2nd Quarter 2024: Our active stewardship illustrated

Published on
11 September 2024
Read time
1 minute(s) read

As a long-term investor, we engage in regular dialogue with the companies in which we invest to encourage them to improve their practices for taking environmental, social and governance (ESG) criteria into account. Find out how our active approach to stewardship was borne out in Q2 2024.

11Engagements held
99%of meetings voted
62%of meetings where Carmignac voted against management at least once*

*This data refers to the number of meetings where Carmignac took a vote position against the recommendation of the board. In practice, this refers to votes cast against management-led resolutions and, in most cases, votes cast for shareholder-led resolutions (unless the shareholder-led resolution is supported by management).

Carmignac is committed to aligning its dialogue strategy with five types of engagement: engagement on ESG ratings, thematic engagement, impact engagement, engagement on controversial behaviour, and engagement on proxy voting decisions.

Over the second quarter of 2024, we initiated dialogue with investee companies 11 times and covered two types of engagement.
Over the second quarter 2024, Carmignac voted against the management of our investee companies at least once at 62% of meetings voted.

Find out how we specifically engaged with an investee company during the second quarter 2024.

Edenred SE

Sector: Financials
Region: France

The company is an equity holding in our funds1.

The company has been involved in a number of controversies relating to anti-trust and auction rigging. We engaged with them to understand how they managed the controversies and whether they strengthened their controls following these incidents. We also used this opportunity to ask some general ESG questions.

In May 2024, we held a videocall with the company’s investor relations representative.

The company’s controversies relate to historic events in the period of 2019-2022, relating to their paper-based solutions. Given that they have now switched to digital solutions, they do not anticipate similar issues occurring. They also explained to us that they began reviewing their tender process by hiring an external firm to provide them with recommendations, but the conclusions have not been finalised yet. We welcome the company’s commitment to address this issue, but note that as they operate a decentralized business model, changes may be difficult to implement.

We reviewed the company’s ESG approach more widely and we acknowledge their commitment and actions to improve employee retention by putting targets for management to reduce turnover rate and their strategy to reduce plastic waste by implementing cardless alternatives for customers.

Following the engagement with the company, we modified our START rating under the governance pillar from B to C. This was done to reflect the controversies the company has faced, and the fact that the redesign of the tender process has not been finalised yet. We will continue to monitor the company and engage where necessary.

1As of 30th June 2024: Carmignac Portfolio Grande Europe, Carmignac Portfolio Human Expérience, Carmignac Portfolio Patrimoine Europe, FP Carmignac European Leaders.

To find out more on our responsible investment philosophy, please visit our Sustainable Investment section:

Sustainable Investment

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CARMIGNAC GESTION Luxembourg - City Link - 7, rue de la Chapelle - L-1325 Luxembourg - Tel : (+352) 46 70 60 1 Subsidiary of Carmignac Gestion - Investment fund management company approved by the CSSF Public limited company with share capital of € 23,000,000 - RCS Luxembourg B 67 549