Our SRI analysis method
Our clients want to give meaning to their investments and benefit from enhanced management of risks and opportunities related to the challenges of sustainability. Thanks to GREaT, our SRI analysis methodology, we allow them to evaluate their investments’ contribution to these challenges.
An exacting proprietary approach
The GREaT methodology aims to produce a quantitative assessment of governments, companies and projects in two dimensions: the responsibility of their practices, and the contribution of their products and services to meeting the challenges of sustainability.
GREaT analysis is based on four pillars – responsible governance, sustainable management of resources, the energy transition and local development.
Almost 10,000 issuers are subject to a GREaT quantitative analysis that can be supplemented on an ad hoc basis by a qualitative analysis conducted by our managers and analysts to reflect material information not yet captured by ratings agencies.
We have also expanded GREaT to the specificities of each real asset class to assess how counterparties integrate sustainability factors into their practices and their offering of products and services.
The GREaT methodology
Specific features of our
GREaT methodology
Combining quantitative
and qualitative research
In equity and fixed-income management, the GREAT qualitative score is based on four pillars, 13 criteria and 60 indicators aggregated by AGIR, a proprietary calculation tool, while taking into account specific sector and geographical features and companies’ size.
It can be supplemented by the qualitative research of our managers and analysts, who enrich and adjust it based on their knowledge of companies.
Identifying companies’
positive contributions
We have developed a method to identify companies whose products and services offer solutions to the challenges facing our society. These solutions are those needed to meet environmental and social challenges and are classified into seven sustainable thematics: agriculture and sustainable foodstuffs; green buildings; the circular economy; renewable energies; environmental services and solutions, transport and sustainable mobility; and healthcare and well-being. We identify those companies that make a positive and significant contribution to each thematic through their offering of products and services.
Research on
sovereign issuers
We have adapted the GREaT methodology to scoring governments on their public policies in adopting sustainable practices to address our society’s major challenges. We seek to identify those governments having resilient institutions, that protect their human and natural resources, and that work in favour of the energy transition and encourage balance in local economies.
Expanding SRI into real
assets and private equity
Since 2014, we have established a pioneering practice of integrating ESG criteria into investments in real assets and private equity. Our SRI managers and experts have developed research grids based on the four GREaT pillars and adjusted them to real assets, including corporate assets, infrastructure and real estate. These grids are used to assess the exposure of companies and projects to the challenges of sustainability, and the quality of mechanisms set up to control them and to make business models more sustainable.
Evaluating actors of the
social and solidarity economy
We support investors wanting to contribute to the development of the social and solidarity economy (SSE) via solidarity funds. For this purpose, we rate SSE actors whose internal operations and activities are based on a principle of solidarity and social utility. Indeed, their mission statement often consists of providing responses to environmental and social challenges, and their activities generally contribute to local development by providing greater access to housing to vulnerable persons, social integration through employment, revitalising rural areas or promoting short consumption circuits.
The LBP AM / Manaos partnership
In October 2023, Manaos, an investment services platform, and LBP AM announced their partnership, which translates into the availability on the platform of LBP AM's proprietary ESG rating method: "GREaT".
Now available on the Manaos platform, "GREaT scores" can be automatically associated with investors' portfolio data, complemented by other scorings available from the fintech's ESG marketplace, extracted in a few clicks in Excel, SFTP or API format, or integrated into ESG analysis reports and other regulatory documentation.
