in the interests of its shareholders.
As investors, we have the strength to be able to move the lines for the benefit of our clients. In order to do so, Dôm Finance invests in quality data and high-performance tools. We actively support local initiatives and public action. Dôm Finance is a signatory of the Carbon Disclosure Project, a non-profit NGO that publicly discloses environmental data on more than 2,500 issuers. This initiative allows us to promote shareholder engagement alongside other influential investors. CDP brings together nearly 520 investors with assets under management of €106,000 billion!
In addition, Dôm Finance has been a signatory of the Principles for Responsible Investment since 2021. Supported by the United Nations, this initiative gathered at the time of the signature more than 3,000 signatories for a total outstanding amount of more than 100,000,000 billion dollars. The emergence of a framework around Responsible Investment allows us to integrate a new dimension to traditional financial analysis: extra-financial analysis. Our membership to the PRI allows us to account for our commitment, but also to remain among the players incorporating the best practices in this area.
our methodology
Dôm Finance has put in place a global, simple, clear and transparent approach to responsibility.
Normative exclusions :
Controversial weapons
Dôm Finance excludes ex-ante any company involved in controversial armaments. Whether it is through blinding, burns, various mutilations via non-localizable shrapnel, or the use of uranium which inflicts catastrophic humanitarian consequences over the long term; all these weapons cause excessive or unjustified suffering to combatants and can also indiscriminately affect civilian populations, even in times of peace.
Coal
Following negotiations at the 2015 Paris Conference, an international consensus emerged to limit the impact of global warming to 2°C by 2100. A study by IAE highlights the responsibility of coal in climate change. Coal accounts for 40% of the world’s greenhouse gas emissions. Stopping the exploitation of coal seems to be a major challenge to achieve our goals and limit global warming. We have chosen to exclude companies involved in the coal industry.
Non-financial analysis and our service providers
Dôm Finance has chosen 4 complementary data providers.
Based on our own analysis, our external service providers provide us with the essential extra-financial data. Dôm Finance uses the different databases to refine the granularity of the analysis using a rigorous and recognized methodology.
We analyze more than 6,000 companies on their extra-financial strategy. Some sectors are more sensitive to environmental issues and others to social issues. Our analysis frame of reference is adapted according to the sector studied. An insurance company and a mining company have incomparable strategies and objectives, so the criteria used to analyze these two sectors are quite different.
The analysis of extra-financial risks generally reflects the level of controversy. Companies that are not very virtuous and do not care about sustainability issues are subject to more frequent controversies. This bad news, which occurs more often in companies that do not pay much attention to their ESG issues, represents a major risk when making an investment decision.
Our Responsible offer
- Sélection Action Rendement
- Sélection Action Rendement International
- Dôm Reflex
- Dôm Alpha Obligations Crédit
- Esk Exclusif
- Dôm Sub
- Dôm Patrimoine
Dôm Finance is committed to
Like any responsible company, we have a responsibility to protect our human capital and our environment as much as we can. We have put in place four actions that we respect.
We are permanently stopping the consumption of water from plastic bottles as of 2019. We have installed a water fountain with refillable bottles. At this rate, we are avoiding the consumption of over 2,000 bottles per year.
In 2019, we moved to 1 rue des Italiens in an eco-friendly building. Automatic lighting, self-regulating heating, and sensors on faucets help reduce our carbon footprint.
In 2021, Dôm Finance invested in a fleet of bicycles for its employees in order to offer a sustainable mobility solution and to encourage responsible travel. By seeking better alternatives for the preservation of the planet, Dôm Finance is an integral part of the actors of change working for a better society.
Finally, we are actively looking at solutions that will allow us to be aligned with the Paris Agreement to be carbon neutral by 2030. In this context, Dôm Finance planted 149 trees in 2021 through Reforest’Action, and continues its action in this direction. The planting of trees has made it possible to absorb the emissions emitted (22 tons of CO2) by the current activity of Dôm Finance.
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Kg of CO2 emitted
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arbres plantés
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final carbon balance
Research paper
A research paper, answering the question of the integration of extra-financial data: a useful complement to the decision making process in the assessment of financial performance?
Read the paper below:
Report Article 29 Energy and Climate Law
Dôm Finance 2021 report on Article 29 of the Energy-Climate law.
Read the report below:
